PROJ6004 Assessment 1: Contracts and Procurement Case Study Report

This report, prepared for PROJ6004, analyzes the New Royal Adelaide Hospital project as a case study to evaluate contracts and procurement management. The report summarizes key findings, highlighting the challenges of the public-private partnership model, including delays and budget overruns due to inadequate planning and governance structures. It emphasizes the importance of best practices in procurement and contract management, such as supply chain establishment and staff coordination, and the use of technology for document management. The report also defines the roles of the procurement manager and the project manager, emphasizing their responsibilities in supplier evaluation, contract negotiation, and performance monitoring. A reflection journal provides insights into the application of these concepts, underscoring the need for detailed implementation strategies, cost assessments, and performance monitoring systems to enhance project efficiency and success. The report references various sources to support its findings and recommendations.

Running head: PROJECT MANAGEMENT
Project Management
Name of the Student
Name of the University
Author Note

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Table of Contents
Part C:.........................................................................................................................................2
Summary of Key Findings:....................................................................................................2
Best Practices for Procurement and Contract Management:..................................................2
Roles of Procurement and the Project Manager:....................................................................4
Part D:........................................................................................................................................4
Reflection Journal:.................................................................................................................4
References:.................................................................................................................................6

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Part C:
Summary of Key Findings:
In order to summarize the key findings it can be said that the public-private
partnership project is quite helpful for assuring success in the project (Roehrich, Lewis &
George, 2014).
The New Royal Adelaide Hospital project is also based on the public-private
partnership project format. However there were several issues that made the project not so
successful. When analysed properly it was seen that the due to proper planning, the project
was not completed in time. In fact the project was way behind its proposed schedule and
hence the budget has increased as well. Another important strategy to improve this kind of
public-private partnership project is to create a proper structure for the governance which
helps in executing the project successfully (Harrison & Lock, 2017). Although SA Health
developed the structure for the governance, it was not properly implemented. In the context
of these project, the risk management is an important factor which was not properly executed.
Although SA Health made some recommendations about it, there was not enough details in it
like how it should be implemented and it also lacked information about the requirements for
the same.
Best Practices for Procurement and Contract Management:
After a detail assessment has been done on the New Royal Adelaide Hospital project,
some external resources have also been referred to review the best practises that is applicable
to the Procurement and Contract Management.
While recommending best practise regarding the procurement management some
important strategy that should be noted here are supply chain establishment, staff and supply
chain alignment. The supply chain establishment is one of the primary requirement that

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should be ensured before a successful procurement management is developed for the project.
Once the supply chain is developed, the next important step is to create perfect coordination
between the staff and supply chain (Wiengarten et al., 2016). Without coordination between
these two it is not possible to comply the scope of supply chain management with the scope
of the overall project.
There are various strategy that is applicable to contract management. These strategy
improves the efficiency of the contract management which is also closely associated with the
project success. The technology is helping a lot of field to transform and realize the potential
and efficiency. The technology is also applicable in the field of project management,
especially in the context of the contract management. As for the example the project might
consider cloud repository for storing the contract related documents. It not only offers the
benefits for better document accessibility and cost efficiency but also provides digital security
for the document which is an essential requirement in this age of technology (Vähä et al.,
2013). Hence the document are possible to keep safe form the external threats.
Roles of Procurement and the Project Manager:
To deliver a project successfully a procurement manager needs to play some roles in
the context of the project (Coggburn, 2017). The main role of a procurement manager is to
direct the buyers by evaluating the suppliers, interview session with the vendors, supplier
agreement negotiation and by managing the contracts of the vendors and the suppliers (Baily,
2017). The procurement manager must be able to monitor the purchase report, delivery report
and the spend report to determine the performance of a specific type of goods. Another
important role of the procurement manager is hiring new buyers who can improve the
execution of the project (Kastanioti et al., 2013).

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The role of a successful procurement plan is an important aspect of the project.
However the project manager has the most significant role to play here that ensures that the
plan is robust and effective. The project manager has some key roles to serve here in this
context. The project manager is responsible to guide the buyers with proper evaluation and
assessment of the suppliers, vendors through interactive sessions and interview. The project
manager also need to negotiate with the suppliers and manage the contact with the suppliers
and vendors (Martinelli & Milosevic, 2016).
Part D:
Reflection Journal:
After reviewing the case study and several related resources, I have developed several
point of view about the concept. As I have seen that although plan was made such as structure
for the governance, it was not properly implemented, hence I think that in order to execute
the project with success, only plan is not enough for a plan, there should be detailed strategy
to implement the plan properly. Due to proper planning the project was not only delayed, the
budget also increased as well. Hence according to me budget overflow is another major issue
in projects, especially the project that is managed through public partnership relationship.
Apart from these key aspect other important points that is applicable to the
development of effective procurement management strategy are to consider technology in the
field of the business, alliance establishment with some key suppliers, collaborative strategic
sourcing engagement. Another best practise for procurement management is to assess the
overall cost for the project in terms of ownership and the focus should not only be on the
price. Additionally the project manager should have the ability to evaluate various reports
such as purchase report, delivery report and the spend report and based on the assessment
should be able to decide the performance and quality of a specific type of goods. The project

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manager has another important role to play here and that is to hire new buyers for improving
the project execution.
In the public-partnership project, contracts plays an important role and so does the
procurement manager. Hence according to me the project manager plays an important role in
this context. The project manager should have the ability to manage different aspect of the
procurement and contract management such as selecting appropriate contract, negotiating
with the vendors, deciding the quality of the goods supplied and other important aspect as
well. Although technology has an important role to play here to increase the efficiency of the
process, according to me the role of the project manager is more important here to ensure that
the project is executed properly. Another efficient strategy is to implement a performance
monitoring system that will help to track the performance of the contract so that any kind of
delay and issue related to the performance is easily identifiable. This increases the overall
efficiency of the project as well.
According to me automation can also be considered as and effective and efficient
strategy. It makes the management of the contract and the overall project more time efficient
and less error free. Hence it increases the efficiency of the project.

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References:
Baily, P. (2017). Procurement. In Contracting for Project Management (pp. 105-116).
Routledge.
Coggburn, J. D. (2017). Exploring differences in the American states’ procurement
practices. Journal of Public Procurement, 3(1), 3-28.
Harrison, F., & Lock, D. (2017). Advanced project management: a structured approach.
Routledge.
Kastanioti, C., Kontodimopoulos, N., Stasinopoulos, D., Kapetaneas, N., & Polyzos, N.
(2013). Public procurement of health technologies in Greece in an era of economic
crisis. Health policy, 109(1), 7-13.
Martinelli, R. J., & Milosevic, D. Z. (2016). Project management toolbox: tools and
techniques for the practicing project manager. John Wiley & Sons.
Roehrich, J. K., Lewis, M. A., & George, G. (2014). Are public–private partnerships a
healthy option? A systematic literature review. Social Science & Medicine, 113, 110-
119.
Vähä, P., Heikkilä, T., Kilpeläinen, P., Järviluoma, M., & Gambao, E. (2013). Extending
automation of building construction—Survey on potential sensor technologies and
robotic applications. Automation in Construction, 36, 168-178.
Wiengarten, F., Humphreys, P., Gimenez, C., & McIvor, R. (2016). Risk, risk management
practices, and the success of supply chain integration. International Journal of
Production Economics, 171, 361-370.

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