Project Report on New Royal Adelaide Hospital Construction Project

This report presents a comprehensive business case analysis of the New Royal Adelaide Hospital project. It begins with an executive summary and table of contents, followed by an introduction outlining the project's background, including its inception in 2007 and completion in 2017, with a total cost of over A$2 billion. The report details project finance, financial appraisal, and a cost-benefit analysis, as well as defining the project's scope, objectives, and anticipated outcomes. It identifies key stakeholders, project requirements, and potential risks, including design, cost overruns, and health and safety concerns. The report also includes an environmental analysis and discusses project organization and governance. Furthermore, it provides an in-depth analysis of the project's cost, funding sources, and benefits, concluding with an assessment of its overall success and impact on healthcare services in Adelaide. The project was a part of the reform program undertaken to ensure that the state is having a sustainable and a responsive healthcare system for its peoples which will be very much beneficial for the future cases.

Running head: PROJECT REPORT OF NEW ROYAL ADELAIDE HOSPITAL
Project Report of New Royal Adelaide Hospital
Name of the Student
Name of the University
Author Note

1PROJECT REPORT OF NEW ROYAL ADELAIDE HOSPITAL
Executive Summary:
The main aim of this report is to providing business case report on construction project of the
new Royal Adelaide Hospital of Australia. This project of new Royal Adelaide Hospital
stated in 2007 and completed on 2017. During this project time period various of problems
has been faced by this project and this problems and overall execution of this project has been
described through this business case report of new Royal Adelaide Hospital. In this business
case report first the finance regarding the project has been discussed. With the finance report
also the definition of the project has been also described in this report. Environmental
analysis is one of the most important aspects of the project which has been done within this
report. Further this report has also discussion regarding risks that are related with this project
and project organization.

2PROJECT REPORT OF NEW ROYAL ADELAIDE HOSPITAL
Table of Contents
Introduction:.............................................................................................................................................................4
Project Finance:........................................................................................................................................................4
Financial Appraisal:............................................................................................................................................5
Cost Benefit of the Project:.................................................................................................................................5
Definition of the Project:..........................................................................................................................................5
Background Information of the Project:..............................................................................................................5
Objective of this Project:.....................................................................................................................................6
Benefit and Limitation of the Project:.................................................................................................................6
Scope of the Project:............................................................................................................................................7
Anticipated Outcomes:........................................................................................................................................7
Project Stakeholders:...........................................................................................................................................7
Project Checklist:................................................................................................................................................8
Environmental Analysis of the Project:...................................................................................................................8
Purpose of the Environmental analysis:..............................................................................................................8
Description of the Environment Analysis:..........................................................................................................8
Risks Regarding the Project:....................................................................................................................................9
Project Organization:..............................................................................................................................................10
Project Governance:..........................................................................................................................................10
Project Reporting:..............................................................................................................................................11
Conclusion:............................................................................................................................................................11
References:.............................................................................................................................................................13

3PROJECT REPORT OF NEW ROYAL ADELAIDE HOSPITAL
Introduction:
The new Royal Adelaide Hospital is currently the largest hospital of Adelaide and is
one of the finest hospital of Australia. Currently this hospital is providing tertiary type of
healthcare services to southern region of Australia. With that it also provides secondary care
clinical type of services to the residents of Adelaide city and inner suburbs of this city. The
new Royal Adelaide Hospital is the newer version of old Royal Adelaide Hospital. The
construction of the new Royal Adelaide Hospital was started in the year of 2007 (Snell and
Grave 2018). This construction project has taken approximately ten years to complete and
finally completed in September of 2017. Approximately more than A$2 billion dollar was
used for developing this hospital from the scratch which was actually a huge cost.
In the current context a business case template will be developed regarding the
construction project of new Royal Adelaide Hospital. For the development of this business
case template first financial statement will be provided in this document for the development
of new Royal Adelaide Hospital. Following the financial plan of new Royal Adelaide
Hospital definition of the project will be described within this report. Project organization
related information will be discussed in the further section of this business case report. Lastly
in this report the success of this report will be measured.
Project:
Business Need:
The current business need of this project is creating a hospital within Adelaide City
which will provide advanced medical services to its peoples and will create sustainable
healthcare system.

4PROJECT REPORT OF NEW ROYAL ADELAIDE HOSPITAL
Project Scope:
Currently the project is capable of delivering a high sustainable medical facilities to
the peoples of Australia and with that through this project advanced medical facilities can be
provided to the patients which includes surgery related services and advanced Medicare
services to the patients. Through this project an innovative design is also given for the new
Royal Adelaide Hospital.
Project Background:
The current project of the new Royal Adelaide Hospital is a hospital construction
project in which was executed within the Adelaide Park Lands. The site of the project is
located in the west of the Morphett Street on the north terrace (Surman et al. 2018). The total
cost of the new Royal Adelaide Hospital project was around 1.8 billion Australian dollars
initially. Though this was the initial budget of the project, due to various of internal reasons
and problems the project got delayed by a huge margin and for this the budget of the project
increased automatically. The construction design of the project followed in such a way that it
was able to reduce the greenhouse gas emissions while compared with the same kind of
hospitals. This project was started in 2007 and this project was completed in 2017. This
project actually a part of the reform program which was undertaken to ensure that the state is
having a sustainable and a responsive healthcare system for its peoples which will be very
much beneficial for the future cases (Li et al. 2018). This project has replaced the old Royal
Adelaide Hospital and provided extensive range of support of the complex medical services
which includes surgical services, support services and some complex medical services.
Anticipated Outcomes:
From the project it has been assumed that high level of health care services will be
provided to the patients. Also with that various of other health care facilities can also be

5PROJECT REPORT OF NEW ROYAL ADELAIDE HOSPITAL
provided through this project. In this project it is also analysed that the new Royal Adelaide
Hospital only produces half of the CO2 compared with any other hospital of this level
(Sigarchian, Malmquist and Martin 2018). Thus this project will also provide the solution for
the new projects so that the new projects also becomes environment friendly like the new
Royal Adelaide Hospital.
Key Project Stakeholders:
From a brief analysis of the project it has been determined that the stakeholder of the
project are the government of Australia, SA Health Partnership Pty Ltd, project group, project
managers, steering committee of new Royal Adelaide Hospital and members of new Royal
Adelaide Hospital finance sub-committee. Among these stakeholders the main stakeholders
of this project is the government of Australia and the SA Health Partnership Pty Ltd. As this
project was a PPP project the SA Health Partnership Pty Ltd was having an important role to
play (Delmon 2017).
Project Requirement:
Statement of Requirements:
The main requirement or the conditions of the projects are that it need to be
completed under a PPP agreement. This project also need to provide high class surgery
specialities after the completion of the project. Also, this project must be capable of
implementing ICT services in the healthcare department. And in this aspect the most
important requirements of this project are completion of the project under the mentioned
deadline and budget.
Identification of Options to Meet Requirements:
To meet the project requirement first of all the requirement of the project need to be
understood carefully by the members of project team. Completing projects within provided

6PROJECT REPORT OF NEW ROYAL ADELAIDE HOSPITAL
budget and deadline is challenging for almost every projects. In this aspects to meet the
deadline of the project all the stakeholders of the project need to cooperate to the project
actively also any type of issues within the project need to be solved quickly. The budget of
the project can be make minimal by optimizing resource allocation of the project and with
that projects also need to be within specified time to make the budget minimal. Also to make
this project a successful PPP construction project the government and the private party must
have proper communication and understanding among them.
Risk management:
Risk Assessment:
The main aim of the risk assessment is providing brief understanding of the risks that
are related with the current project of new Royal Adelaide Hospital. It has been analysed that
there can be various type of risks regarding the project of new Royal Adelaide Hospital and
due to this type of risks mainly schedule of the project and the cost of the project increases
(Kliem and Ludin 2019). As this project was a construction related project the main risks that
are related with the project are the design related risks, law changes risks, cost overrun risks,
changes in the project scope regarding risks, health and safety related risks, project time
overrun related risks and weather related risks.
Mitigation:
All the above identified risks are very much common for the construction regarding
projects. In the project of new Royal Adelaide Hospital the main issues that has been faced
by the project are the budget overrun related issues, health and safety related issues and the
project time overrun related issues. The timeline of the project overrun due to the reason that
there was confusion among the stakeholders of the projects (Cagliano, Grimaldi and Rafele
2015). The health and safety related issues was also there as one of the worker of this project

7PROJECT REPORT OF NEW ROYAL ADELAIDE HOSPITAL
was killed in this project as he was having a fatal head injury due to an accident with scissor
lift. The most important risk which was the project budget overrun risk is occurred due to the
fact that project deadline was already missed.
Cost Analysis:
The project of the new Royal Adelaide Hospital is one of the most costly project in
the world considering its initial price tag of 1.8 billion Australian dollars. Though the initial
price tag for this project was 1.8 billion dollars, it actually taken 2.4 billion dollars to
complete due to the delay in the project (Kearney et al. 2016). In the following section
financial appraisal of the project and cost benefit of the project is followed.
Funding Source Analysis:
Here the main funding will be done by the government of the Southern Australia.
Considering the initial price tag of new Royal Adelaide Hospital it was quite a good project
as this has improved the medial services in Adelaide and suburbs vastly and also crated many
of the jobs which justifies its initial price tag of 1.8 billion dollars, but as the cost of the
project raised up to 2.4 billion dollars somehow the price tag unjustified the services offered
by the new Royal Adelaide Hospital (Feszczak et al. 2018). Still, as this hospital is serving
many of the patients from Adelaide city and also the peoples outside from this city, the price
tag of new Royal Adelaide Hospital can be also considered as justified in this case.
Cost Benefit of the Project:
From the budget of the project it has been assessed that total cost of the project was
2441.3 million of Australian dollars. It has been assessed that other than the construction cost
the main costs related with the project was furnishing related costs, dual running costs and
ICT program related costs. From the cost and the benefit of the project it has been analysed
that initially the project failed to provide proper benefit while compared with the cost of the

8PROJECT REPORT OF NEW ROYAL ADELAIDE HOSPITAL
project. In the following stages it is assessed that the project was actually providing more
benefits to the patients of the Adelaide city and the suburb areas of it (Bautz et al. 2016). So,
it is measured that this project has provided equal benefit regarding the cost of the project.
Definition of the Project:
Objective of this Project:
The main objective of this project is creating a sustainable healthcare system for the
peoples of Adelaide. Through this project the local government of the Adelaide will be
capable of providing better healthcare system to the peoples.
Benefit and Limitation of the Project:
From the brief analysis of the project it has been assessed that the main benefit of the
project are better healthcare services to the peoples of Adelaide and the suburb area of it.
Also this project is very much beneficial for the peoples who need a high class and complex
surgery. The new Royal Adelaide Hospital is capable of providing a high class surgery to the
patients. Also, advanced medical facilities are also provided through this project. Thus better
healthcare is provided to the through this project to the peoples of Australia (Tan and Hunt
2017). Also, this project of the new Royal Adelaide Hospital has built in some unique such
that it will be capable of generating less carbon-di-oxide gases when compared with other
same level of hospitals. Thus due to this factor the overall environment will be benefitted
through this project.
The main limitation of the project is that the medical facilities that are being available
regarding this project is not accessible in the rural areas. Also, this project was a PPP project
due to which there was some internal limitations in the project (Osei-Kyei and Chan 2015).
One of the major limitations of this project that it is not a cost effective project. The initial
costing for this project was very much high due to its ultramodern medical facilities, but due

9PROJECT REPORT OF NEW ROYAL ADELAIDE HOSPITAL
to some reasons the project got more delayed and the project become least cost effective in
this segment.
Project Checklist:
 The main aim of this project has been established clearly and it is also determined that
what the project will accomplish.
 Stakeholder of the project has been identified and among them most important
stakeholders are also determined.
 Requirement analysis for the project stakeholder has not been done in this case.
Environmental Analysis of the Project:
Purpose of the Environmental analysis:
The environmental analysis is done of this type of projects to get a brief
understanding of what other similar type of constructions project has done for addressing
problems in the project (Keith 2017). In this section of business case this project will be
compared with other similar type of projects.
Description of the Environment Analysis:
This analysis will provide a brief information about what similar types of projects has
done to mitigate various types of similar issues which occurs within this type of construction
project. This can also include similar type of objectives that are related with the scope of the
project (Sciara et al. 2017). The environmental analysis can include various types of
information such as length of the project, cost of the project, outcomes of the project and the
benefits achieved through the project.
While comparing the project of new Royal Adelaide Hospital with other similar type
of projects it has been determined that cost of the projects is a serious issue and it need to be

10PROJECT REPORT OF NEW ROYAL ADELAIDE HOSPITAL
managed essentially. While the cost of the new Royal Adelaide Hospital was overrunning the
other similar type of projects has taken the approach of the proper project scheduling and
budgeting plan. Though this approach the other similar type of projects were capable of
controlling the project under the control. Many projects also maintained some extra funding
for occurrence this type of budget overrun issues. The project outcome related issues were
mitigated by continuously focusing on the projects (Kerzner and Kerzner 2017). Most of the
projects has approached this way including the new Royal Adelaide Hospital project also.
The length of the project is also an important factor in this aspects. Here the new Royal
Adelaide Hospital project has also failed to meet the deadline of the project. While
comparing this factor with the other similar type of projects it has been determined that for
successfully meeting the deadline of the projects, the project was divided into several of
smaller steps and timeline of this smaller steps were also determined. Through this length of
the project was under control.
Project Organization:
The project organization is the structure regarding the project which facilitates
implementation and coordination regarding the activities of the project (Harrison and Lock
2017). The project organization is the main reason for creating the environment which fosters
interactions among the team members with having minimum overlaps, disruptions and
conflicts. The main two divisions of project organization are the project governance and the
progress reporting.
Project Governance:
The project governance is an important factor for the projects which is also important
for the project of new Royal Adelaide Hospital (Muller 2017). The project governance
framework of the new Royal Adelaide Hospital was not to appropriate in this case, due to

11PROJECT REPORT OF NEW ROYAL ADELAIDE HOSPITAL
which the overall project faced various types of problems during the execution stage of the
project. Due to this improper type of project governance decision making progress of the
project got jeopardised and failed to execute properly. Thus important responsibilities and
executions need to be defined within the structure of project governance which was not
defined in this case.
Project Reporting:
The project report consists various of aspects regarding the project. Project status
report is mainly considered when delivering a project report (Webb 2017). In the following
section a brief report about the new Royal Adelaide Hospital project will be discussed.
Considering the current situation of the project, this project has been completed
successfully without any type of functional error or the construction related error. Though
any type of problem was not present in the functional and construction related execution, this
project faced issues regarding the completion of the project. The project missed it official
deadline for completion of the project, due to which the cost of the project also increased.
Thus the main issues which was related with the project was missing deadline of the project
and increment of the project budget. As the project is completed and the new Royal Adelaide
Hospital is currently functional there is no upcoming work of construction project of new
Royal Adelaide Hospital. Considering the overall completion of the project, the project is
now fully completed and the budget that it spent for the whole project is around 2.4 billion
Australian dollars and the percentage of the spend budget is 133%.
Conclusion:
From the above discussion it can be concluded that overall the project of new Royal
Adelaide Hospital has been executed properly but with some major faults due to which the
timeline of the project is increased and cost of the project also increased. As the project was

12PROJECT REPORT OF NEW ROYAL ADELAIDE HOSPITAL
completed successfully after missing the deadline and the increment in the budget without
any major type of error this project saved from becoming a complete failure. In this report
business case has been presented for the construction project of new Royal Adelaide
Hospital. In the discussion of the business case report a brief introduction has been provided
regarding the project of new Royal Adelaide Hospital. Following the introduction stage of the
report the finance related details of the project has been shared in this report which including
the financial appraisal of the project and cost benefit report regarding the project. After the
project finance related discussion definition of the project has been provided briefly. In this
aspects background information regarding the project has been shared. Also, the objective of
the project, scope of the project and benefits and limitations of the project has been discussed
briefly in this case. With that stakeholders of the project and anticipated outcomes from the
project is also discussed. In this document next segment is regarding environmental analysis
of the project. In this segment a perfect analysis of the environmental aspects of the project
has been done. In the following section various of risks that are related with the project has
been discussed and how this project related risks affected the project has been assessed.
Project organization has been also discussed in this report. In the section of project
organization mainly the project governance and the project reporting of the new Royal
Adelaide Hospital has been discussed briefly. From the project governance it has been
assessed that there was some problems in the project governance structure of new Royal
Adelaide Hospital and in the project reporting section current status of the project has been
discussed briefly.

13PROJECT REPORT OF NEW ROYAL ADELAIDE HOSPITAL
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resuscitative thoracotomies for blunt and penetrating trauma at the Royal Adelaide Hospital.
Cagliano, A.C., Grimaldi, S. and Rafele, C., 2015. Choosing project risk management
techniques. A theoretical framework. Journal of Risk Research, 18(2), pp.232-248.
Delmon, J., 2017. Public-private partnership projects in infrastructure: an essential guide for
policy makers. Cambridge University Press.
Feszczak, C., Chalmers, C.C.O.O.H., Hayes, M., Hayes, J., Debenham, A. and Debenham,
B., 2018. Law Society launches charity partnership with Royal Adelaide Hospital Research
Fund. THE BULLETIN, p.26.
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Routledge.
Kearney, B., To, J., Southam, K., Howie, D. and To, B., 2016. anaemia in elective
orthopaedic surgery–Royal Adelaide Hospital, Australia. Internal medicine journal, 46(1),
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Keith, L., 2017. Environmental sampling and analysis: a practical guide. Routledge.
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14PROJECT REPORT OF NEW ROYAL ADELAIDE HOSPITAL
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