PROJ6004 - Contract & Procurement Management: Adelaide Hospital Case

This case study analyzes the contract and procurement management challenges encountered during the New Royal Adelaide Hospital project. It highlights the absence of an effective contract management framework, leading to increased maverick buying, supply risk, and unclear spend visibility. The project also suffered from delays, resulting in cost overruns, time consumption, and disputes, which could have been mitigated through strategic planning, technology utilization, and accurate cost estimation. Furthermore, changes in governance impacted project management, affecting the quality of deliverables and creating difficulties in adapting to the new structure. The study emphasizes the importance of informing management members about governance changes to avoid negative impacts. Desklib offers a platform for students to access this case study and other solved assignments for academic support.

Running head: CONTRACT AND PROCUREMENT MANAGEMENT
Contract and procurement management
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Running head: CONTRACT AND PROCUREMENT MANAGEMENT
4.3 The absence of an effective contract management framework has been observed during the
project. The contract management framework which means the execution and monitoring of
contract in order to maximize the financial gain from the project as well as maximizing the
operational performance during the project were not present during the running of project
(Kerzner & Kerzner, 2017).
Impact: The absence of the effective framework of contract management increased the maverick
buying and supply risk. At the same time, it decreased the spend leverage. Spend visibility was
unclear because of lack of effective contract management framework.
Mitigation: The issues can be mitigated by implementing a proper framework of contract
management which will maximize the operational performance.
Possible learning: An effective contract management framework is thus an integral part of
contract and procurement management.
4.4 The delay in completion of the project was observed as one of the key issue. Compared to the
planned schedule of completing the project which led to the dismissal Judith Carr, who was the
Project director of RAH and Deputy Simon Morony replaced his position (Harri & McCaffer,
2013).
Impact: The effects of the project delay were highly significant. Due to the delay of the project,
cost of the project was overruned. At the same time more time was consumed unnecessarily.
Moreover, several disputes have been reported.
Mitigation: The project delay could have been avoided by an effective strategic plan, extensive
use of technology and appropriate cost estimation primarily.

Running head: CONTRACT AND PROCUREMENT MANAGEMENT
Possible learning: in order to mitigate the issues that cause the delay of project, the major causes
behind the delay need to be studied.
4.5 Change governance had a crucial influence on the project management. As the management
structure changed completely, the overall management restructured again, which created
difficulties in the middle of the project. However the changed governance assured quality of the
deliverables (Kerzner & Kerzner, 2017).
Impact: one of the major impacts of the change of the governance was it assured quality of the
deliverables during the project. At the same time, it also had negative impact on the contract and
procurement management as it created difficulties cope with the changed governance.
Mitigation: the negative effect of the governance change could have been mitigated by making
the members of management aware of the changes before changing the governance structure.
Possible learning: in order to avoid the negative impacts of the governance change, the members
of the management should be aware of the new structure of the governance, before it changes.

Running head: CONTRACT AND PROCUREMENT MANAGEMENT
References
Harris, F., & McCaffer, R. (2013). Modern construction management. John Wiley & Sons.
Kerzner, H., & Kerzner, H. R. (2017). Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.