The New Royal Adelaide Hospital: Design, Development, and Risks

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THE NEW ROYAL ADELAIDE HOSPITAL
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The New Royal Adelaide Hospital
Australia new Royal Adelaide Hospital is one of the largest projects built by the state.
The project was estimated to cost 2.3 billion dollars. Out of the 2.3 billion dollars, 1.85 billion
dollars was to be used in the project design while 417 million dollars was used for additional
development. The new RAH systems were developed to ensure that the state has a manageable
and responsive health system to cater for what was to come. The new RAH was build close to
the South Australian Health and Medical Research Institute and the University. The design of the
new RAH comprised of 800 beds, 40 specialized suites and may more (Morton and Rose, 2008,
p.70).
The new RAH utilizes sophisticated technologies to ensure that food and other health equipment
are efficiently and proficiently transported throughout the health facility by use of robotic
machines.
The new RAH gives a broad scope of complex therapeutic, careful, and analytic, support
management and various vast administrations (Raju et al. 2015, p.307). The new RAH is being
developed on the previous rail yard situated at the edge of Port Road and North Terrace inside
the Adelaide CBD. The site a occupies an area of around 100 000m2, situated close to the
recreation centre terrains and the River Torrens, and has three vehicle passages (Mignone et al.
2016, p.340). The new RAH project is substantively being delivered using an adjusted
foundation PPP model. Under this contract plan, the private sector will configure, develop and
give the scope of offices administration over a specific period. However, the State of Australia
will be responsible for hospital administration as well as providing health equipment to the
hospital. The new RAH project continues through a difficult phase of its life cycle in the design,
development as much as the stages of construction near completion. The SA Health ought to take

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the full advantage of the extended time to ensure that necessary systems and equipment are in
place.
There are noteworthy risks and complexities in the new RAH that will be experienced
ahead of the project completion. There are high possibilities that facility testing and transition
planning will proceed to the new target of November 2016. There several issues that are
involved in the construction of the new RAH. Reviewing the impact of extending contractual
completion dates and prolonging the hospital opening date is one of the key issues. On the other
hand, there have been difficulties in addressing the risks linked with implementing ICT systems.
Addressing key matters and made by the consultant, ensuring clear communication and decision
lines, adequate resourcing and budget monitoring are also some of the issues that need to be
addressed. Additionally, settlement of claims developed by Facilities Management Subcontractor
for modifications and creating detailed operational planning and finishing service delivery plans
are also some issues that require focus and management attention (Casson, Walker and Newland
2002, p.19).
Being the biggest and one of the complex projects in the State, the SA Health has
executed administration arrangements of action to supervise the undertaking and guarantee that
the proposed advantages are conveyed toward the South Australian wellbeing framework. The
administrative structure and arrangement of the project have experienced changes since the
project initiated (Shen Zhang and Zhang 2016, p.376). Critical changes have been made with
respect to the result of surveys done by an autonomous expert. To start with, the project is
supervised by Executive Director, Building Management who is in charge of dealing with the
delivery of the health system based on the design and development stages as per the Project
Agreement. The new RAH has a steering committee which makes decisions and proposals to

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Government on issues having the material effect on the project business case (Dyer Cho and Cgu
2008, p. 71). The members in the steering committee are in charge of observing and giving key
counsel and direction for the construction of the project. The Program Director (PD) is in charge
of the everyday administration and conveyance of the new RAH Program. Further, the Program
Director (PD) reports key parts of the new Royal Adelaide Hospital Program to the Committee
through Monthly Progress Reports. The Project Director is in charge of dealing with the
conveyance of the infrastructure through the design and development stages and the conveyance
of facilities management services delivery as per the Project Agreement (Delmon 2009, p.35).
With regard to its scale, unpredictability, cost and the assigned assets, the new RAH
project is a high-risk project as much as it gives improved and feasible health services
management and significant outcome to the people of Australia. The PPP model used for the
delivery of the project have exchanged enormous risks that are associated with the project to
Project Co including the risks identified in the design and the construction of the new RAH
(Bing et al. 2005, p.32). In this regard, the State was in charge of performing key parts of the
project such as financing works and management of specialists, medical caretakers and other
health professionals. The state is also in charge of delivering clinical equipment, health ICT
systems and several services (Hardcastle et al. 2005, p. 467). A portion of these, especially
clinical equipment (which may require building plan adjustment) and ICT, impact the
development plan.
Appropriately, the Project Agreement on the development of the new RAH was built
upon enormous legally binding commitments that required the State to complete several works
as well as government undertaking within the specified allocated time (Trepte 2007, p.17). The
delay of the project exposed the State to high budgets, adding more expenses to the project.