Assurance Reviews of Major Projects: Insights for Best Practice

Independent assurance reviews play a critical role in supporting the success of major projects and programs. As structured assessments conducted by objective experts, these reviews provide valuable insights and validation across project milestones. What, then, does best practice look like for designing and conducting effective assurance reviews?

Benefits and Limitations of Assurance Reviews

Independent assurance reviews can deliver several key benefits to project owners and sponsors:

• An objective perspective
• Enhanced confidence in project delivery
• Complementary support to existing governance frameworks
• Opportunities for project teams to refine ideas and approaches with expert input

However, certain limitations also apply:

• Reviews may miss primary risks and critical decision points if not appropriately targeted
• Risk becoming one-off assessments that do not inform ongoing project improvements
• Potentially perceived as procedural rather than integral quality control measures

Guidance from the United Kingdom’s Department for Transport and Infrastructure Projects Authority underscores the nuanced role of independent assurance, with several messages relevant to Australian project environments:

• Target independent assurance toward strategic risks to strengthen key decision-making
• Interpret assurance insights with careful consideration
• Avoid assurance for its own sake
• Understand that assurance does not eliminate risk or replace informed judgment

Success Factors for Effective Assurance Reviews

Drawing from both Australian and international practice, several characteristics define a successful independent assurance review:

• Clearly defined terms of reference
• Comprehensive access to information
• Skilled, relevant reviewers with deep project experience
• Review leaders who maintain objective yet constructive relationships with the project team
• Teams that view assurance as guidance, not prescriptive instruction
• Reviewers who seek to understand project decisions in context
• Project teams that embed risk/assurance frameworks within their operational practices
• A project culture that views independent review as an opportunity for improvement

Trends and Themes in Gateway Reviews

Gateway Reviews, originating in the United Kingdom, are commonly used in major project and program assurance. This structured process assesses project milestones with an independent eye, often through multiple “gates” across the project lifecycle. In addition to overall confidence ratings, reviews may include “health checks” or “deep dives” into specific issues.

The accumulated findings from these reviews are invaluable, highlighting recurring themes that serve as early indicators for potential project risks. In Australia, Infrastructure New South Wales (NSW) provides regular insights from its Infrastructure Investor Assurance Framework. These reports are highly regarded for their timeliness, evidence-based approach, and breadth, covering a wide array of capital projects.

In its 2023 report, Infrastructure NSW identified top themes from Gateway Reviews, ranked by the frequency of critical recommendations:

Source: Infrastructure NSW, Trend and Insights Report (2023)

Western Australia has also published similar findings, indicating recurring themes of business case quality, risk management, governance, project management, and procurement. These commonalities serve as “early warning signs” for project sponsors, teams, and reviewers.

Five Key Principles for Effective Assurance Review Design and Participation

For those involved in independent assurance reviews, the following principles can guide an effective approach:

1. People are Paramount
   Establishing clear terms of reference, selecting experienced reviewers, and fostering a team culture that values assurance all contribute to maximizing review outcomes. Project teams that view assurance as an integral part of risk management stand to gain the most from these reviews.
2. Project Delivery Comes First
   Reviewing is inherently easier than delivering a project, and effective reviewers recognize this by understanding the context, challenges, and goals of the project team.
3. Leverage Available Evidence
   Drawing from existing tools, case studies, and past reviews can help focus assurance on areas most relevant to each project.
4. Integrate Assurance into Broader Risk Management
   An assurance review is one component within a comprehensive risk and quality management framework. How a project applies review insights can significantly impact project improvements.
5. Pay Attention to Consistent Trends
   Independent reviews frequently reveal common themes. Being aware of these trends enables reviews to target areas where additional support can enhance project outcomes.

With these principles in mind, project teams and sponsors can approach independent assurance reviews as valuable opportunities for validation, improvement, and strategic alignment. To learn more, reach out to the Program & Project Assurance team at NineSquared.