Contracts & Procurements

Running Head: Contracts & Procurements
Contracts & Procurements
A Case Study Report & Reflection

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Table of Content
Part A-Introduction............................................................................................................................................ 2
Part B-Key Risks, Mitigation and Possible learning’s.........................................................................3
Key Risks............................................................................................................................................................ 3
Risk Mitigation................................................................................................................................................. 4
Key Learning’s................................................................................................................................................. 5
Part C-Summary of Key findings and best practices in contract and procurement
managements....................................................................................................................................................... 6
Summary of the Key findings.................................................................................................................... 6
Best Practices in Procurement and Contract Management.........................................................6
Part D-Reflection................................................................................................................................................. 7
References.............................................................................................................................................................. 9

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Part A-Introduction
Procurement and contracts are an integral part of successful project management and it
is one of the most focussed areas for the management of the business organization.
Some of the integral part of the process attached with the project management are
planning for purchase and acquisition, request for proposal, vendor selection, contract
administration and contract closure. The report here will understand the process of
contract and procurement with the help of a case study based on the new Royal
Adelaide Hospital, which is one of the largest social infrastructure project undertaken
by the state. The Public Private Partnership (PPP) agreement is focussed to build,
maintain, finance and facilitate non-medical and equipment services to the hospital. The
hospital is laced with advanced technology and is seen as one of the most celebrated
hospital in South of Australia. An agreement for 35 years has been signed between the
state and the most preferred PPP proponent, SA health partnership Pty ltd. The project
which has an estimated projected cost at US $ 1.85 Billion per year has the following
features in the contract(Grimsey & Lewis, 2017).
 Provision for 800 beds which comprise of 700 multi-day beds and 100 same day
beds.
 Standardization in the single impatient rooms with individual rooms.
 In total 40 Technical suites to be created on the likes of operation rooms,
procedural suites.
 Updating the technology to ensure the suppliers in the hospital are transported
safely, effectively and efficiently.
In order to complete the project in the stipulated time, the most important thing here is
establishment of the effective and efficient management oversight process, decision
making system in place and a regularly reviewed and revised throughout the tenure of
the project. The review of the development of the project is an on-going process and the
project has been broken down into several stages and milestones. Some of the
important are of focus include:
 Material indent and procurement
 Management of risk

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 Management and administration of contract
 Planning of business
 Process of assurance
 Organizational structure and project governance (Saunders & Carter, 2017).
At the very present, the design and construction work is seen by the subcontracted
builder and maximum of the design work is in the completion stage, on the other hand
the construction work is going in full swing. The work which is funded by the state
department of planning, transport and infrastructure has to go into the progress state.
An internal audit on the completion of project undertaken by the SA health during
2014-15 reflected that the work is running behind the schedule and the earlier
completion date of 2016 has to be extended. The delay in the project has put an
additional expenditure on both the public and private partnership and the stakeholders
of the project are running behind to ensure no further delay in the project completion. It
was identified that plethora of areas such as Program governance, assurance,
management, reporting system and processes require a lot of improvement to expedite
the process(Walker, 2017).
A lot of risk was identified with the project, and in order to tackle the same a team was
created to monitor and have an overview of the project contingency management
framework, revisiting reporting on the status of clinical equipment procurement,
enhanced risk, budgetary and financial management risks. At the same point in time not
all the projections and forecasts linked to the project had a significant variation which
resulted in the increase in the cost of project. The report in the next section will focus on
various key risks associated with the project; risk mitigation and the possible learning’s
one can derive from the grand project. Towards the end, a summary of the key findings
will be presented along with the best possible practices in procurement and contract
management (Redwood et. al., 2017).
Part B-Key Risks, Mitigation and Possible learning’s
Key Risks
 The new RAH project is under a lot of risks related to its scale, complexity, cost
and the resources allocated to the project.