Poorly performing projects are the bane of clients, designers and contractors alike. Adverse impacts range from cost and time overruns, inadequate build quality, poor project relationships, loss of reputation, public clamour and legal disputation. Reducing the adverse impacts of poor projects is universally seen by industry as a major imperative. This proposal for a sub project to Project 2001-003-C Value Alignment Process for Project Delivery develops the element of Project Diagnostics which explores the reasons why projects are failing to achieve their intended outcomes. The indicators that provide advanced warning will be developed into a Diagnostics Toolkit Protocol which will include metrics to indicate when projects are going wrong, to diagnose why projects may be failing, and suggest means of returning them to better health with a direct linkage to better business outcomes. It is likely that if this project diagnostic and palliative/corrective role is competently carried out, a unique and potentially powerful solution to assist failing projects will be developed.