PROJ6004: Contracts and Procurement Analysis of RAH Project

This report provides a comprehensive analysis of the Royal Adelaide Hospital (RAH) project, examining various aspects of its lifecycle, including procurement, contract management, and risk mitigation strategies. The report delves into the current status of the project, uncovering complexities related to stakeholder management, standardization of safety measures, and the integration of new medical facilities. It highlights the importance of leadership qualities and governance in managing project work streams and addressing financial and human resource challenges. Furthermore, the report identifies key risks such as project delays, cost pressures, and contractual complexities, proposing mitigation strategies for each. It also explores best practices in PPP procurement, emphasizing the roles of project and procurement managers in ensuring stakeholder satisfaction and successful project outcomes. The document also includes a reflective journal, summarizing key learnings, changes needed, and dependencies that impacted the project.

Running head: CREATION OF MODERN HEALTH-CARE FACILITY
Creation of modern health-care facility
Name of the Student
Name of the University
Author Note:

CREATION OF MODERN HEALTH-CARE FACILITY
Table of Contents
Part A:..............................................................................................................................................3
Life Cycle....................................................................................................................................3
Current status of the project.........................................................................................................4
Uncovering complexities.............................................................................................................4
Leadership qualities and governance...........................................................................................5
Part B...............................................................................................................................................6
Identification of the risk...............................................................................................................6
Risk Mitigation............................................................................................................................6
Learning of the project.................................................................................................................7
Need for changes.........................................................................................................................8
Dependencies...............................................................................................................................8
Part C:..............................................................................................................................................8
Best Practices of PPP procurement..............................................................................................8
Role of Project Managers............................................................................................................9
Role of Procurement Managers.................................................................................................10
Part D: Reflective Journal..............................................................................................................10
Reference.......................................................................................................................................13

Running head: CREATION OF MODERN HEALTH-CARE FACILITY
Part A:
The notable determination of the paper is to focus on the creation of a big public private
partnership hospital in South Australia. The new Royal Adelaide Hospital (RAH) is the largest
social infrastructure project is taken by the Australian State. The new facility which are proposed
to be built shall be maintained by the non-medical services and equipment’s using the PPP
arrangement. The total valuation of the project is 2267.2 million AUD. The new facilities will be
having 800 beds, 700 multi-beds, 100 same data beds, 40 technical suites. The location of the
hospital is in the corner of the Port Road and North Terrace in the city of Adelaide.
Life Cycle
The life cycle of the project will be considering these following aspects
Figure 1: Life Cycle Journey of the project
Source: Created by the author
RAH
Project
Governance
Assurance
processes
Business
planning
Risk
Management
Financial
Management
Procurement

CREATION OF MODERN HEALTH-CARE FACILITY
Current status of the project
The current status of the project states that the project is running way beyond schedule.
However, it can be said that the design part of the project has been already completed. The
construction works are going well in this project as well. DTPI is playing a huge role in the
planning, transportation and infrastructure (Holzhacker, Krishnan & Mahlendorf, 2015). The
current status of the project states that the project is at the risk of delay regarding the deployment
of the clinical equipment’s. The facility modifications of the project are also needed to be
revised so that professionalism is maintaining in the working schedules of each of the
stakeholders of the project. There are lots of contamination risks associated with this project
which can have a negative impact on the project as well.
Uncovering complexities
There are lots of complexities associated with this project is the role of the strategic
drivers. The standardization of the safety measures are the other complexities of this project.
Access through multiple entry points within the project as it involves numerous stakeholders
from all over Australia is the other complexity associated with this project (Handfield et al.,
2015). The management of each of the stakeholders associated with this project according to the
current market trend of Australia in the construction industry is the other challenge associated
with this project.
The incorporation of the new medical facilities will be very much helpful for the
consumers of this organization, it will also have a positive impact on both the market reputation
of the organization as well as help the organization to grow among all the similar organizations.

CREATION OF MODERN HEALTH-CARE FACILITY
New organizational values are needed to be implemented in the working environment of
RAH so that the desired results are obtained by the end of this project. The employees working
in this organization should be adopting well with the new sets of rules and the new working
procedures. New healthcare plans must be understood by both the internal as well as the external
stakeholders of the hospital (Iossa & Saussier, 2018). From the organizational perspective, it can
be said that the project must be contributing to encourage new practices, training and design. The
quality of service offered by the organization must be improved after the successful completion
of the project. The quality of service must be aligning well with the future business strategies of
RAH. Post disaster recovery and optimizing the use of the technology is the other important
aspect of this project.
Leadership qualities and governance
The leadership qualities of each of the internal, as well as the external stakeholders, are
needed to manage the work streams of RAH. Complexities of the procurement and supply chain
management are managed in the first place so that there are no further delay in the scheduling of
the rest of the phases of this project (Edler et al., 2015). Management of the financial as well as
the human resources is also desired from the project managers, at the same time it can be also
said program director is also responsible for the PPP contract administration.
Leadership qualities of each of the work streams such as Communications and ICT for
delivering of the packages. Leadership qualities of the operational manager will be very much
important regarding the successful completion of the project (Jarkas & Haupt, 2015). Leadership
is also very much important for the management team of RAH in order to manage the
complexities of the project.

CREATION OF MODERN HEALTH-CARE FACILITY
Part B:
Identification of the risk
There are different types of risks associated with this project such as delay risk, technical
risks, risk related to modifications of the project, addressing to the identified risks are the other
risk associated with this project. Managing each of the resources and managing the complexity
of RAH are the other significant risk associated with this project (Doloi, 2015). Designing and
construction of the hospital facility are the other risk associated with this project. The contractual
arrangements between each of the stakeholders of the project have numerous complexities.
Industrial disputes, training of the staff, cost pressures, maintaining a sustainable model of care,
aligning with the State's health care policy and the creation of the future strategies are the
significant risks associated with this project (Ji, Huang & Grossmann, 2015). The above-
discussed risks can be very much beneficial for identifying the probable risks which are
associated with most of the construction projects. The following unit of the paper will be very
much essential to understand the mitigation strategy of each of the identified risks of this project.
Risk Mitigation
Risks Mitigation Strategy
Project Delays Setting realistic deadline scan be helpful to
address this risk.
Cost pressure Cost Benefit Analysis and Contribution
Analysis can be very much important ti
understand the cost required in each phases of
the project.
PPP contractual and financial exposure Risk mitigation mechanisms can be very
much important to deal with the complexities
of the contractual agreements. Management
of the net cash flow can be very much
important to mitigate the risk of financial
exposure.

CREATION OF MODERN HEALTH-CARE FACILITY
Industrial disputes Joint consultations between each of the
stakeholders can be beneficial to address the
issue of industrial disputes.
Inadequate delivery of ICT systems Selection of the appropriate vendors and third
party can be very much important to deal
with the delay of the delivery of the required
ICT systems in RAH.
Co-ordination issue of services and patients The introduction of the care-coordinator can
be very much important to deal with the co-
ordination issue between the stakeholders of
RAH.
Lack of training and staff Digital training sessions in between working
schedules can be very much important to
resolve this risk.
Inadequate delivery of benefits and outcomes Risk avoidance and exploiting the risk can be
the mitigation process for each of these
identified risks.
Alignment issue of healthcare policy of the
state
Improving the cost and the quality of service
can be important to deal with healthcare
policy of RAH. The health care employers of
RAH can play a leading role to resolve the
complexities of the healthcare policy.
Table 1: Mitigation strategies for each of the identified risk
(Source: Created by the author)
Learning of the project
The possible learning of this project is the uncertainties of the project such as the
unavailability of the raw material and the different types of risk which restricts the growth of this
project (Petersen et al., 2019). On the basis of the new program it can be said that a detailed view
of the plan can be managed in an organized manner. It can be also said that there is an
independent relationship between the ICT systems and the stakeholders of RAH (Rendon &
Rendon, 2016). The problem of the insufficient labor can be resolved successfully with the help
of a professional selection process in each phase of the project such as the selection of the raw
materials and the providers of the ICT systems (Mahapatra et al., 2016). Completeness in each

CREATION OF MODERN HEALTH-CARE FACILITY
phase of the project can be very much important to manage each of the identified risks of this
project and make this project a successful one.
Need for changes
The role and responsibilities of each of the project resources can be managed with the
help of the Resource Management Framework (RMF). The RMF can be very much useful to
manage each of the resources based upon their availability (Saussier & Tirole, 2015). The
challenges of the contractual agreements can be also very much important mitigated with the
help of the RMF.
Dependencies
Contract modifications can be very much important to manage the changes in the
procurement process, it can be determined that the internal dependency of the project in terms of
the relationship between each of the stakeholder of the project and the other activities of the
project can have a significant impact on the successful completion of the project (Sumo et al.,
2016). The external dependencies of the project in terms of the selection of the correct ICT and
selection of the available resources can also have a direct impact on the completion of the
project.
Part C:
Best Practices of PPP procurement
Based on the audit governance report of RAH it can be said that the project can be
governed and managed in a professional manner with the help of the RMF. The desired hired
level satisfaction of the consumers of the organization can be determined with the help of the
management of the procurement of the project. It can be also said that the business uncertainties

CREATION OF MODERN HEALTH-CARE FACILITY
of the project can be was not professionally calculated by the prime stakeholders of the project,
as a result, the project was delayed and overhead costs could not be managed (Tumuhairwe &
Ahimbisibwe, 2016). The expected expenditure was below the actual expenditure in this project.
Cost pressure was felt after the incorporation of the ICT systems in RAH. Thus it can be said that
the effectives of the decision making is questionable for the senior management team of RAH.
The contingency information which was circulated among both the internal as well as the
external stakeholders of the project was not very much reliable in nature (Bernstein, 2015). The
scope of improvement is still there for RAH so that they can put aside all the complexities they
have been facing in the designing phase of this project.
Role of Project Managers
The role of the project managers, as well as the procurement managers, are very much
important to mitigate the identified risks of this project. The identified risks of this project can be
mapped with different stakeholders of the project considering the cost, time and scope
(Ramkumar, Schoenherr & Jenamani, 2016). The task allocate for each of the stakeholders of
this project should be managed by the project managers. The management of the minister of
health and making the entire procedure aligned with the Public Sector Act of 2009 is the real
challenges for the project managers in this scenario. The project managers should be aligning the
SA health partners with the subcontractor agreements of the Builder, ICT services and the
facility manager of the project (Selviaridis & Wynstra, 2015). The contractual arrangement
should be revised so that the cost affected with the project can be controlled. The project scope
and the project variation can be also controlled with the help of the project manager, it can be
also said that the project managers can play a huge role in maintaining clarity in the project
(Strahorn, Brewer & Gajendran, 2017). The financial management of the finite resources of the

CREATION OF MODERN HEALTH-CARE FACILITY
project can be also done in a professional manner with the help of the project manager of the
project, at the same time it can be also said that the deliverables of the project can be also done in
a professional manner with the help of the project manager of RAH. The management of the
installation of the state-funded furniture's can be also managed by the project manager of RAH
(Ding, Sarikprueck & Lee, 2015). The risk management practices of the project managers can be
very much improved with the help of the project managers of RAH. The desired level of
communication between each of the stakeholders of the organization can be managed with the
help of the project managers.
Role of Procurement Managers
The risk management activities should have been also controlled with the help of the
procurement manager as well as the project manager. The procurement manager must be
addressing the logistics associated with this project so that the project can be completed within
the rest of the available financial resources (Beraldi et al., 2017). The cost associated with the
suppliers of this project has to be reduced by the procurement managers in such a way so that the
bargaining power of the suppliers is contained. Development of the purchasing strategies by the
procurement managers can be also very much important regarding the management of the
budgetary and the other operational requirements of the company (Fleming, 2019). The
installation of the clinical equipment’s can be also managed with the help the procurement
manager. The PPP relationships can be also maintained with the help of the leadership
capabilities of the procurement managers of RAH.
Part D: Reflective Journal
This section of the paper will be discussing the reflective journal based on the knowledge
gather in module one and module two. The detailed analysis of module one and module two is

CREATION OF MODERN HEALTH-CARE FACILITY
very much helpful for me to understand the complexities associated with a business organization.
The background of the project can be understood from the paper which presents each minute
details of the projects in terms of the location of the project, funding’s of the project, and the
strategic values of the project.
The modules were very much important to understand the functionality of a business
organization. These modules can have a positive impact on my career as well as I have gathered
a huge amount of knowledge from these modules. I have understood the complexities of the
internal and external stakeholders of the organization as well the roles and responsibilities of
each of the stakeholders. I believe that the contractual agreements can be very much important to
manage each of the stakeholders of any business. The roles and responsibilities of different types
of managers such as the procurement manager and the project manager can be also determined
from the modules. The detailed description of each of the activities can be understood from the
paper as well. The module was also very much useful to understand the importance of leadership
skills such as decision making which are required in each of the activities of the whole event.
The organizational issues which are faced by each stakeholders of the organization can be
understood in an organized way with the help of this module. The importance of project
governance in bigger projects was understood from the paper as well. The module can be very
much important to understand the business complexities of a project. This model has helped me
to gain huge amount of knowledge about the life cycle events of a project such as the project
governance, assurance process, business planning, risk management, financial management and
the procurement. Insights of the complexities of a project such as the allocation of the resources,
management of the scope of the project. The importance of maintaining the quality of service
even after numerous complexities would help me grow as a professional. The qualities of the

CREATION OF MODERN HEALTH-CARE FACILITY
procurement manager as well as the project manager can be also obtained from this module as
well. The model was very much important to understand the effective attributes of the public
private partnership in complex projects.
The module is very much important to understand the risk identification techniques in
complex projects, at the same time it can be also said that the risk mitigation strategy of each of
the identified risks can be also helpful for me if I want to pursue my career as a manager of a
bigger healthcare organization. The concept of change management was also understood from
the paper as well. This module is very much beneficial for me as it discussed the probable
dependencies of bigger projects. Thus, the best practices of the PPP procurement can be
understood in a professional manner from the module.