Procurement and Contracts

Running head: PROCUREMENT AND CONTRACTS
PROCUREMENT AND CONTRACTS
Name of the Student:
Name of the University:
Author Note:

PROCUREMENT AND CONTRACTS1
Answer to Question 1:
One of the greatest social infrastructure projects is the recent Royal Adelaide hospital
that has been taken by the State. The project is equipped with the Public Private Partnership
agreement. The agreement was signed by the South Australia Health Partnership Pty Ltd.
And the State (Ma and Voo, 2014). The hospital focuses to turn the status from the big scale
public private partnership hospital to recent fitness care provider. The procurement of the
project involves many difficulties to manage with respect to aspects like complexity, cost
and so on. The decision-making process and methods are reviewed in a regular manner by
the management that gives a bigger scope of the development of the hospital. The current
development of the project is going well but the development of the hospital is in low rate
because of the delay in expected plan. The design facilities and the construction part is on
time but the delay is occurring due to the getting the clinical apparatus and the Information
Communication Technology. The works that are funded by the external State are also on time
and are not in delay because they are handle by the APTI (Department of Planning, Transport
and Infrastructure). The management failed to co-operate with the employees and also cannot
motivate them to operate effectively and efficiently because the project is multifaceted.
Another reason for the delay is that the hospital achieved the medical facilities and ICT very
lately. The project faced some containment claims which leads the hospital to pay a
settlement amount as well as remediation. The management decided to recover the project by
generating a framework which advice the Royal Adelaide Hospital project to implement in a
new method which will contain zero barriers in the development of the project. The
framework was represented to the committee that defines the role and operation of iPMO
(integrated Programme Management Office). It also contains some risk of the project and
also supplied some mitigating method of the risk which helps to develop the project. The
project was governed with the help of the effective framework. The committee follow the

PROCUREMENT AND CONTRACTS2
framework and considering the framework they edit their operation which help to develop the
project in a well manner. According to the budget analysis, the project cost was not made
properly so it faces an economic disaster. The completion of the project is due to the
framework which helped the committee to take right decision at right place. Another key
feature is that the State accede to pay $68.6 million to the project Co for the claimation deeds
and for the remediation the State pays $23.8 million.
Answer to the Question 2:
There are four types of procurement methods, they are:
Traditional method:
The oldest procurement method is the traditional procurement method. The main
feature of this type of method is that there is a difference between the design and the
construction process. Some other features include: Contractors are hired by the competitive
tendering, the design should be completed before the tendering process and the actual
construction method, Project duration is high, Construction costs is also high and the deign is
controlled but the client.
Design and build method:
In this procurement method, the contractor is responsible for both the construction
and design. The features of this method are: The contractor is appointed by two stage
tendering process (the quality and the competitive unit is preserved), the design is set by the
client and it cannot be edited by the client once it has been handed to the contractor and the
project takes less time as the design and the construction process proceed in parallel way.
Management Contract Method: