Contracts & Procurement: Vendor Management Analysis - New RAH Case

This case study delves into contracts and procurement, emphasizing the critical role of vendor management and negotiation in achieving successful contract completion. It highlights the importance of building strong relationships with vendors through shared priorities and transparent communication. The analysis draws upon the example of the New Royal Adelaide Hospital (RAH), which initially lacked a robust contract management framework, leading to procurement-related challenges. The study underscores the key areas of accountability for project or procurement managers, including contract type selection, performance measurement, and risk management. Effective vendor management and negotiations are presented as essential for identifying and mitigating procurement risks, ultimately contributing to successful project outcomes. Desklib provides access to this case study and other solved assignments to aid students in their studies.

Running head: CONTRACTS AND PROCUREMENT
Contracts and Procurement
Name of the Student
Name of the University
Author’s Note:

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CONTRACTS AND PROCUREMENT
Table of Contents
1. Vendor Negotiations and Management for Achievement of Successful Completion of
Contract......................................................................................................................................2
2. Identification of Areas of Key Accountability that Project Manager or Procurement
Manager should take for Facilitation of Successful Outcomes with Case Study Example.......3
References..................................................................................................................................4

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CONTRACTS AND PROCUREMENT
1. Vendor Negotiations and Management for Achievement of Successful Completion of
Contract
Vendor management and negotiation enables the project manager for building
relationship with the service providers and suppliers, which would reinforce both the
businesses. This management of vendor is not a negotiation of the lowest possible price,
however is continuously working with the vendor for coming to certain agreements, which
would mutually provide benefits the organizations (Crawford, 2014). The key for succeeding
in vendor management is sharing priorities and information with the vendors. An appropriate
practice of vendor management is responsible for providing only the correct and accurate
information at right time to enable the vendor for serving the needs better.
This vendor management includes limited change in the design, launching of new
product, limited forecast information and relocation and expansion changes. Competition and
competition are being balanced and hence business operations are assisted and supported. A
contract can be completed successfully after proper vendor negotiations and management.
New Royal Adelaide Hospital lacked framework of contract management as well as a plan
for contract management for their respective program for procuring clinical equipment (Niazi
et a., 2016). For this purpose, it is extremely important and significant to ensure effective
vendor negotiations and management. Although, there was scope for enhancing the practices
of contract management after documenting the responsibilities to ensure agreement with
subsequent clauses of projects’ agreements and even by efficiently giving periodical
compliance reporting.
Since new RAH lacked of proper reporting for procurement that is provided to
organizational respective committee about the significant progress made to install bundles of
clinical equipment against the major time frames that were agreed to their program, it is

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CONTRACTS AND PROCUREMENT
extremely vital to ensure that vendor management and negotiations are effective. Another
significant area that is to be considered for a successful contract completion is managing the
risks. The proper vendor management and negotiations would be helping new RAH in
identifying the procurement related risks.
2. Identification of Areas of Key Accountability that Project Manager or Procurement
Manager should take for Facilitation of Successful Outcomes with Case Study Example
The procurement manager or the project manager should consider some of the most
significant and important for the better facilitation of all successful results in a project. A
proper sequence is required to be followed. In the beginning of the contract, the planning
should be done and then contract requirements are sent to the sellers (Masterman &
Masterman, 2013). They are responsible for bidding for bidding for the chance they work in
the project. Contract planning is the place, in which the project manager is planning for all
individual contracts for the project work. Some of the major areas of key accountability that
are required to be considered for successful outcomes in the project. One of the most
significant area of key accountability is selection of type of contract that is being planned for
measuring the performance of contractors, standard documents of company, coordination of
purchasing the lead times with project development schedule and identification of number of
contractors or vendors identified in this process (Kisomi, Solimanpur & Doniavi, 2016). In
the case study of new RAH, the leading cultural change via SA Health system is the main
objective. For this purpose, they have involved few of the most important and significant
areas of key accountability for facilitating successful outcomes.

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CONTRACTS AND PROCUREMENT
References
Crawford, J. K. (2014). Project management maturity model. Auerbach Publications.
Kisomi, M. S., Solimanpur, M., & Doniavi, A. (2016). An integrated supply chain
configuration model and procurement management under uncertainty: a set-based
robust optimization methodology. Applied Mathematical Modelling, 40(17-18), 7928-
7947.
Masterman, J., & Masterman, J. W. (2013). An introduction to building procurement systems.
Routledge.
Niazi, M., Mahmood, S., Alshayeb, M., Riaz, M. R., Faisal, K., Cerpa, N., ... & Richardson,
I. (2016). Challenges of project management in global software development: A
client-vendor analysis. Information and Software Technology, 80, 1-19.