PROJ 6004 Contracts and Procurement

Running head: CONTRACTS AND PROCUREMENT
Contracts and Procurement
Name of the Student
Name of the University
Author note

1CONTRACTS AND PROCUREMENT
Table of Contents
Part 1: Introduction..........................................................................................................................2
Part 2: Identification of the issues and risks associated with new Royal Adelaide Hospital..........3
Part 3: Recommendations for contracts and procurement management.........................................4
Part 4: Summary of common themes...............................................................................................6
Part 5: Reflection.............................................................................................................................8
References......................................................................................................................................10

2CONTRACTS AND PROCUREMENT
Part 1: Introduction
The functions of a tangible contract management help in management of obligations in an
effective way. It saves times and efforts of both parties. On the other hand, contracts can dictate
the aspects of the key business strategies. There are several contractual parties seen to spend time
as well as resources. The documentation of procurement provides a significant input as well as
output procedures in order to ensure fair bidding as well as review the proposals of suppliers and
making sure accountability as well as performance. Present study deals with the importance of
contracts and procurement in mitigating risks associated with Royal Adelaide Hospital. In
addition, the best possible practice contract and procurement process for the organization and
responsibilities of procurement manager for satisfaction and successful project are explained in
the paper.
Procurement planning as well as adoption of effective procurement practices leads to
develop better value for money consistently. It also assists in delivering higher quality project
and minimized risks for agency. Procurement planning engages analyzing the process of supply
market working and evaluating the risks and defining the best practices as procurement strategy
in order to meet demands of the project. In the present study, development of new Royal
Adelaide Hospital has been selected as case study project, where a Public Private Partnership
arrangement has been developed between the State Government and SA Health Partnership Pty
Ltd. In this situation, it becomes vital to define the risks associated with the project and take
effective contract and procurement management for the project.

3CONTRACTS AND PROCUREMENT
Part 2: Identification of the issues and risks associated with new Royal Adelaide Hospital
Hastie, Sutrisna and Egbu (2017) stated that a project with substantial procurement
element needs vital efforts by the project manage in order to ensure that contracts encounter the
demands as well as constraints of the project plan. The contracting approach based on
performance was pioneered by the US defence industry that has been adopted across the world.
Effective implementation of contracts and procurement improves reliability, availability and
certainty of delivery. It also helps to minimize cost of ownership. The purpose of the project is
developing, maintaining, financed and non-medical services as well as equipment used
organization using a Public Private Partnership arrangement. The collaboration has been
developed between the State and SA Health Partnership Private Limited as the chosen PPP
proponent (Anthopoulos et al., 2016). The total value of the project is $1.85 billion
approximately. However, the arrangements of project assurance are not completely understood
by the Committee along with the governance committee. It creates risks in the project that results
not delivering the project as planned. In this perspective, it is required to develop appropriate and
effective contracts and procurement plan for Royal Adelaide Hospital that will be useful in
delivering the project successfully.
Risk information provided to the specific Committee needed enhancement to provide a
proper understanding and take effective strategies to mitigate them (Mesa, Molenaar & Alarcón,
2016). There was a lack of suitable and effective contract management framework as well as
plans for clinical procurement. SA health follows the process of reviewing the status of
professional services contracts consisting of identification of quantum, status as well as value of
the contracts for ICT services’ vision. There was an opportunity for improving contract
management practices through documentation that an officer had specific responsibility to make