T2D project risk and issue management

Audit snapshot 

Key findings

Our audit found that the Department for Infrastructure and Transport (DIT) has established structured risk and issue management arrangements for the River Torrens to Darlington project (T2D project). However, we identified opportunities for DIT to strengthen its oversight and provide greater assurance that significant project risks and issues are being effectively managed. We found:

• DIT’s oversight and assurance arrangements for significant Alliance-managed risks should be strengthened, to support consistent risk identification, assessment and escalation
• governance reporting should be strengthened to support a clearer understanding of significant risk exposures and whether mitigation actions are effective
• Alliance issue management arrangements should support a more consistent and transparent approach to identifying, assessing and resolving project issues 
• evidence supporting the effectiveness of controls, treatments and actions should be strengthened to clearly demonstrate they are operating effectively and as intended.

We reviewed whether appropriate arrangements are in place to identify, manage and oversee risks and issues associated with a project of this scale and complexity. 

We did not review whether the T2D project is on track for delivery within its planned time frames and budget, and compliance with the Project Alliance Agreement.
 

Why this matters

The T2D project is the largest and most complex infrastructure project in South Australia’s history. The project main works are being delivered with private sector Alliance partners under an Alliance agreement, however DIT retains ultimate accountability for achieving project objectives and managing the State’s risk exposures. The private sector Alliance partners share cost overruns on the main works with the State up to a capped amount. The State bears all costs above that amount.

A project of this scale and complexity demands the highest level of risk and issue management to support informed decision making and assurance that existing and emerging threats to cost, schedule and quality outcomes are effectively managed. 
 

Key facts

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