Introduction to Contracts and Procurement

Running head: INTRODUCTION TO CONTRACTS AND PROCUREMENT
Introduction to Contracts and Procurement
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1INTRODUCTION TO CONTRACTS AND PROCUREMENT
Executive Summary
This report intends to shed light on the process of procurement within the cannon of project
management through an analysis of the construction of the new Royal Adelaide Hospital in
South Australia. The report begins by providing an outline of the project and the procurement
process used for the completion of the project. The report discusses the various risks like the
financial, constructional and other risks faced by the authorities during the completion of the
project. The report next discusses the best practices like effective collaboration of project
managers, procurement managers and governmental authorities along with the formulation of
cost effective contracts that the authorities could have used for the completion of the project.
The report concludes with a personal reflection wherein I would reflect on the process of
procurement through the perspective of the knowledge that I have gained through the course.

2INTRODUCTION TO CONTRACTS AND PROCUREMENT
Table of Contents
Introduction................................................................................................................................3
NRAH and Procurement............................................................................................................3
Risks and their mitigation..........................................................................................................4
Best practices for procurement and contracts management.......................................................6
Personal Reflection....................................................................................................................7
Conclusion..................................................................................................................................8
References................................................................................................................................10

3INTRODUCTION TO CONTRACTS AND PROCUREMENT
Introduction
The process of procurement has emerged as one of the most important ones within the
framework of the contemporary work and helps the organizations to obtain the kind of
materials or goods that are needed (Wang et al., 2016). As opined by Dave et al. (2016),
procurement is mainly concerned with the process of finding, agreeing as well as acquiring of
products or goods are external agencies. However, there are various factors that the
organizations need to take into effective consideration during such a process like the risks
involved, financial constraints and others (Patrucco, Luzzini & Ronchi, 2016). Roberts and
Siemiatycki (2015) are of the viewpoint that the effectiveness of the process under discussion
here depends to a large extent on the efficiency with which the organization is being able to
mitigate the adverse effects of the risks involved in the process and also address the financial
and other kinds of constraints. This report will shed light on the process of procurement and
its various related aspects in the particular context of the new Royal Adelaide Hospital
(NRAH).
NRAH and Procurement
The NRAH is a part of the initiative of the Australian national government to improve
the health care facilities which are available to the Australian people (Rah.sa.gov.au, 2018).
The total estimated cost of the project is more than $2.4 billion and is the 3rd most expensive
building of the world along with the most expensive building of Australia (News.com.au,
2018). The hospital is known for the technical advancements like the use of robots and others
along with the personalized rooms which it offers to the patients (Abc.net.au, 2018). In this
regard, it needs to be said that the hospital in terms of the life cycle journey is at the growth
stage and it is expected that it would offer better health care services in comparison to the
earlier RAH. However, because of the procurement process which was used the hospital