Norway: A Regime for External Quality Assurance of Major Public Projects

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Norway: A Regime for External Quality Assurance of Major Public Projects
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Summary of presentation

Poor engineering and management, unrealistic budgets, scope changes at late stages, cost overruns and critical delays have been characteristic features of many a big investment project in Norway, as in many other countries. In response to these challenges, the Ministry of Finance established a Quality Assurance Scheme in 2000 (QA 2). QA 2 is mandatory for all State Sector projects with a cost estimate exceeding NOK 500 Million (some 60 Million Euro / 75 Million US Dollars). It is performed by external consultants holding framework contracts with the Ministry of Finance. The contracts provide a common standard based on well-established principles of project management. QA 2 is undertaken at the end of the basic design/engineering phase and is a necessary step before new projects are considered for the next Budget Proposal.

For all its merits, the QA 2 Scheme does not address the more profound issue of whether the proposed project is an adequate response to real societal needs. It is indeed of limited value that a project was completed according to scope, on budget and in time, if it should never have been approved. Commencing in June 2005, the Quality Assurance Scheme is extended to include quality assurance of the choice of concept (QA 1), to be performed at the end of the pre-study (appraisal) phase. QA 1 aims at giving the best possible support for deciding on whether and how to proceed with the project into the basic design/engineering phase. A ranking of conceptually different alternatives is performed on the basis of a complete economic assessment.

This presentation explains the main features of the Norwegian QA System. Emphasis is put on the challenges in arriving at Principles of Good Governance, and in the application. It is imperative that the system is perceived, not as an exercise of technocracy, but as a valuable support in the political decision making process.
 

Autobiography

Mr. Peder Berg has held a number of different positions with the Ministry of Finance. Since 1997 he is responsible for the development, implementation and administration of systems governing the decision making process and managerial framework for major public projects. The efforts have thus far resulted in the introduction of the Norwegian two-step decision gate system, backed by quality assurance performed by external consultants.

Attaching considerable importance to scientific research as a basis for feedback and further development, the Ministry established the Concept Research Program in 2002. Mr. Berg is chairman of the Program’s steering committee.

Also privately, Mr. Berg is involved in issues relating to decision making processes and project management. He was i.a. co-founder of the PMI Norway Oslo Chapter.