Procurement and Tendering Process for The Mater Hospital Expansion

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Construction management 2
Executive summary
The report is based on a case study whereby the New South Wales government will be
responsible for the expansion of a hospital namely, The Mater Hospital. The ministry of health
will appoint a representative who will be tasked of the procurement and tendering process given
a constrained budget. The report begins with an introduction which discusses of the historical
background and the role of government in procurement and tendering in New South Wales. This
is followed by the report which discusses the procurement selection and recommended
partnership study. This is then followed by the risk management and lastly the tendering strategy.
After the report is a detailed a conclusion on what was drawn based on the report. Lastly is the
list of references from where the information was sourced.

Construction management 3
Contents
Introduction.................................................................................................................................................4
Procurement selection and recommended partnership strategy................................................................5
Risk management........................................................................................................................................7
Tendering strategy....................................................................................................................................13
Conclusion.................................................................................................................................................16
References.................................................................................................................................................17

Construction management 4
Introduction
The Australian public sector work for state government is responsible for the procurement of the
services, goods and construction on behalf of the government agencies which in this case is the
health ministry. The Australian government has laws that regulate the procurement process in
order to prevent corruption, waste, embezzlement of funds and waste. The law that governs the
Australian government procurement is the Commonwealth Procurement Rules which is under
the Department of Finance. The NSW Government procurement office was formerly under the
Department of Commerce from 1st April 2003 and was responsible for procuring and tendering
and also enhances cost reduction in the processes. The department of commerce was restructured
in November of 2004 to include the position of the Government Chief Information Office, which
forms part of NSW Procurement. As at July 1st 2009, the Department of commerce was replaced
by the Department of services, technology and administration. However, the name was changed
in 4th of April 2011 to the department of Finance and Services which is currently responsible for
procurement. The roles of the government in procurement are as follows:
 Ensure that government agencies achieve value for money.
 Promotion of competition in procurement process so as to achieve greater efficiency.
 Ensure that the procurement upholds sustainable thus ensuring government money is
used in a manner that is ethical efficient and economical.
 Enhance accountability by reducing corruption and bringing about fairness in
procurement.
 Ensuring that the code of practice for procurement is followed.
However, the process of procurement in Australia has randomly transitioned from being manual
and is now fully digitalized, that is E-procurement and tendering. This will enable and enhance
accountability.