PROJ6004 Contracts and Procurement Report: New Royal Adelaide Hospital

This report provides a detailed analysis of contracts and procurement practices within the New Royal Adelaide Hospital project. It begins with an introduction to procurement processes, highlighting the project's context as a Public-Private Partnership (PPP) and outlining the scope of the work. The report then dissects the project's procurement components, including the procurement process, roles and responsibilities, timing considerations, and vendor processes, alongside a discussion of the tender evaluation process, specifically the use of open tenders. Part B of the report identifies and discusses key complexities, issues, and risks faced by the project, such as project delays, cost pressures, insufficient staff training, and industrial disputes, while also examining the project environment, organizational aspects, leadership, and governance influences. Finally, Part C suggests key mitigation strategies and possible learnings, including revising the project plan, reviewing current processes, implementing a governance assurance framework, and reducing conflicts through effective leadership. The report concludes by identifying the dependencies and common themes within the procurement process, emphasizing the importance of structured methodologies to achieve desired outcomes.

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

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Table of Contents
1. Introduction..................................................................................................................................2
2. Discussion....................................................................................................................................2
2.1 Part A.....................................................................................................................................2
2.2 Part B.....................................................................................................................................5
2.3 Part C.....................................................................................................................................7
3. Conclusion...................................................................................................................................9
References......................................................................................................................................10

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1. Introduction
Procurement can be referred to as the core procedure to find as well as agree to different
terms and conditions for acquiring different types of goods or services from various external
sources through a tendering or a competitive bidding process (Lloyd-Walker & Walker, 2015). It
eventually includes making purchasing decision under any scarcity condition. The respective
corporations eventually define various processes that are intended in promoting fairer as well as
open competition for then business during minimization of the risks like exposure to collusion
and fraud. The major factors impact this specific procurement like handling, delivery, price
fluctuation and marginal benefits (Fleming, 2019). This report will be outlining a detailed
discussion over contracts and procurement for the popular as well as significant case scenario of
New Royal Adelaide Hospital with relevant details related to different procurement components,
complexities with suitable mitigations.
2. Discussion
2.1 Part A
2.1.1 Introduction and Summarization of the Procurement Context and Scope
The New Royal Adelaide Hospital is the largest and the most significant social
infrastructure project. The respective project was required to be made, maintained, financed as
well as provided with all types of non medical equipment and services with the help of PPP or
public private partnership arrangement (de Araújo, Alencar & de Miranda Mota, 2017). There
would be some of the most distinct and noteworthy features of this new project, which would be
providing major advantages to the customers under every distinct circumstance. The
procurement context of the project work was extremely effective and they have focused on their

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project delivery on top priority (Brahm & Tarziján, 2015). The designing and construction works
are being eventually progressed by the respective subcontractor builders. There existed a lack of
proper framework for contract management present within the organization for their clinical
equipment procurement program. For several aspects of procurement, it is being analysed that
the scope, cost or time of the project modification was not subsequently agreed with the
respective Project Co and was even considered as the highest risk or threat (Walker & Rahmani,
2016). It was checked that clinical equipment procurement program could be improvised in
respect to content and frequency of the project.
There had been effective system or process for decision making, which are being timely
studied by the respective management for providing better growth scope to the respective
hospital. The project is segregated into different phases and also help out the project manager in
achieving distinct milestones eventually (Carithers et al., 2015). The issues related to
governance, cost or project delays would be removed if the procurement plan is revised and the
project work would be made much more effective and efficient. As a result, better scope of the
procurement would be gained and the project would be becoming successful.
2.1.2 Identifying the Project Procurement Components as well as Tender Evaluation
The current growth of the project is being expected to go extremely well; however there
might be some of the most distinct and important issues in their respective progress and hence
delays might be faced in the plan (Ruparathna & Hewage, 2015). Moreover, there exists some of
the most distinct and important project procurement components for the respective project of
New Royal Adelaide Hospital. These project procurement components are provided in the
following paragraphs:

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i) Procurement process: The first and the most significant and important component of
the project procurement of this particular work of New Royal Adelaide Hospital is procurement
process (Javed & Liu, 2017). The organization has initiated a request and then developed the
major requirements of quality, constraint, timing and technical. Moreover, it is also needed to get
approval for request and complete purchasing authority. They have also done tendering for the
work and ensured proper contract management responsibilities.
ii) Roles and Responsibilities: The second distinct and important component of the
project procurement of this particular work of New Royal Adelaide Hospital is role and
responsibility (Ruparathna & Hewage, 2015). They have been able to identify their major roles
before initiation of the work.
iii) Timing: Although, the project is getting delayed at present time; timing is the next
vital and significant component of the project procurement. Project delays not only increase the
risks, but also increase the costs of the project to a high level.
iv) Vendor Processes: The respective vendors of the project must utilize for timesheet
approval, status reporting, scope change requests and many more (Rane, Narvel & Bhandarkar,
2019). As a result, it becomes extremely important and significant to deal with such processes
and increase the chance of better effectiveness and efficiency in the specific project.
There had been proper tender evaluation in the project of nRAH. It is the core procedure,
in which the financial institutions and governments invite bids for the larger projects, which are
needed to be submitted within a specific deadline. This particular project manager has taken up
one of the most effective and significant tendering procedure, so that it becomes easier for them
to get the most appropriate cost in the work (Uttam & Roos, 2015). They have used open tender

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in their project work. Open tender is the bidding procedure, which is open for all the qualified
bidders and here the sealed bids are eventually opened in public for better scrutiny and are
selected based on the quality and price. This type of tender is also referred to as competitive
tender and nRAH has reviewed the post evaluation negotiations with their preferred tenderers.
2.2 Part B
2.2.1 Description of the Complexities and Key Issues and Risks of the Case Study
The project comprises of the some of the most distinct and noteworthy complexities and
risks for the case study of nRAH and these risks are provided in the following paragraphs:
i) Project Delay: The first and the most significant complexity or risk that was being
faced in the project of nRAH is project delay (Wondimu et al., 2018). They faced major delays
while procuring materials during initiation phase and then following up of the major actions for
their plan. The respective organizational management was responsible for such activity and it
affected the work majorly.
ii) Cost Pressure: The second distinct and significant complexity or risk that was being
faced in the project of nRAH is cost pressure. There was a specific budget fixed for the project;
however the project exceeded the budget majorly and hence review noted the specific cost
pressure while delivering their services of ICT. This type of cost pressure also incremented the
risks’ factor.
iii) Insufficient Staff Training: Another vital and noteworthy complexity or risk that was
being faced in the project of nRAH is insufficient training of their staff (Ramanathan &
Narayanan, 2016). It was noted that the new ICT system was required to increase the overall

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efficiency to a high level. However, the staff were inefficient in the process and they required
training.
iv) Industrial Disputes: A major dispute was raised within the parties and for the cost
pressure activities, the State had lost their trust on the project and it caused major industrial
disputes for the respective project work.
2.2.2 Discussion of the Project Environment and Organizational Aspects, Leadership and
Governance and their Influences
The project environment of nRAH was quite effective; however the influence of the
stakeholders over the project progress was being marked in terms of the overall accessibility,
which was being granted to the respective management team (Ruparathna & Hewage, 2015). The
stakeholders are referred to as the major parts of a project and the major stakeholders of this
particular work include service users, service providers, suppliers, health care professionals and
many more. The internal as well as external stakeholder analysis is required for analysing the
overall process in the most effective manner and also gain maximum effectiveness eventually.
The suppliers as well as other partners of the project have collaborated every attribute properly
for helping the management in supplying their raw materials within time and hence ensuring an
effective supply chain management as well as generating a long term progress of the work
(Brahm & Tarziján, 2015). The project environment was also influenced by the internal
stakeholders, which involve all types of non professional, professional and management staff for
remaining connected with the project.
Project management could infuse several interests of the stakeholders, so that conflicts
are arising within them and they face various problems. Different distinct opportunities were

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infused with the overall organizational development that maintained with the stakeholders’
interests are for ensuring balance in the company in the most positive manner (de Araújo,
Alencar & de Miranda Mota, 2017). Leadership issues were also present in the project of nRAH.
The leadership in project management is considered as one the most vital and significant
requirements in the project work. The leaders eventually develop a vision for constant
communication of the vision in the entire company for successfully achieving the vision. The
leaders subsequently keep their people enthusiastic in their work and also focused on the project
vision. In this particular project, the major efforts are provided more in terms of facilities
provided for the maintenance of hospital infrastructure (Lloyd-Walker & Walker, 2015). There
was also lack of unity amongst the member of team and one of the major reasons of this aspect
was that the leadership attribute was not proper. It was also needed to improve the overall
assurance framework for ensuring the key governance committee of the project with independent
assurance over the program or progress of the work.
2.3 Part C
2.3.1 Identification or Suggestion of the Key Mitigations and Possible Learnings
The most significant and noteworthy mitigation techniques and possible learnings of the
project of nRAH are provided in the following paragraphs:
i) Revising the Project Plan: The first and the foremost mitigation technique for the
project of nRAH is revising the project plan effectively for better analysis of time and budget
(Fleming, 2019). It would be extremely effective for them since they would be able to complete
the project with major efficiency.

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ii) Reviewing of the Current Process and Attribute of the Project Progress: The second
effective and efficient mitigation technique for the project of nRAH is reviewing the current
procedure as well as attribute of the project progress, so that the project becomes successful
under every circumstance.
iii) Implementation of a Governance Assurance Framework: Another distinct and
important mitigation technique for the project of nRAH is successful implementation of a
governance assurance framework for the project work (Carithers et al., 2015). It is lacking in
their project and hence usage of such framework would ensure that the project is well governed
by the project manager eventually.
iv) Reducing Conflicts with proper Leadership: The fourth mitigation technique or
learning for the project of nRAH is reduction of conflicts with proper leadership. With proper
managerial process and applied strategies, the organization would be able to reduce their
conflicts in the most effective manner and better performances would be gained under every
circumstance (Ruparathna & Hewage, 2015). Moreover, the roles and responsibilities of the team
members would be made understood by the project management.
2.3.2 Identification of Dependencies and Common Themes
Procurement is the major process that provides structured methodologies and techniques
for streamlining the organizational procurement process and also obtain desired results while
saving up of costs, reduction of time as well as building the winning supplier relationship. This
particular process could either be direct, proactive or reactive in nature; hence it is needed to
ensure that the overall process is being completed under every vital specification (Rane, Narvel
& Bhandarkar, 2019). The dependencies of a project can be determined within the tasks of the

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project. It is needed to list as well as sort the activities and tasks and then determine the
dependency on one another.
When accurate data is present, it is considered as the best practice of making use of
economic analyses methodologies like cost utility analyses or cost benefit analyses. This
particular process is being utilized for being sure that the buyer is getting goods and services at
the best possible cost when major aspects like quality, location, time and quantity are being
compared promptly. A proper sequence of tasks is being followed for this purpose. The project
dependencies of nRAH project include different stage division, vibration, acoustic,
environmental and logistics advisory aspects (Uttam & Roos, 2015). Proper leadership was also
needed to be followed for the project work and ensuring that a successful delivery is included
under every circumstance. The common themes of the project include stakeholder management,
leadership, conflict management, negotiation, coaching and development of vision.
3. Conclusion
Hence, a conclusion could be drawn that contracts and procurement is extremely
important and significant for any organization to ensure that the business is acting effectively and
without involving any type of complexity or issue. The procurement activities are being split into
two distinctive categories, which are indirect and direct spend. The direct spending refers to
various production related procurement activities, which encompass every item that is the part of
the finished products like raw materials and direct procurement affects the production procedure
of manufacturing. As a result, supply chain management is being emphasized and all the
operating expenses are being incurred. The above provided report has clearly outlined a detailed
analysis of procurement method of the case study of nRAH with relevant description.

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References
de Araújo, M. C. B., Alencar, L. H., & de Miranda Mota, C. M. (2017). Project procurement
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Brahm, F., & Tarziján, J. (2015). Does complexity and prior interactions affect project
procurement? Evidence from mining mega-projects. International Journal of Project
Management, 33(8), 1851-1862.
Walker, D. H., & Rahmani, F. (2016). Delivering a water treatment plant project using a
collaborative project procurement approach. Construction Innovation.
Carithers, L. J., Ardlie, K., Barcus, M., Branton, P. A., Britton, A., Buia, S. A., ... & Guan, P.
(2015). A novel approach to high-quality postmortem tissue procurement: the GTEx
project. Biopreservation and biobanking, 13(5), 311-319.
Ruparathna, R., & Hewage, K. (2015). Review of contemporary construction procurement
practices. Journal of management in engineering, 31(3), 04014038.
Ruparathna, R., & Hewage, K. (2015). Sustainable procurement in the Canadian construction
industry: current practices, drivers and opportunities. Journal of Cleaner
Production, 109, 305-314.
Rane, S. B., Narvel, Y. A. M., & Bhandarkar, B. M. (2019). Developing strategies to improve
agility in the project procurement management (PPM) process. Business Process
Management Journal.