High Value High Risk and investment guidance material

High Value/High Risk project assurance process

The State Government's High Value/High Risk (HVHR) project assurance process is well under way. Under the HVHR process, which has been in place since December 2010, infrastructure and ICT projects identified as being high value and/or high risk will be subject to more rigorous scrutiny and approval processes.

Increased central oversight extends through various stages of investment development and implementation. The objective is to ensure that major infrastructure and ICT investments are delivered successfully, on time and budget.

The process applies to all general government sector infrastructure and ICT investments with a total estimated investment (TEI) of $100 million or more (regardless of funding source) and/or projects identified as high risk under the Gateway Project Profile Model (PPM) . The Government may also nominate projects to be part of this process.

HVHR investments are subject to extra scrutiny and ongoing involvement by the Treasurer and DTF as indicated in the summary table below. This includes a requirement to obtain the Treasurer’s approval of project documentation at key stages of the project’s lifecycle.

HVHR projects are also subject to compulsory Gateway Reviews and active monitoring throughout the life of the project.

Stage	Action
Business case Approval	Assessment of preliminary business case quality and policy merit. Treasurer’s approval of final business case: project deliverability (on time and on budget). Only robust business cases can be submitted to Government for funding consideration.
Project tendering	Treasurer’s approval of: all procurement documentation prior to release; preferred bid, prior to announcement; and contracts, prior to signing and any major variations.
Project implementation	Closer oversight by DTF of: time, scope and budget reporting and analysis; and any agreed interventions or remedial actions

Further information on the High Value/High Risk project assurance process is available from the HVHR Fact Sheet (260 KB PDF) (1.8 MB DOC).

Investment guidance material

Useful guidance material and processes supporting the development of robust and successful investment development and delivery.

The HVHR process is underpinned by a range of DTF investment guidance material which supports the development and successful delivery of robust investments. This investment guidance material, which also applies to non-HVHR investments, is progressively being reviewed and updated to ensure greater rigour in project design and implementation.

The Investment Management Standard provides a way of identifying factors that are critical to shaping any investment and delivering greater value for money. At key points in the investment lifecycle these tools help an investor shape, monitor, control and evaluate an investment.

Investment Lifecycle Guidance material presents guidance on processes, documents and other requirements to support robust development and delivery of all investment proposals. At each stage of the investment lifecycle this guidance helps investors to shape, monitor, control and evaluate an investment.

Related Victorian Government investment processes and policies

The Partnerships Victoria Framework outlines the whole-of-government approach to the provision of public infrastructure and related ancillary services through public-private partnerships.

The Victorian Government Policy and Guide for Project Alliance Contracting outlines the whole-of-government approach to the provision of public infrastructure through an alliance contract.

Gateway Reviews provide project assurance support to projects at key decision points in the investment lifecycle. As noted above, HVHR projects are required to undertake Gateway reviews.

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