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