Royal Adelaide Hospital project 2022

Specific (Assessment 2 Context) Assessment 2 is about uncovering complexities in the procurement context generally, identifying key issues, looking at leadership, governance and key themes that will allow improved focus, and learning. Assessment 2 is based on understanding the case study and other module Learning Resources. ? Students are encouraged to look at the Essential and Highly Recommended Learning Resources and other public documents associated with the case study. ? However, a careful thorough review of the report is required to understand the contracts and procurement issues that have arisen during the project execution, ongoing risks mitigations and lessons learnt that can be applied to other large infrastructure projects. ? Assessment 2 aims to encourage a deeper understanding of the challenges faced in large complex projects – particularly with procurement methods that involve private-sector finance to deliver complex projects.

Running head: PROCUREMENT PROCESS
New Royal Adelaide Hospital report
Name of the Student
Name of the University
Author’s Note

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Table of Contents
Introduction................................................................................................................................2
Background of project................................................................................................................2
Project procurement strategy and tender evaluation..................................................................3
Identification of key challenges.................................................................................................4
Mitigating strategies...................................................................................................................6
Conclusion..................................................................................................................................8
References..................................................................................................................................9

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Introduction
The project procurement management is the process of keeping the relationships with
the suppliers or external vendors employing to provide the financial or resource related
support to the projects. This management system passes through several processes including
planning as well as selecting, contracting or monitoring and after that closing (Dim &
Ezeabasili, 2015). This report is grounded on the context of new Royal Adelaide Hospital
which measures as the biggest social infrastructure related project. This responsibility of the
project is under the state government. Moreover, the executing process of this project is under
the Public Private Partnership arrangement. But during the implementation of this project, the
project may face such issues regarding governance or other policies and also monetary. For
that, it needs to take the mitigation strategy by which the project can be overcame from these
kind of risks. In this report, it has to describe the procurement strategy of this project of
hospital construction and also identify the key challenges by mitigating them.
Background of project
The context of this project is to construct a hospital named Royal Adelaide Hospital.
The construction, maintenance as well as financial or supplying resources, all of these
activities are conducted under a new kind of arrangement i.e. Public Private Partnership
arrangement (Ibem & Laryea, 2014). The project has made a contract of 35 years with the
health department of state and as a result, the state has provided the sufficient financial
support. The objectives of this project is provide 800 beds as well as inpatient rooms, 40
number of technical suites including operation theatres or procedural rooms and also
biomedical equipment or other kind of clinical apparatus integrating with electronically.
Moreover, within this project, it requires to develop ICT technology through installing lots of
computer devices for smooth communication purposes (Loosemore, 2016). But the project

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have faced some governance related issues or procurement based issues which are necessary
to mitigate within an urgent process for obtaining a successful project.
Project procurement strategy and tender evaluation
This Royal Adelaide Hospital project is a generalized construction based project
which has highly tendency to meet its objectives through such factors including scale as well
as complexity, cost and also assigned resources (Ruparathna & Hewage, 2015). It requires to
run this project successfully because the importance of this project reflects on the field of
health sector in South Australia. During the running time of this project, it requires to take the
proper follow up in specific areas like governance or management process and also decision
making processes. The project needs to run through such processes of project lifecycles
including governance or organizational structure, assurance processes, planning, risk
assessment, financial management, contract management and also procurement.
In a general way, within the theories of the project management, the procurement
process consists of few components such as initiation of request to make the project planning,
development of the project requirements, approval of the request from the higher authority as
well as reviewing the proposal, contract arrangement and after that procurement strategies.
This construction project also has made a planning phase for this project (Jelodar, Yiu &
Wilkinson, 2016). After that, they have made a report which contains the project requirement
including time, cost, technical components etc. After that, this project has approved the
request from the higher authority that means the health department of state. After approving
the permission, this project has reviewed a proposal from this higher authority and made a
contract with the state government which was 35 years contract (Ishii, Takano & Muraki,
2014). After making the contractual arrangements, this project has taken the procurement

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strategies foe gathering resources from the suppliers or external vendors in order to conduct
the project.
This project has execute under such following procurement strategies but in spite of
following these strategies, the project has faced some procurement related risks during the
implementation time (Chong & Preece, 2014). In case contract evaluation, this project also
has made some blunders with the making of contract management based framework.
However, this project did not properly created this framework and also did not provide the
proper effort in planning phase of clinical apparatus based procurement program. By
applying the contractual arrangement, the health department of state has followed their
responsibilities by identifying quantum as well as value or status of the provisions for the
implementation of ICT (Eriksson, 2017). In addition to this, according to contractual
approach, the project has maintained for enhancing the contract management related practices
by using the proper documentation depending on PPP agreement.
Identification of key challenges
As per the analysis of the project procurement approach, the project has confronted to
some procurement related issues which could made a negative reflection within the
procedures of this construction project (Burke & King, 2015). The key challenges of this
project are mentioned as below:
 Firstly, the project has faced an issue in the implementation of the ICT technology
within this hospital construction. However, the ICT technology is the most helpful
technology for communication purposes because the implementation of ICT
technology creates an effective evolution in constructing of this hospital. In this case
scenario, the project was not completed the clinical equipment within the allocated
time frame (Laryea & Ibem, 2014). Moreover, in case of ICT implementation, the

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project did not completed this activity within the deadline. It created a delay in project
schedule. For that, it may create the shortage of the financial budget.
 Another procurement related risk relates that the project manager did not inform to
the Project Co that they have faced a delay issue in implementation of ICT technology
and also making of clinical equipment (Rahmani, Maqsood & Khalfan, 2017).
 The health department of the state did not make properly reporting of the project
progress. However, the project progress defines the checking of the evaluation of the
project whether it is fully correct or not. It can express the overall review of the
project. But, the health department of the state did not make the reporting properly
which has helped to address the risks within the previous projects (Brook, 2016). If
the health department of the state made the reporting properly by addressing the
project risks, therefore it helps for the project manager to provide the special guidance
to that particular section of the project.
 Thirdly, the project has confronted the risk regarding the governance as well as
assurance or management related activities. It needs to make the proper improvement
in that sections (Sanchez et al., 2014). Because according to assurance management,
the project did not completed the implementation activities of the ICT technology
within the allocated deadline.
 The other kind of risk relates with the mismatch of project scope with the Project Co.
because the project co did not agreed with the project procurement factors including
scope as well as time and also cost (Oakland & Marosszeky, 2017). This led to the
extreme risk for this project.
 There occurred a lag within the effective reporting, because the project did not
completed the making of clinical equipment within the time and the project manager

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did not inform this information to the higher authority by reporting, this may cause an
extremely high risk for the project.
 Since, the project did not completed the clinical equipment within the time line and
also has failed to implement the ICT technology within the project, therefore this may
occurred the shortage of budget and also required the additional financial support. But
the project manager did not inform to the health department of the state.
 Since they have failed to finish the project within the timing by implementing ICT
technology and also clinical equipment, therefore the project timing has been
extended another 76 days which led to increase the project budget.
Mitigating strategies
To overcome the project from the following risks, it requires to maintain the
mitigation strategies. The desired mitigating strategies for this project are as follows:
 Before opening the execution stage of the project, it requires to introduce the planning
phase of the project by which the project manager has planned what activities take
place within the execution of the project (Voordijk, Plantinga & Dorée, 2016). During
the planning process, it also requires to make a contract with the suppliers or external
vendors who are accountable for supplying the raw materials for the project.
Similarly, this project required to make proper planning for the ICT technology
implementation and also clinical equipment and also made a contract with the
suppliers or external vendors. In this case, it may be occurred by the suppliers that
they have provided the raw materials for making the clinical equipment and that’s
why, the project has not completed these activities within the deadline. For that, to
overcome this kind of risk, it requires to make proper planning or hire the proper skill

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based employees so that they can able to perform the implementation of ICT
technology within the construction project.
 Another mitigating strategy for curing the risk of improper reporting. The project
manager did not provide the exact information to the higher authority that they have
faced a delay situation in the implementation of ICT technology. Though the project
has already faced a delay condition, therefore it charged the additional project budget
(Jelodar, Yiu & Wilkinson, 2016). This may referred that the project did not maintain
the feasibility of the project. To mitigate this kind of risk, it may provide the proper
reporting so that the higher authority can understand the project situation and helps to
provide the proper financial support to the project for further needs.
 From the description of the identification of project risks, it may discussed that the
project co did not agree with the project procurement factors including the project
scope as well as cost and also project timing. Since, the project has understand by the
Project Co., therefore it may considered as the high range based risk for the project.
To mitigate this kind of risk, it requires to clearly defined to the higher authority about
then project situation regarding the delay condition of the implementation of ICT
technology or clinical equipment so that the higher authority can understand the
project situation and provide the sufficient support as needed by the project.
 Since the project did not completed the implementation of the ICT technology within
the allocated deadline and also making of clinical equipment, therefore the project has
been extended by 76 days from the project schedule. To recover this kind of risk, it
requires to make proper planning for the project so that it does not require any
extension. During the planning phase, it also requires to plan the process of gathering
the materials for implementing ICT technology or making of clinical equipment.

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 The last mitigating strategy is declared as the most significant strategy for this
construction project which is proper management practices. If the project follows the
proper management related rules, therefore this may help for the project to finish the
project activities within the allotted time frame and also assigned budget.
Conclusion
By this conclusion part, it can be finished that the project procurement is the most
important process by which the project execution procedure depends. This project
procurement process passes through such component including initiation of request to make
the project planning, development of the project requirements, approval of the request from
the higher authority as well as reviewing the proposal, contract arrangement and after that
procurement strategies. In this following report, this construction project is based on making
of a hospital and during the executing timing of tis project, the project did not follow the
procurement strategies and for that they have not completed the implementation of ICT
technology or making of clinical equipment within the proper deadline. For that, the project
required an extension of another 76 days from the project schedule and also required some
additional financial support. On other hand, the project manager did not inform properly to
the higher authority about this delay. To obtain the project as successful, it requires to follow
the proper procurement strategies of the project management.

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References
Brook, M. (2016). Estimating and tendering for construction work. Taylor & Francis.
Burke, C., & King, A. (2015). Generating social value through public sector construction
procurement: a study of local authorities and SMEs. In THIRTY-FIRST ANNUAL
CONFERENCE 2015 September 7-9 (Vol. 387, p. 387).
Chong, H. Y., & Preece, C. N. (2014). Improving construction procurement systems using
organizational strategies. Acta Polytechnica Hungarica, 11(1), 5-20.
Dim, N. U., & Ezeabasili, A. C. C. (2015). Strategic supply chain framework as an effective
approach to procurement of public construction projects in Nigeria. International
Journal of Management and Sustainability, 4(7), 163.
Eriksson, P. E. (2017). Procurement strategies for enhancing exploration and exploitation in
construction projects. Journal of Financial Management of Property and
Construction.
Ibem, E. O., & Laryea, S. (2014). Survey of digital technologies in procurement of
construction projects. Automation in Construction, 46, 11-21.
Ishii, N., Takano, Y., & Muraki, M. (2014). An order acceptance strategy under limited
engineering man-hours for cost estimation in Engineering–Procurement–Construction
projects. International Journal of Project Management, 32(3), 519-528.
Jelodar, M. B., Yiu, T. W., & Wilkinson, S. (2016). A conceptualisation of relationship
quality in construction procurement. International Journal of Project
Management, 34(6), 997-1011.

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Jelodar, M. B., Yiu, T. W., & Wilkinson, S. (2016). Relationship-quality judgment model for
construction project procurement: A conjoint measurement. Journal of Construction
Engineering and Management, 142(7), 04016012.
Laryea, S., & Ibem, E. O. (2014). Patterns of Technological Innovation in the use of e-
Procurement in Construction. Journal of information Technology in Construction, 19,
104-125.
Loosemore, M. (2016). Social procurement in UK construction projects. International
journal of project management, 34(2), 133-144.
Oakland, J. S., & Marosszeky, M. (2017). Total construction management: Lean quality in
construction project delivery. Taylor & Francis.
Rahmani, F., Maqsood, T., & Khalfan, M. (2017). An overview of construction procurement
methods in Australia. Engineering, Construction and Architectural Management.
Ruparathna, R., & Hewage, K. (2015). Review of contemporary construction procurement
practices. Journal of management in engineering, 31(3), 04014038.
Sanchez, A. X., Lehtiranta, L., Hampson, K. D., & Kenley, R. (2014). Evaluation framework
for green procurement in road construction. Smart and Sustainable Built Environment.
Voordijk, H., Plantinga, H., & Dorée, A. (2016). Procurement strategy formation:(re-)
designing rail infrastructure project alliances. International journal of managing
projects in business.

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