Contract and Procurement Management

Running head: CONTRACT AND PROCUREMENT MANAGEMENT
Contract and Procurement Management
Name of Student-
Name of University-
Author’s note-

CONTRACT AND PROCUREMENT MANAGEMENT
Table of Contents
Introduction......................................................................................................................................1
Part A: Procurement process and scope of New Royal Adelaide Hospital project.........................1
Part B: Project Complexities...........................................................................................................4
Part C: Mitigation processes and possible learnings.......................................................................6
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

CONTRACT AND PROCUREMENT MANAGEMENT
Introduction
The project that is undertaken by the state is to develop a new hospital named as RAH
(Royal Adelaide Hospital). This project of building a new hospital is considered as the largest
project of social infrastructure. New technologies such as automated guided vehicles for
transporting supplies throughout the hospital, biomedical equipment and other clinical equipment
are to be integrated in the project of developing RAH (Mignone et al., 2016). The project is
given to Project Co. (SA Health Partnership Pty Ltd) and the duration of the project was 35
years. The project is considered to provide and maintain sustainable health system in future.
Project Co has included governance structures as well as arrangements for overseeing the
project.
This report states the procurement process of developing the new hospital and the
complexities and mitigation processes associated with procurement process. Managing the
procurement is needed in a project because this report helps to create a relationship with the
outside vendors and the suppliers who provides goods and services for completing the project
successfully. The procurement process of building the new RAH is detailed in this project along
with the complexities that the Project Co. can face while completing the project. This report also
states the mitigation process of those complexities that might arise in the project.
Part A: Procurement process and scope of New Royal Adelaide Hospital
project
The procurement process for the hospital development lacked in the contract
management framework and also in the plans for contract management. SA health had the
responsibility to review the present status of the contracts of the professional services that

CONTRACT AND PROCUREMENT MANAGEMENT
includes to identify quantum, the values and the status of the contracts for the ICT services
(Ottou, Baiden & Nani, 2019). There was also a scope to enhance the practices of contract
management. This was to be done by documenting which officer had responsibility to ensure
compliance with some specific clause with the PPP and also had to provide regular reporting on
the present compliance status. In the project, the risk information was provided to a committee.
Those risk information were to ne improved to have better understanding of nature, the status
and the consequences of the strategic risks and the strategies to mitigate those risks. The project
also needed process improvements to approve the key changes that are related to the risk
information (Jelodar, Yiu & Wilkinson, 2016). This improvement process highlight all the
changes to Committee and helps to ensure the consistency of information those are needed to
support the risk registers.
In the project, the total number of procurement bundles also were not agreed with the
project scope, the project timing and the total cost for the project. Those modifications were also
not discussed and agreed with the Project Co and for that the project was at great risk. The
hospital development project also lacked in the reporting process to the state procurement board.
The Project Co needed to take follow up regarding the procurement program of clinical
equipment but they were not able to do that properly. They were to improve their reporting status
in terms of frequency and in terms of content those were provided to them (Zhang, Hu & Shen,
2017). The reporting status to the committee also lacked in the project. There was no effective
reporting that was to be provided to the Committee regarding the installation process of the
clinical equipment with the time frame that was agreed in the project schedule.
The project report provided agreement for the service provided to the probity assurance
related to the clinical equipment program. But the report that was that was provided did not

CONTRACT AND PROCUREMENT MANAGEMENT
included sufficient details or information related to the nature of services that would be provided
and the extent of service that would be provided. The report also did not mentioned the key
deliverables and the reporting requirements for the process. The information that was provided to
the Committee also did not stated effective report on the status as well as on the key risks of the
project procurement process and the installation process that was stated in the State meeting time
frame and that was agreed in the project agreement. The plans those were made to new RAH ICT
program was to be identified with detailed plan. The plans made had different maturity levels
and also had different completeness (Mosley Jr & Bubshait, 2017). In the project procurement
process, developing as well as implementing the strategic acquisition plan was needed for
ensuring some consistent approach to the procuring ICT service and was to enhance transparency
and also helped for ensuring the resources for the project efficiently and effectively. There were
any areas which needed improvement for managing the arrangements of the contracts for
developing the new RAH procurements for ICT.
During the year 2014 to 2015, there were a number of delayed risks for State those were
emerging from the modifications to facility as well as needed to complete the responsibilities for
the clinical equipment and for the ICT systems (Araújo, Alencar & Miranda, 2017). SA health
was working on the process with the strategies for meeting the contract dates. The project
required a range of contingency actions because of the emerging risks in the project.
With the present business case, understanding the mechanism to establish the monitoring
system of cost are associated with the procurement for the clinical equipment required for the
new RAH development. On enquiring to find out the budget of the operating costs, it was studied
that the cost of whole life project was not been established. The whole life cost in the project was
also not reported and thus the Committee or Operations Board never knew about it (Windapo &

CONTRACT AND PROCUREMENT MANAGEMENT
Adediran, 2017). This would lead to risk in future due to ineffective reporting as well as
ineffective monitoring of the operational costs those were not included in the budget. The review
on the project also stated that the report that was provided to SPB was not at consistent that was
proposed in the strategic Acquisition plan. They were also not able to have effective monitoring
on the progress of procurement project as per it was stated in the plan. It was decided that the
reports were to be provided to SPB on quarterly basis but not such updates were provided to SPB
and was approved by them. Only two reports were provided to SPB, one in September and the
other is April. The format of reporting and the content those were t be included in the report were
also different from that which was to be delivered.
Part B: Project Complexities
The key challenges those were associated in the project were reviewing the impact of
extending the completion date of contractual report by 76 days and that would delay the opening
of hospital. There were also challenges in developing the detailed planning for operational
processes and helps to complete the plans for service delivery (Tanubrata & Gunawan, 2018).
The project also faced challenges in completing refreshed business case for the new RAH project
that included determining as well as incorporating the project impact pf transforming the heath
reforms in business case. There was issue in underlying model care as well as staffing the levels
for new RAH.
The project issued challenges in identifying the risks those were associated with the
implementation of the ICT systems. This included meeting functionality, implementation of
deadlines, meeting the budget targets as well as completing the contingency systems and the
arrangements for the project. There were issues in addressing the risks those were identified with

CONTRACT AND PROCUREMENT MANAGEMENT
the implementation of the enterprise ICT system and that included meeting the functionality,
implanting all the deadlines, and meeting the budget targets for the projects (Mignone et al.,
2016). There was also challenge in completing the contingency system and making arrangements
for the project. Issues in settlement of all the claims those were raised by the Project Co by the
Facilities Management Subcontractor and those claims included modifications those were not
settled in Deed. There were issues addressing all outstanding matters as well as the
recommendations that were made by some independent consultant (Fleming, 2019). Challenges
were faced ensuring the work streams as well as the programs on realistic achievable programs,
responsibilities, interdependencies as well as with timelines in the project.
The project was facing a high risk with respect to its scale, complexity, the cost of the
project and the resources allocated for the project. The project was also at risks to understand the
importance of the project of providing enhanced service to the healthcare service and the
outcome it has on the people of South Australia. The project risks included delay in delivering
the project, cost pressure to completing the project with certain costs, failing to meet the
contractual requirements for the project and the financial exposures of the project (Jahromi,
Mousavifard & Ayoubi, 2018). There was risks in claiming inadequate management of the state
and there were also industrial disputes in completing the project successfully. There were
inadequate delivery for the health enterprise in the ICT systems and uncoordinated relocation for
the new RAH site that is affecting the safe transition of the patients and the services those were
provided. The project also lacked in providing sufficient training to the staffs and was not able to
submit reports on time stating inadequate delivery of the benefits and outcomes of the project
(Rane, Narvel & Bhandarkar, 2019). There was also inadequate delivery of the sustainable model

CONTRACT AND PROCUREMENT MANAGEMENT
and there was misalignment with the changes on the health care policy as well as on the strategic
direction of the project.
With the contractual arrangement, there was risk for sharing the arrangement of the pre-
existing contamination that remediate the cost of the project (Whitaker, 2016). The state was
given responsibility to manage the emerging risk of delay in the project and delays to complete
the responsibilities for the clinical equipment as for the ICT systems. There were new ICT
integration in the project integration and in the delivery framework and in test plan and test
approach of the project. There were inadequate prioritization for the proposed changes and for
the change control in the project. There were no resources capability as well as there was no
resource planning in the project with insufficient planning for local transition. Risk of not
defining as well as not reporting on regular basis in the project would also result in having
misalignment to understand the obligations of the project (Goel, 2016). The project did not have
proper operational leadership as well as management in the project as because there were no
proper integrated program and there were no operational commission in the project. These might
hamper the effectiveness as well as the contribution that is made by the Operations board in the
project.
Part C: Mitigation processes and possible learnings
The mitigation processes those are to be included in the project for completing the project
successfully are:
1. Clarifying the requirements of the project properly before staring the project: Before
starting the project, the project requirement are to be made clear so that it can be completed
within time schedule. After knowing the project requirement, proper documentation is to be done

CONTRACT AND PROCUREMENT MANAGEMENT
so that the project schedule is developed and maintained to complete the project successfully
(Jagtap, Kamble & Raut, 2017). Project feasibility study is to be done and proper meeting are to
be held to get the requirements of the project clear and avoid scoop creep in the project. Project
management methodology is to be used to carry out the project.
2. Involving right team for completing the project: People in the project team might not
be able to complete the project as because they might lack in skills to work with advance
technologies used in the project (Jo, Lee & Pyo, 2018). The project manager in the project must
ensure that the project team members are skilled enough to complete the project. If they are not,
the team members are to be trained properly to complete the project with expertise and to
complete the project on time. The project manager might also ring-fence all the resources that are
needed for the project. Proper resource allocation techniques are to be included in the project
before deploying the project (Marco, 2018). This project manager also should ensure that the
project resources allocated for the project are available all the time to complete the project.
3. Properly mitigating the risks in the project: The project should include risk
transference in the project. This project should include the risk mitigation techniques by which
the project can be successfully completed satisfying the requirements of the customers. The risks
in the project is to be quantified (Bradley, 2016). After quantifying the risks, the project financial
cost in mitigating the project is to be implemented in the project. The ways to manage the project
risks are to be included in the project so that the project gets completed in proper way.
4. Properly communicating and listening properly to all team members: Risks occurs in
the project is the requirements and the objectives of the project are not communicated properly in
the project. If the actions of the management in the project are not communicated properly, then
the project might be a risk of not satisfying the requirements of the project (Ali, 2019).

CONTRACT AND PROCUREMENT MANAGEMENT
Communication is needed in the project to get proper response from the staffs and the clients.
The residual risks in the project are to be identified and prioritized about how risk will be
mitigated in the project.
Conclusion
As per the report, the project of RAH was to be delivered through PPP arrangement. The
health minister was in the procurement process for designing, constructing and financing for the
new hospital development and also provided many facilities to the management services. The
time for project designing and constructing team was 5 years and the operation of developing the
hospital was 30 years. The project includes key contractual terms, the conditions to complete
those contracts and due dates for the contracts. The report above states the procurement plan that
was included in the development process of the new RAH. There were many issues in the
procurement process of the hospital development. The issues included not reporting on time to
the SPB, content of the report also varied and many more issues in the procurement process of
the project.
This report above states the risks those are associated with the procurement process of
developing the RAH project. This report states the procurement process that is been stated in the
sections above. This report describes the mitigation process that could have been taken to
mitigate the procurement issues in the project. This report states all the issues that are in the
procurement process of the RAH and the ways by which they can be mitigated.

CONTRACT AND PROCUREMENT MANAGEMENT
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CONTRACT AND PROCUREMENT MANAGEMENT
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CONTRACT AND PROCUREMENT MANAGEMENT
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