Contracts and Procurement in Adelaide Oval Redevelopment

This report provides an overview of the contract and procurement process in the Adelaide Oval redevelopment project. It discusses the key issues, risks, leadership, and governance aspects of the project. It also explores the mitigation strategies and possible learnings from the project.

Contracts and
Procurement

Contents
INTRODUCTION.....................................................................................................................................3
PART A......................................................................................................................................................3
PART B......................................................................................................................................................5
PART C......................................................................................................................................................7
CONCLUSION..........................................................................................................................................9
REFRENCES...........................................................................................................................................10

INTRODUCTION
The financial definition of procurement and contract can be defined as a written agreement
between a buyer and seller for transacting goods or services in exchange of a payment. A
contract is usually accepted mutually which vines to parties to the obligations mentioned therein
within the legal boundaries. Procurement is the act of requiring goods, works are services from
an outside external source which may comprise off companies and public agencies (Montalbán-
Domingo, and et. al., 2019). This report is based on the case study of Adelaide Oval
redevelopment, 2015. It has been prepared in three parts viz. Part A includes introduction,
identification of project procurement components and evaluation of tender, part B is about
complexities, project environment and organization, leadership and governance along with their
outcomes and the final part C comprises of ways to mitigate issues, understanding of changes
enrolls and responsibilities, dependencies and common themes.
PART A
Introduction and summary of the case study
This case study is based on Adelaide Oval Redevelopment and Management Act, 2011.
The findings of the case has been taken from the auditor report provided by the appointed
auditor. Audrey the general has conducted the audit of the financial operations of public
authorities which were involved in the Adelaide oval redevelopment project. These agencies are
Department of Planning, Transport and Infrastructure, the Department of Treasury and Finance
and the South Australian government financing authority. Public money of $535 million was
made available for the above mentioned project to be used by the public authorities mentioned
above. After extensive examination of financial records and statements of these agencies, the
auditor came to a conclusion that only DPTI has utilized the funds for the purpose as a specified
by the government. The practical completion of the project was done in the year March 2014.
These stadium was fully handed over to the Adelaide over SMA limited to operate on 24th
March 2014 (Case study of the project, 2021).
According to the provisions of Adelaide oval redevelopment and management act 2011,
The funds which are made available from the public money has to be utilized only for the
specified project and ancillary activities for the completion of such project. But, such agencies

have not expanded the money within the limits and according to the directions given by the
government for this purpose. DPTI applied the money to some extent but not completely for the
project and also made the payment on its discrepancies. DPTI was the only entity that incurred
material expenditure from public menus during the period from 1st January 2015 to 30th June
2015. However, it must be noted that all the agencies have utilized the front within the limit as
provided by the government.
Project procurement components
Procurement is a process which comprises of number of steps to be followed by the
parties involved in the transaction. Some of the components of procurement in the Adelaide oval
redevelopment project have been explained below:
 Initiating a request- Australian government has chosen some of the authorities for the
redevelopment of project. At this is a stage, the parties for this project were approached
after signing a joint venture contract between Australian cricket club and Australian
football club. The request was to build a place in the form of Adelaide’s oval
redevelopment (Ottou, Baiden & Nani, 2020).
 Development of requirements- this project was given to the above mentioned public
agencies by executing a procurement contract which legally binds the parties to abide by
the terms and conditions. In addition to this, there are certain limitations on the
application of Public money so provided by the government for this project. The time for
this project was also specified apart from the budget. Furthermore, every task of project
required advanced technology for building it.
 Request approval- after initiating the request, government approved the tender to three
companies chosen for this project. It was also provided that not a single money of the
public money should be used in any task other than what is required for this project.
 Purchasing authority- the authority for purchasing the raw materials for this project was
in the hands of the above mentioned public agencies. They had the power to enter into
contract with some other companies for the supply of required materials in completion of
the project.
 Bid or proposal review- the proposal was reviewed by the competent authority who is
independent of biases and judgments.

 Contract management responsibility- each of the above mentioned departments were
given their responsibilities. For example, AOSMA was given the responsibility to build a
hotel in this project. It was done for timely completion of the given task.
Evaluation of tender
It is important to evaluate the tender on the bases of number of aspects which helps in
determining whether or not the project has been done according to the specified directions
(Cheaitou, Larbi & Al Housani, 2019). It has been evaluated on the basis of the following
factors:
 Amount- The total amount given was $535 million for the redevelopment work. The
money actually extended by the public agencies state to $534.1 million.
 Relevant experience- DPTI, SAFA and DTF already established many projects including
infrastructure for in Australia. Thus, it is clear that these three agencies were having
strong experience and were capable of applying the funds efficiently.
 Understanding of the requirements- the only requirement of this project was to utilize the
public money for the given project only. About from DPTI, I got two agencies filled to
apply the money for the Adelaide project. Auditor general provided that DPTI used it
appropriately and in the right manner but also shown its discrepancies in this matter.
 Past performance- from the government data, these three agencies have contributed
hugely in the development of various facilities for the public. Hence, they all have good
track record of performance in the previous years.
 Technical skills- DPTI and other two agencies used advanced technology which are cost
effective as well as environment friendly.
 Resource availability- apart from the financial resources, deal with requirements of non-
financial resources for the completion of projects. However the audit report disclosed a
scenario different from what the government has expected.
 Management skills and systems- Only DTPI has proofed great management skills and
implemented effective systems for managing the whole work which was allotted to it.
PART B
Key issues/risks

Risks are unavoidable factors in a project. It creates difficulties in meeting the deadlines
of the task. The parties involved in this project have identified some of the risks which are as
follows:
 The redevelopment involved replacement of existing members area stands with a new
western grandstand to increase the capacity of Adelaide over to 36,000. Birthday
government wanted to retain the heritage elements of the stance hence there was risk
during the demolition process (Key issues or risks in Adelaide Oval project, 2021).
 The place was to redevelop therefore, address of tripping of the walls was there which
was low to high.
 There was a risk of running short of the funds provided by the government for the given
project.
 Legal risk was also there because of not utilizing the public money according to the
provisions of the Adelaide oval redevelopment and management act.
 Some of the accounting standards were not followed by all the three public agencies
which was a huge risk for the financial activities.
Project environment and organization aspects
The meaning of Adelaide oval development project was to create a cutting edge design
and technology masterpiece for bringing more people into this stadium. The architecture of the
stadium environment is something which provides a quality of space, connecting to the public
realm for and drink and do the internal stadium. All these were included for enhancing the
experience of visitors. The seats were installed having great comfort and accident sightliness for
watching the game (Rincon, 2018). It was constructed in such a manner so that local national and
international communities can visit these stadium. All the features have been included with great
structural and building services engineering.
From the organizational aspects, it was built in a manner to attract tourists from different
countries in the world in order to have more revenue and profit. It was created as a unique selling
point among all the places that a visitor can visit. It has been given and iconic fee by taking into
consideration the modern as well as historical touches of this place (Ferkins, Shilbury &
O’Boyle, (2018).

Leadership and governance
Leadership refers to giving guidance to the team members for their better performance
and enhanced effectiveness. Governance can be defined as compliance with the legislation that
are applicable to a project. According to the data, Adelaide oval redevelopment is according to
the state government strategy which is to give false facility to the visitors. The public spaces in
this stadium has been built my combining modern technicalities and the venue. In addition to
this, one can access to CBD location with strategic linkages to public transport and services that
enhance the public's experience and enjoyment of attending recreational, social and
entertainment events at the oval (Parkin, & Hardcastle, 2019). The leader of this project also
formulated a comprehensive environmental management plan for undertaking the activities
during construction in such a manner that do not affect the environment adversely or the white
indigenous and non-indigenous heritage, local and neighboring communities and construction
workers.
Influence of leadership and governance
One of the biggest influence by constructing Adelaide over stadium increased sporting
and entertainment activities which led to higher generation of income. It is a masterpiece created
by the Australian government and people from different countries in the world are visiting to this
place to explore it. It has pumped the economic development in the country. Along with this,
more jobs work created. This mustard please has been appreciated by number of successful
people.
PART C
Key mitigation and possible learnings
It is important to find the solution for reducing the adverse effect of lists that have been
identified above. Also, it is a prime significance to take lessons from the failures all mistakes
occurred during the completion of the project. The ways through which risks reduced have been
explained below:
 In order to reduce the risk of demolition, the authorities used advance technology
vibrations techniques were used for keeping the heritage elements safe. With the help of

innovative vibrating technology, the risk was reduced to a great extent. No harm was
caused to the local Heritage (Edwards & et. al.).
 For mitigating the risk of tripping of walls, the construction was done in a way by
evacuating the whole place so that workers and other people can be saved from any
hazardous activity. Furthermore, some good materials have been used for enhancing the
safety of the building.
 Financial risks the prime ones which should be resolved with effective solution and
lessons must be taken from the mistakes committed in the past. It should follow the
accounting standards provided by the act. This ensures level of compliance and effective
appropriation of the funds provided by the government.
 Whenever a new project is started, the party so involved should abide by the legislation
that are applicable for this specific project. It is advisable for the public agencies to
comply with the regulatory frameworks and laws that are applicable with regard to the
environment, finance, accounting, human resource and many other departments which
are required for the particular work (Verschoor, 2020).
 Accounting standard board has formulated number of standards which should be
followed according to their applicability. In the case of this project, all the three agencies
for failed to follow accounting standards which caused financial risks
Changes to roles and responsibilities
Every department was given their thought of responsibilities by the government for the
completion of this project. However, there were many problems and lists involved which
raised and requirement for making changes in the roles and responsibilities. For example,
when ASFA was failed to utilize the funds appropriately, it should have changed the finance
manager who was under the responsibility to allocate the financial resources. Apart from this,
it is important to assess the roles and responsibilities of the existing people from time to time
from including potential people into the team who can provide better leadership and guidance
to other members.
Change this to procurement brief or specification, scope and procurement process
Every project needs to be completed by meeting and contacting different suppliers of the
material. But if the parties is involved in the project fails to procure raw materials of the same

quality and within the time limit for this project then it should makes changes in the
specifications. Also, by understanding the importance of keeping heritage intact, a clause in
the contract must be entered regarding the same. If discover work is to be shortened or
broaden then it must be done. For example, meeting with the accounting standards or
utilizing the funds in different areas for developing Adelaide oval, the public agencies should
have increased the score of their work according to the need.
Dependencies and common themes
The project was dependent on number of people for its completion such as the
government who allotted funds, suppliers, engineers, workers, top executives from the
departments who had this project and community. Society and community played a great role
in constructing in this stadium. They supported its development. The common theme of
Adelaide oval project was to provide world class facilities to the visitors. In addition to this,
it played number of obligations on the Department of ministries over and taking this project.
However, procurement and application of public money can be another theme of this project.
CONCLUSION
From the above report it can be concluded, that contract and procurement are huge when
it comes to developing public place. Constructing Adelaide oval stadium in Australia was full of
challenges and all the three agencies that were involved in its redevelopment did not meet with
the requirements completely. The public money provided by the government was supposed to be
utilized only for the development of the stadium. But from the auditor report, it was found that
only DPTI has incurred material expenditures for the purpose which the money was to be
utilized. Furthermore, it was provided that accounting standards were not complied with by these
departments which is one of the major aspects in public infrastructure.

REFRENCES
Books & Journals:
Montalbán-Domingo, L., and et. al., (2019). Social sustainability in delivery and procurement of
public construction contracts. Journal of management in engineering, 35(2), 04018065.
Ottou, J. A., Baiden, B. K., & Nani, G. (2020). Six Sigma Project Procurement application in
public procurement. International Journal of Quality & Reliability Management.
Cheaitou, A., Larbi, R., & Al Housani, B. (2019). Decision making framework for tender
evaluation and contractor selection in public organizations with risk considerations. Socio-
Economic Planning Sciences, 68, 100620.
Rincon, I. D. (2018). A Framework for Understanding the Role of Project Culture for
Organizational Project Maturity. In Developing Organizational Maturity for Effective Project
Management (pp. 154-168). IGI Global.
Ferkins, L., Shilbury, D., & O’Boyle, I. (2018). Leadership in governance: Exploring collective
board leadership in sport governance systems. Sport Management Review, 21(3), 221-231.
Parkin, A., & Hardcastle, L. (2019). The Pittsburgh renaissance and the future of
Adelaide. Urban Policy and Research, 37(3), 294-309.
Edwards, M. R., & et. al., Mitigating earthquake risk in Australia.
Verschoor, S. (2020). Preparing Adelaide for the Next Crisis. CTBUH Journal, (4).
Online:
Case study of the project. 2021. [Online]. Available through:
https://file.globalacademicresearch.com/projectfiles/internal_cust_document/
MainCase_826088322_1617604868.pdf.
Key issues or risks in Adelaide Oval project. 2021. [Online]. Available through:
https://acaa.net.au/wp-content/uploads/2020/02/Adelaide-Oval-Redevelopment.pdf.