Royal Adelaide Hospital project 2022

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

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PROCUREMENT PROCESS
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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PROCUREMENT PROCESS
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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PROCUREMENT PROCESS
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