PROJ6004 - Contract and Procurement: Royal Adelaide Hospital Report

This case study delves into the contract and procurement processes of the Royal Adelaide Hospital, highlighting challenges, risks, and best practices. The report analyzes the hospital's procurement context, including the need for health plan transformation and the complexities arising from public criticism and project delays. It examines project environment, organizational aspects, leadership, and governance, and how these factors influenced the situation. Key risks such as bidding price considerations and the quality of services are identified, along with mitigation strategies like proper checking of precedent conditions and setting built-in checks and balances. The importance of timeliness in procurement and the need for a centralized date management system are emphasized. The report concludes with a summary of key findings, emphasizing the importance of responsibility and learning from experiences, and outlines best practices for procurement and contracts management, including performance indicators, billing behavior, and the roles of project and procurement managers in ensuring successful delivery. Desklib offers this and many other solved assignments for students.

Running Head: CONTRACT AND PROCUREMENT 1
Title
Author’s name
Institutional affiliation

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Contract and Procurement
Part A
Introduction summarizing the procurement context
The South Australian office has always paid much attention to the condition of patients in
hospitals (Cherny & Christakis, 2011). There was a need to experience a full transformation of
the health plan of the people of South Australia to ensure that they get to be comfortable through
their operation. In the previous days. The individuals were known to experience poor medication
standards, for example, being housed in dormitory wards rather than the single rooms with
ensuites. Tendering of procurements were done, and all were under one primary slogan of best
care (Reisman, 2010). Purchases of new requirement had to be done at a high rate. The health
budget had to rise every other day, and it served as a significant threat to the State Budget. In
some occasions, some equipment was purchased in excess. The number of beds that were bought
by the government went higher than the national average number of beds needed for a particular
population. Such kind of action led to the complications associated with the process to rise.
Complexities
Complexities will always make individuals shy away; hence, the management team had
to work hard to eliminate any of them (Clemen & Reilly, 2013). Complex working came in when
critics started flowing in regarding the general plan. There was a complaint that the implemented
plan lacked enough details for others to understand. Apart from that, there was no room set aside
for public comment. Such an accusation would only be resolved by changing the plan and
involving the public through the whole process. The result would be that the development

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process would have experienced significant delays. Apart from that, the probability of the project
being a success would be highly reduced. After completing the procurement process and the
services in the various hospitals being better than the previous days, the society expected a rise in
the performance of the staff. Apart from that, the outcome of medications was expected to
increase and there should be a decrease of patients succumbing to death. However, the case was
entirely different. Despite the bed and staff being in abundance, the outcome of the South
Australian system became poorer. It was noted that there were more extended inpatients stays
compared to the other jurisdictions. The survival of patients was also observed to vary
significantly from one hospital to other in addition to the time that the patient did arrive in the
hospital (Berdowski et al, 2010).
Project environment and organization aspects, leadership and governance and how that
has influenced the current situation.
Excellence has been the desire for many in carrying out their daily activities. Individuals
will always find out to tell the areas they are missing as a way of ensuring that they get to
improve in the area. Professionals have been chosen to help in identifying the areas of weakness
in a specific project so that to better the services in the coming future (Maister, 2012). The plan
to improve the health services in South Australia also called for a similar format to be used in
making the whole process a success. The state government facilitated the selection of three
clinical groups who were to be responsible for drawing standards for the procurements that were
made. Approximately 284 standards were drawn. The working format had also to be observed to
ensure success is achieved at the end of the day. The working was organized in such a way that
there will be a streamline metropolitan hospital system (Walsh et al, 2010). The major hospitals
in the North Spine included Lyell McEwin Hospital, Royal Adelaide Hospital, and Finally

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Flinders medical Center. Such a kind of divisions and improvement of working environment led
to the working time being increased to 24 hours daily in a week. Apart from that, dealing with
major diseases has been very easy for example, it has been comfortable dealing with major
trauma in addition to the different life-threatening illnesses. Distribution for emergency resources
was too excellently done through the nation. As a result, dealing with emergency cases was, and
most lives were rescued from death.
Part B
Key risks, mitigations and possible learnings
While carrying the procurement process, there is a need to be very keen with the various
bidders and the prices that they offer to the company. The bidding price has always to be
considered to ensure that the stability of the government is maintained (Ward, 2016). Apart from
that, the quality of service to be offered after facilitating the payments should be keenly checked
to ensure that at no point will the government lay complaints on a particular individual for not
acting responsibly in their areas of responsibility. Properly checking of the precedent conditions
was to be done excellently. Apart from that, while passing a clause regarding the procurement
process, the benefits and the disadvantages have to be efficiently studied (Marques & Berg,
2011). However, through the tendering of the contracts, risky behavior was displayed by the
departmental members. The situation occurred when the precedent clauses were not properly
checked (Eriksson & Westerberg, 2011). Most of the individuals were focused much on the end
products rather than the process that will lead to attaining the service. Individuals rushed through
the various health reforms. Some reforms were expensive citing the work associated with it. On
the other hand, some were easily managed and only needed little attention. However, care was

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not observed through the whole process. Almost all the reforms were stated in the budget. Apart
from that, the procurement was done and the tender issued to particular companies that
demanded more than the government could manage. The result was the state budget ended up
being highly overwhelmed. Teams were set to review the working of the department in the
hospital to tell on their efficiency.
The government had to take significant steps regarding such action in ensuring that the
budget is cut. According to the state budget, the government chose to eliminate the share set for
the South Australian Health for the sake of ensuring that the major hospital upgrades plans are
frozen and some order placed. Several parties had to come in as a way of providing that a
balance was struck for better working. There was a need to set built-in checks and balances
ensuring that they are proven at all times (Okunlola, Aina & Yakeen, 2011). Working has a
significant basis on time. The critical dates on certain upgrades were to be scheduled, and the
enhancements recommended gradually rather than instantly. The complexity of the department
citing it dealing with health nationwide needed the setting of multi-party management. The team
played a significant role in ensuring efficiency in handling the procurement process cutting down
on possible errors (Alloway & Alloway, 2010).
Success is ever associated with punctuality. There is a need for every activity scheduled
for a particular day to be achieved on that very day. In business, timeliness is even more vital.
The customers will always be discouraged or encouraged depending on how punctual one will be
in delivering their promises and services to the society. In the health sector, time is directly
proportional to the survival of patients and not succumbing to death. Services have to be
provided fast and on time to ensure one’s health does not grow to be worse any other time (Luedi
et al, 2017). The procurement sector called for being punctual to ensure that all legal procedures

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are carried at the particular time. Apart from that, being punctual provided that the needed
products were delivered to the relevant offices at the right time. The health department and the
New Royal Adelaide Hospital had to procure beds and ambulances to facilitate the proper
handling of the emergency department. However, before, the issue of the contract to a particular
company, there was a need to involve the public in bidding in addition to allowing them to
comment on the needed products. However, the significant risk experienced was that the
deadline was missed. There was no working system set to ensure that the dates are reminded.
The result was that some activities were done so fast ignoring some significant processes needed
to make the process a success. The planning details were also ignored in the process of working.
Individuals performed responsibilities based on their understanding of the same. Some products
acquired were more than the expected number in the society. Such a working interfered with the
set order in the nation.
Dealing with the situation was a significant challenge. Some losses had to be accepted,
and the resources that were attained in excess were to be put to good use. Apart from that, the
critics that came from the various institutions had to be accepted and an appropriate response
given afterward. Proper dealing with the situation in the future days called for setting a
centralized date management system (Gu & Day, 2013). The system acted as one of the perfect
reminders to the fast approaching dates. The system worked to see that there were e-mail alerts
to all significant decision-makers in the company. Such warnings ensured that at no point no
deadline regarding any activity was missed (Chase et al, 2013). Apart from that, it relived many
from confusion in working as there was a set order in working. The deliverables to be offered
within a particular time should never be missed. The decision times were also to be observed
ensuring that recklessness was never experienced.

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Part C
Summary of the key findings
Our everyday actions will always affect the working of a department in one way or
another (Norman, 2013). There is a need to be responsible for each step that one has to
undertake. Responsibility will always lead to success being realized every other day. Failure to
adhere to proper working some risks may occur which may lead to losses being incurred.
However, attaining a lesson from every experience will lead to better performance the following.
There is a need for consistently exercising the lessons learned to ensure that a set of better
practices is emulated by many within the particular institui0on or organization. Some of the best
practices that should be embraced in the procurement department are extensively discussed
below.
Best practices for procurement and contracts management
The performance will always indicate the progress in working for a particular
organization (Reason, 2016). The key performance indicator reports are some of the documents
that, many leading the procurement team will pay attention to tell the working progress.
However, ensuring that performance is being realized is not about perusing such reports and then
carrying out the application of rewards and penalties. When a contract is issued, the success of
the agreement will be informed by the outputs and inputs of the provider in addition to the
involved process that contributes in leading to the desired outcome.
The billing behavior has been highly observed as a way of ensuring that the procurement
process gets to be a success. Dealing with clients primarily starts at the billing stage. The
comparisons that have to be done for example the actual work and the billed work have to be

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accurately done (Trkman, 2010). Apart from that, other documents to be compared include the
third-party invoices and the expenses that are being claimed. Right practices in the department
will call for cutting down on high costs for unnecessary activities. There is a need to understand
that inaccurate billing combined with the embrace of bad practices will lead to high cost being
experienced through the running of the procurement program.
Roles of project and procurement managers in ensuring successful delivery
Upholding such best practices in the procurement department will also depend on the
leaders in the particular department. The manager is one of the vital positions in ensuring that the
working in the department remains to be excellent. A successful delivery will always be
achieved when they are always on the onsite of the day to day activities. The manager will check
that all procurement team members offer their services in line with the client’s advice ensuring
high levels of accuracy (Fayol, 2016). There are cases where some decisions become very
complicated. The procurement manager will ensure that the delivery of the same is excellent by
coming in and offer input in making a strategic decision. An excellent decision will, however, be
reached when the manager properly coordinate with the procurement director.
Every project will come with diverse requirements. The project manager will play a
significant role in telling the needs of the project and informing the requirements for proper
actions to be taken. Having a standardized procurement process will help the activity be done
easily with less confusion. The procurement manager is responsible for coming up with a
standardized process that guides the working of the rest of the team.
Part D

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Reflection Journal
Through the working I learnt that comfort living will always be attained when the various
living factors are dealt with efficiently. The health plan being the most significant factor
contributing to the better life of persons in the society. Improving such plans will call for
overhauling. However, I will need to be keen on the budget to ensure that there is no interference
with the previous stability. Failure to adhere to the working styles efficiently will lead to a
complicated situation arising one after another. The case might get worse if I will not handle the
complexities with care. Discouragements might also come along the working process as a result
of the unexpected results being the primary outcome. Such kind of conditions will call that I be
patient and display endurance. I did also establish a conclusion that students in schools should
learn to exercise such values through their studies. Embracing the virtue will lead to them
handling the future circumstances with much ease. There are cases where despite embracing
specific values, there is still no significant changes in the results. Such cases will call for
employing professional personnel to help in analyzing the situation. The working format can also
be changed in such circumstances to ensure a stable success.
During procurement, I did discover that there is a need to appropriately consider the
bidding price and the quality of service as it will dictate the excellence of the procurement
department. I will also be careful especially when dealing with the precedent conditions. Some
clauses being set have to be keenly checked to ensure the department is working within the
expected budget. Such working will cut down on burdens placed on the government. There are
cases when the tasks set for a department are more than what was expected. In such cases I will
have to increase the management committee to make the working smooth in addition to
maintaining the excellence in service. However, regardless of the number of workers, I will

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always have to check on the time. Timely working leads to comfort operation. One will find it
easy complying with the process involved. Failure or success may be achieved in one event or
another citing the past mistakes. However, there is a need to ensure that a lesson is learned.
Embracing the teaching through the daily practices will lead to perfection in daily operation.
When dealing with contracts, I did understand that it is not only about checking the key
performance indicators instead I have to embrace the inputs and outputs of the provider in
addition to been keen on the process.

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