Contract & Procurement Management for Royal Adelaide Hospital Project

Running head: CONTRACT & PROCUREMENT MANAGEMENT
Contract & Procurement Management (Project Management)
Name of the Student
Name of the University
Author Note

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CONTRACT & PROCUREMENT MANAGEMENT
Introduction
The Royal Adelaide Hospital project is one of the largest social infrastructure projects
that are undertaken by the state. The project is to be built, maintained and financed by making
use of a public, private and partnership arrangement. The procurement contract for the New
Royal Adelaide hospital is true for designing, construction and the maintenance of services for
the new Royal Adelaide Hospital. The project works on the new royal Adelaide Hospital is now
complete and has officially opened for the patients to move in. The life cycle of the project
includes the identification of the audit approach and the scope of the project. After that the
budget and the cost of the project is evaluated in order to set a realistic project budget. The works
of designing along with construction works were under the supervision of the subcontracted
builder (Mignone et al., 2016). However, there were certain issues associated with the project
which mainly arose due to the presence of certain complexities in the project. The project was at
risk due to the delay in the completing components of the clinical equipment information and
communication technology. There were issues with the budget of the project that added to the
complexities in the project. The total nominal budget for the new RAH project is $2.3 billion
(Audit.sa.gov.au, 2018). The budget revision in the project has resulted in a project delay which
is among the key issues of the project. The new Royal Adelaide Hospital project lacked a
contract management framework and contract management plan for clinical equipment
procurement program. There was a scope of enhancing the contract management practices by
ensuring proper monitoring and control along with the documentation of certain specific clauses
of PPP project agreement. Furthermore, the new RAH project had a significant number of
complexities and risks ahead with the completion of the construction. Another significant issue
that the project faced includes failure to meet the PP contractual requirement that resulted in the