What is Capital Project Governance?

Project governance is the overarching framework of leadership, accountability, decision-making, oversight, assurance and control established to direct and manage a capital project throughout its entire lifecycle, from initial inception and investment justification through definition, approval, execution, commissioning, handover and benefits realization.

It establishes the organizational structures, roles, responsibilities, delegated authorities, decision-making processes, stage-gate approvals, performance monitoring and assurance mechanisms necessary to ensure that the project is developed and delivered in accordance with its approved business case, strategic objectives, scope, budget, schedule, risk appetite and required technical, safety, environmental and operational standards.

Throughout the project lifecycle, governance provides strategic direction, maintains executive oversight, ensures appropriate control of capital expenditure and commitments, facilitates timely and informed decision-making, challenges performance and risk, and provides effective mechanisms for escalation, intervention and corrective action.

Project governance ensures that the organization maintains control and accountability over its capital investment, makes informed decisions at critical points in the project lifecycle, and delivers a safe, fit-for-purpose asset that achieves its intended business outcomes and long-term value.

Governance does not end at FID, nor does it begin and end with steering committee meetings. It is a continuous lifecycle discipline that ensures the right decisions are made, by the right people, at the right time, with the right level of authority and assurance.