Martin Buck, Transition and Strategy Director at Crossrail, gave an overview of the governance arrangements, their evolution and lessons learned. This was an APM Governance SIG event on 17th December 2014.

1. Martin Buck FICE FRICS
Transition and Strategy Director Crossrail
Governance
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2. What is governance?
Why governance matters
Considerations
Who are the parties?
Establishing good governance
Crossrail example
Contents
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3. Corporate governance can be defined as:
“The function of governance is to ensure that
an organisation or partnership fulfils its overall
purpose, achieves its intended outcomes for
citizens and service users, and operates in an
effective, efficient and ethical manner.”
The Independent Commission on Good Governance in Public Services
Governance - what do we mean?
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4. Governance - what do we mean?
Governance of project management can be defined as:
“The governance of project management concerns those areas of
corporate governance that are specifically related to project
activities. Effective governance of project management ensures
that an organisation’s project portfolio is aligned to the
organisation’s objectives, is delivered efficiently, and is
sustainable. Governance of project management also supports
the means by which the corporate board and other major project
stakeholders are provided with timely, relevant and reliable
information.“
Directing Change, Association for Project Management, 2011
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5. For Infrastructure projects, good governance
is about a balance between the natural desire
of sponsor(s) to retain control, and the need of
the delivery team to have sufficient freedom to
allow it to manage the risk to meet the project
objectives.
Project Initiation Routemap – Governance Module
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Governance - what do we mean?

6. Why governance matters
Effective project governance is critical to project success.
5 of the 8 common causes of project failure attributable to
weak governance;
7 of the 10 common causes attributable to good governance;
3 out of 5 elements fundamental to successful project
delivery relate to good governance;
effective governance as one of six key responsibilities for
client organisation;
Weak governance main contributor to project failure.
Project Initiation Routemap – Governance Module
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7. Factors to consider
Accountability
Authority
Alignment
Disclosure
But also scale and lifecycle
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8. Programme or Project
Sponsor
Parties - typical structure
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Promoters Developers Financiers
Sub-projects Partners Supply chain
Accountability
Authority
Alignment
Disclosure

9. Sponsors – commissioning body
Policy/business case owners
Expertise
Constraints
Resources
Land and other enabling interests
Funding
The parties
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10. Project - executing body
Programme and project management
Procurement and supply chain
Safe delivery
Programme controls
Personnel
Risk management
Reporting
The parties
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11. Factors – scale & lifecycle
Complexity of the project
Maturity of both parties
Complexity of commissioning body
Development curve of execution body
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12. a clear statement of the objectives and parameters
for delivery between the sponsor(s) and the
execution team including arrangements for remedy
in the event of difficulty;
the project being sufficiently autonomous with a
single controlling mind;
a clear system of delegation and determined
process for timely decisions that fall outside the
limits of delegation;
a determined process for controlling change;
Establishing good governance
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13. a determined process for reporting and other
communications between the sponsor(s) and
execution team;
a collaborative culture and working relationship
between sponsor(s) and execution team;
board members have sufficient understanding of the
project context to make reasonable timely decisions
(or seek advice to help them); and
a defined system for assurance at all levels.
Establishing good governance (cont)
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Project Initiation Routemap – Governance Module

14. Background
Parties
Principal risks
Crossrail
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15. January 1989
 East West Crossrail
 Chelsea-Hackney line
 Jubilee line extension

16. Crossrail Route

17. National/strategic champion
Local champion
Stakeholder support
Population
Business
Groups – London First
Companies – Canary Wharf/Berkeley
Group/John Lewis
Industry
Network Rail/TfL London Underground
Project/construction/equipment suppliers
Losers as well as winners
Political commitment

18. Parties
Department for transport
Transport for London
Network Rail
Canary Wharf Group
British Airports Authority
Corporation of London
London First

19. Funding
(£14.8bn)
Other Funding
(£2.45bn)
Network Rail
Others
DfT
(£5.20bn)
TfL
(£7.15bn)
GLA
BRS & Direct
Contribution
Community
Infrastructure Levy
TfL
Direct Contribution
Developers
Contribution
Land and Property
BAA plc
City of London
Direct Contribution
(4.7bn)

20. Catastrophic failure
Cost escalation
Change
Operator and systems interface
Principal risks

21. Integrated Team
Governance and stakeholders
TfLDfT
Project
Partners
Crossrail Ltd
Sponsors’ Agreement
Project Development
Agreement (PDA)
Shareholder
Agreement
Design
Consultants
London Underground
NR (on-network works)
Docklands Light Railway
Canary Wharf Group
Berkeley Homes
Contractors
CTOC
Rolling Stock
/ Depot
Industry
Partner
Agreements
Delivery
Contracts
‘Crossrail Project’
Executive
Team
Operator
RfL
P Rep
Operating
Contracts
Framework
Contracts
JST

22. Sponsors
DfT
TfL
Project - Crossrail Ltd
Independent Board
Chairman
4 independent directors – 1 serving official CoL
2 DfT/TfL nominees
Parties & Roles
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Act together through
a joint sponsor team

23. Parties & Roles
Network Rail
No sponsor role
Delivery agreement with Crossrail
Canary Wharf group
No sponsor role
Delivery Agreement for Canary Wharf station
BAA
No role
Corporation of London
No formal role
London First
No formal role
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24. Sponsor Board
Rotating Chair
TfL
MD Finance
TfL Head of
Programmes
DfT Head of Rail
Investment
DfT DG Rail
Head of
Joint Sponsor
Team
P Rep

25. Crossrail Ltd Board
Non-exec
Chair
TfL
nominee
DfT
nominee
Non-execNon-exec Non-exec
CRL Finance
Director
Executive
Directors
CRL
Programme
Director
CRL CEO

26. Project Development Agreement
Quasi private sector arms length DA
CRL obligation to deliver
Programme, milestones, funding
Change
Reporting and assurance
Review Points, Intervention Points
Joint Sponsor Team
Relevant Events
No relief

27. Review point 1 – July 2008
Parliament grants powers - Crossrail Bill passed
Review point 2 - 2008
Sign core project documents
Review point 3 – Sept 2009
Interim assurance point – programme and cost
Review point 4 – April 2011
Final withdrawal point for either sponsor, full
operational powers to CRL inc award of contracts
4 Review Points
Delegation increased as stages of development demonstrated

28. Summary
Complex multi-stakeholder environment
Clear definition of sponsor and deliverer
Obligations formally agreed
Funding certainty
Autonomous SPV style delivery organisation
Authority and delegations aligned with
development

29. 37km of tunnels

30. Station progress

31. Thank you
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