Contracts and Procurement: Royal Adelaide Hospital Project Report

This report analyzes the contracts and procurement processes associated with the new Royal Adelaide Hospital project, focusing on risk identification and mitigation within a Public Private Partnership (PPP) framework. It identifies key issues such as inadequate contract management frameworks, lack of proper reporting, and insufficient risk assessment. The report recommends a robust framework with quality assurance reviews, formalizing operational board memberships, and developing clear milestones for reporting. It emphasizes the importance of effective communication, internal strategies for clinical involvement, and the role of the procurement manager in ensuring compliance and successful project delivery. The study highlights the significance of contract management in healthcare projects, the importance of strategic vetting, and the need for effective vendor relationships. The report also explores the financial aspects of procurement, performance-based contracting, and the importance of ethical and transparent supplier management, offering valuable insights into improving procurement practices and project outcomes.

Running head: CONTRACTS AND PROCUREMENT
Contracts and Procurement
Name of the Student
Name of the University
Author note

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Table of Contents
Part 1: Introduction..........................................................................................................................2
Part 2: Identification of the issues and risks associated with new Royal Adelaide Hospital..........3
Part 3: Recommendations for contracts and procurement management.........................................4
Part 4: Summary of common themes...............................................................................................6
Part 5: Reflection.............................................................................................................................8
References......................................................................................................................................10

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Part 1: Introduction
The functions of a tangible contract management help in management of obligations in an
effective way. It saves times and efforts of both parties. On the other hand, contracts can dictate
the aspects of the key business strategies. There are several contractual parties seen to spend time
as well as resources. The documentation of procurement provides a significant input as well as
output procedures in order to ensure fair bidding as well as review the proposals of suppliers and
making sure accountability as well as performance. Present study deals with the importance of
contracts and procurement in mitigating risks associated with Royal Adelaide Hospital. In
addition, the best possible practice contract and procurement process for the organization and
responsibilities of procurement manager for satisfaction and successful project are explained in
the paper.
Procurement planning as well as adoption of effective procurement practices leads to
develop better value for money consistently. It also assists in delivering higher quality project
and minimized risks for agency. Procurement planning engages analyzing the process of supply
market working and evaluating the risks and defining the best practices as procurement strategy
in order to meet demands of the project. In the present study, development of new Royal
Adelaide Hospital has been selected as case study project, where a Public Private Partnership
arrangement has been developed between the State Government and SA Health Partnership Pty
Ltd. In this situation, it becomes vital to define the risks associated with the project and take
effective contract and procurement management for the project.

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Part 2: Identification of the issues and risks associated with new Royal Adelaide Hospital
Hastie, Sutrisna and Egbu (2017) stated that a project with substantial procurement
element needs vital efforts by the project manage in order to ensure that contracts encounter the
demands as well as constraints of the project plan. The contracting approach based on
performance was pioneered by the US defence industry that has been adopted across the world.
Effective implementation of contracts and procurement improves reliability, availability and
certainty of delivery. It also helps to minimize cost of ownership. The purpose of the project is
developing, maintaining, financed and non-medical services as well as equipment used
organization using a Public Private Partnership arrangement. The collaboration has been
developed between the State and SA Health Partnership Private Limited as the chosen PPP
proponent (Anthopoulos et al., 2016). The total value of the project is $1.85 billion
approximately. However, the arrangements of project assurance are not completely understood
by the Committee along with the governance committee. It creates risks in the project that results
not delivering the project as planned. In this perspective, it is required to develop appropriate and
effective contracts and procurement plan for Royal Adelaide Hospital that will be useful in
delivering the project successfully.
Risk information provided to the specific Committee needed enhancement to provide a
proper understanding and take effective strategies to mitigate them (Mesa, Molenaar & Alarcón,
2016). There was a lack of suitable and effective contract management framework as well as
plans for clinical procurement. SA health follows the process of reviewing the status of
professional services contracts consisting of identification of quantum, status as well as value of
the contracts for ICT services’ vision. There was an opportunity for improving contract
management practices through documentation that an officer had specific responsibility to make

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sure compliance with particular clauses of PPP Project Arrangement as well as through
providing regular reporting on the compliance status.
Warner (2017) argued that for procurement bundles of opportunity, timing and cost that
are risks for the project. Hence, it is important to crystallize the project and settle by commercial
settlements with state. In this situation, it is important to report to the procurement board of the
state on the particular status of clinical equipment procurement program. It can be helpful to
improve frequency and content provided. On the contrary, lack of effective repot provided to the
Committee regarding the process developed in order to install clinical equipments agreed to
Master work program (Warner, 2017). Moreover, the information given to the Committee did not
report the key risks and status effectively related to the process of procurement as well as
installation procedure in terms of the State encountering the time frames, which is specified in
the project agreement.
Part 3: Recommendations for contracts and procurement management
In order to overcome the risks, it is required to ensure a robust framework approved as
well as implemented in the project (Amann et al., 2014). SA health needs to finalize the work
that is undertaken for developing a structure in order to give independent assurance.
Implementation of quality assurance review of monthly iPMO reports that are given for
governing the committees making sure information. In addition, formally reviewing as well as
approving the membership as well as terms of reference for the operation board is important
(Roehrich & Lewis, 2014). It is to essential defining as well as documenting the key milestones
to report the purposes as well as PPP contact work stream into the single report ensure regular
preparation.

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Hashim, Sapri and Low (2016) argued that finalizing the development as well as
deployment of JIRA system as well as associated processes to help with management and
tracking ICT procurements in the project through several stages of procurement lifecycle. In
addition, development and implementation of the status of procurement of ICT services can be
helpful. It is also recommend that SA health finalizes as well as approve draft strategic
acquisition plan, is required for the purpose of procurement of ICT services for the project
(Hashim, Sapri & Low, 2016). In addition, it is recommended that SA Health makes sure that
approval for revising the approved procurement approach need to support the approach that is
properly documented.
Franz and Leicht (2016) stated that the procurement has an important role in ensuring the
parties to the contract encounter contractual obligations. On the contrary, a contract management
tool by which the key strategies as well as activities are required to manage new project
agreement. The manuals did not able to identify the person for ensuring the compliance with
specific clauses of the agreement. It did not provide regular monitoring and reporting the
progress (Meehan, Menzies & Michaelides, 2017). However, developing policies guidance
regarding the approval of the key changes to risk information is recorded and implementing the
mechanism that ensures compliance with the policy. It is needed to ensure the specific key
changes made to information recorded in the risk registers. It is required to present to the
governance committees. It is required to highlight and disclose to the particular committee
(Manthou, Bialas & Stefanou, 2016). Deploying a mechanism making sure consistency in the
information recorded in the risk resisters as well as enhancing the associated policy guidance is
the responsibilities of procurement manager for satisfaction and successful project.

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Part 4: Summary of common themes
Gee, Weaver and MacKerron (2017) mentioned that project managers are involved in the
process of negotiations with several project stakeholders consisting of supplier, distributors as
well as regulatory bodies. In healthcare, the procurement manager requires to buy clinical
equipments, medicines as well as services at the best possible way and cost that encounters
safety and health requirements of patients. It has been advised by SA Health that new Royal
Adelaide Hospital procurement work stream has been currently developed in more effective
contract management procedure (Islam et al., 2018). In addition, development of formal robust
procedure for monitoring the progress in key aspects of the project is crucial. It is also essential
to develop and implement an effective communication strategy and development of effective
internal communication strategy for the issues associated with the clinical involvement is one of
the major responsibilities of procurement managers. The process improvements are essential for
approving the key changes to the risk information as well as making highlight of the changes to
the committee of project management and ensuring the consistency of the information recorded
for supporting the risks registers.
The procurement work stream is generally progressing execution of contacts and
procurements for the projects. The procurement manager need to focus on the process and
resultant financial commitment that are initiated in the absence of formal approved budget
because of the costs and without oversight of the specific committee (Budgett, Gopalakrishnan
& Schnelle, 2017). In addition, defining as well as documenting the key milestones to report the
purposes as well as the PPP Contract Administration provide regular reports of the progress
made in encountering the targets are the responsibilities of procurement managers in the new
Royal Adelaide Hospital project (Kautsch, Lichoń & Whyles, 2015). Development of details

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models with clinicians as well as documenting in a structured way processed by the procurement
managers can assist for satisfaction and successful project.
The above study concludes that contract management has a significant role in the new
Royal Adelaide Hospital project as the project involves with effective communication as well as
sharing knowledge of the existing PPPs, which is difficult to the process of enhancing and
greeting success in the project. On the other hand, effective procurement management in the
project involves the procedure of selecting the vendors, developing payment terms, selecting
suitable staffs for the projects. In addition, it helps in strategic vetting, negotiating contracts as
well as actual buying of the products. Hence, it is important to pursue effective contract and
procurement management, as it would be helpful to acquire the products, services and fulfill
target of the project.
Part 5: Reflection
The modules are helpful to understand the financial aspects of procurement and assist in
reviewing the cost of procurement. In addition, the module helps me to identify the financial
aspects as well as contracts along with inter-decencies with the risks. The risks/ mitigations as
well as opportunity creation through enhanced contract management can be explored with the
help of this module. The judgment as well as initiative for participating in the discussion board in
order to clarify the process of procurement as well as financial aspect of complicated projects
and discussion as well as framework against the new Royal Adelaide Hospital case study is
obtained through the third module. It helps for better understanding the remaining procurement
as well as financial risks and themes required for critical review.

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The fourth modules helps in better understanding the key procurement documentation,
limitations as well as contract negotiation aspects. It explores the standardized procurement
documentation as well as standard contracts. Participating at individual as well as group to
unpack the complicated issues for the case study is achieved. In addition, I can apply judgment
and initiative for participating in the discussion board in order to clarify the procurement
limitations as well as negotiation procedures. The ideas can be exchanged along with
dissemination of knowledge.
The fifth module helps me to learn regarding the performance-based contracting model as
well as exploring its relevance at the time of procurement execution as well as closeout phases. It
helps to comprehend the significance of developing performance criteria and the process of
measuring as well as the key contractual terms and conditions. The strategic aspects of contract
administration as well as the role of facilitating the effective contract management can be
analyzed with the help of this topic.
The sixth module assists me to comprehend the significance of relationships of
complicated projects as well as reinforce the key procedures that will make sure effective
procurement. In addition, I have learnt about the ways to manage relationships with the suppliers
as well as vendors within bounds of ethics as well as transparency. It assists in understanding the
supplier development strategies as well as sharing the best practices of strategic supplier
development.

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References
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projects fail? An analysis of the Healthcare. gov website. Government Information
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hospitals in Australia and Costa Rica–a comparative case study. Health Systems, 6(1), 56-
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