New Royal Adelaide Hospital: A Public-Private Partnership For Modern Health Care Facilities, Essay. (70 Characters)

Life Cycle Journey of the Project

Question:

Discuss about the Procurement Of New Royal Adelaide Hospital.

The new Royal Adelaide hospital is one of the largest social infrastructure project which has been taken up by the State. This hospital is equipped using the Public Private Partnership agreement. This agreement is signed by the State and the South Australia Health Partnership Pty Ltd. (Project Company). The hospital aimed to turn their status from large scale public private partnership hospital to modern health care facilities provider. In order to procure this project, the complexity, costs etc. aspects became difficult to manage. Further talking about the lifecycle of the project, it should be noted that the lifecycle journey of the project is going well; the management of the company has designed systems that are adequately contributing to the growth of the project. Efficient decision making systems and processes are timely reviewed by the  management which provides greater scope of growth to the hospital (Kerzner, & Kerzner, 2017). The ongoing journey of the PPP project is progressing in different phases and helping the hospital to achieve milestones as well. Till date the journey of the project is going well but it is expected that the project might face issues related to governance or cost which can also affect the growth of the project (Burke, 2013).

The current growth of the project is expected to go well but the hospital might face some issues in its progress as they are currently facing delay from the expected plan. The construction and design facilities are going well and are expected to get completed on time but the acquirement of clinical equipment and Information Communication Technology faces the risk of delay. Due to this incident, the following plan is also facing delay due to which completion of the whole event also might face delay. Additionally the external State funded works are also going well as they are being managed by the Department of Planning, Transport and Infrastructure (DPTI). Apart from progress in the project, they department is also facing some issues in managing the flow of work (Schwalbe, 2015). The project is progressing through a serious phase as it is transitioning with the designs and construction phase. As the project is multifaceted due to which it became difficult for the  management to co-operate with the employees and motivate them to complete the task efficiently. As discussed above that the hospital attained the clinical facilities and ICT lately due to which the projected plan delayed. The project also faced the containment claims due to which the hospital had to provide settlement amount along with remediation as well (Meredith, & Mantel Jr, 2011).

Challenges Faced by the Project

Further in order to govern the case, assurance framework was identified by the  management advising the ways in which the new RAH project shall be implemented without facing barriers in the growth. The framework was presented to committee which explained the roles and leadership of iPMO (Integrated Program Management Office). This process increased the governance on the project; it also exposed the risks and provided mitigations to appropriately resolve them. In the current scenario, this process greatly helped new RAH to cut the whole life cost and efficiently resolve the challenges present in the environment (Anantatmula, 2010).

As this project is based on the contract between two parties due to which it is more exposed to risks. The contractual arrangement transferred risks in the construction and design of the project which impacted the growth of PPP. Further the risks faced by the hospital in initiating the project are discussed below:

• Project delays: The project faced delay in procuring material to initiate the follow up actions for the plan. The management expected to attain the clinical resources and machines at a fixed time, but they were procured late due to which the follow up actions of the project were also completed late. Thus, this acted as a major risk for the company as the delay in procurement impacted the growth of the whole project (Clarke, 2010). Unavailability of information technology stopped the growth of the whole implementation plan. Further project delays, delayed the completion of the whole project due to which the contract terms were breached. This breachment acted as a risk for the new RAH project.
• Cost pressure: The State funded around $5.8 million for the project, but the management of the hospital did not worked according to the framework presented to the committee. The budget went underspent due to which the project review noted the cost pressure in delivering the ICT services by new RAH. Further, it was also noted by the auditor that a sum of $9.6 million was an unfunded budget cost which was questionable for the company. This, unknown cost pressure increased the risk factor for the company (Martinelli, & Milosevic, 2016).
• Insufficient training of staff: It should be noted that the new information communication technology system was introduction in new RAH so as to increase the efficiency of the projected plan. But the employees who were handling the project were inefficient to the projected technology due to which the plan faced difficulties. The employees were not trained enough to handle the project, and ironically the whole project was based on innovation and use of new technology. So, resulting to which the success of the plan became impossible task (Yang, Huang, & Wu, 2011). Thus, the employees working in project itself became a threat for new RAH.
• Industrial disputes: A dispute arose between both the parties who were a part of the contract. Due to cost pressure activities, the State lost the trust from the new RAH due to which industrial dispute arose and affected the growth of the project. Further, there was delay in the delivery of services to the hospital due to which risk attracted with the company (Aga, Noorderhaven, & Vallejo, 2016).

Apart from the risk attracting the growth of the project, it also included certain dependencies based on the contract. The new RAH information technology program was process by working with the ICT enterprise in order to attain a detailed and authentic view of the plan. Thus this process created an interdependent relationship of RAH on the ICT enterprise. As discussed above, that the company faced the risk of inefficient labour for the process due to which many different organizations were hired at differ levels of the project so as to provide completeness to the event and make its successful as well (Turner, 2016).

After facing risks and challenges, a framework was designed and presented to the committee for the latter formulation of the project, for which efficient and effective resources were used from outside. Thus, at many areas contractual relationship with different companies was organized so as to succeed in the PPP event.

The audit governance report included observations about the project governance, budget, procurement, risk management, contract administration etc. Through the governance of project it was review that the project was governed appropriately with the use of framework. The committee properly identified the flaw in the framework and corrected it in order to attain higher level of satisfaction. The business case was not completely monitored by the SA Health. Also there was a scope of improvement by the e Project Director to SA Health. Analyzing the budget, it should be summarized that the budget was not correctly made and implemented (Mignone, Hosseini, Chileshe, & Arashpour, 2016). There issues in the finance report due to which there was a different between the expected and the actual amount of expenditure. The RAH ICT program faced cost pressure. But the scope of ICT worked in the program and it positively affected the activities in the project. The contingency information which was provided to the committee was insufficient due to which effectiveness of the decision of committee lost its scope. Further, there was scope of improvement in the process of documentation. The risk management activities were improved with the introduction of the framework (Barnett, Cross, Shahwan-Akl, & Jacob, 2010). As the evidence related to risk were provided to the committee due to which their decisions became efficient and effective for the completion of the project. The in process of contract management lack of framework made it difficult for the officials to comply with all the contract related documentation. Further one of the most important key observations is that the State agreed to pay Project Co $68.6 million in exchange of the claims of the deed. Against the claims imposed on the hospital, the remediation settlement was made by paying $23.8 million (New Royal Adelaide Hospital report, 2015).

Audit Governance Report

Additionally talking about the best practices, it should be noted that the contract management appropriately acquired the strategic acquisition plan in order to succeed in their program. The best practices are those which resolve the challenge faced by the management in completion of the project and reduces the amount of risks as well (Hill, & Bartol, 2016). For the procurement purpose, the management should prepare a forecasting report which should explain all the resources which are to be procured by the management. The employees should work according to the plan identified by the committee and it is the responsibility of the employees to inform the committee about all the issues and working of the project (DuBois, et. al., 2015). Talking about the roles and responsibilities of a project manager, it should be noted that the manager schedules the events and plans them accordingly. He also assess and manage the risk in a way that the budget is maintained and while costs are reduced. They also initiate communication in the organization and ensure that quality is not waived by any employee in the organization. Lastly, it should be noted that project management activities are fundamental to successful supply chain initiatives as the process of project management offers a good procurement plan for the proper execution of the project (Walker, 2015).

From the analysis of the module 1, 2 and 3, I came to know about the ways in which an organization works. These modules provided me learnings which will definitely help me work as a professional in the external environment. The purpose of the module one was to introduce contracts and procurement process in the system. Information about contracts helped me to gain knowledge about the ways in which a contract should be adhered by two parties. A contract is only binding rule which connects the activities of two parties and on the basis of which one party can raise a claim on the activities of other party. Further, the procurement process helped me to understand the whole functioning of the event. As procurement is one of the more important aspect in a project, so the procurement process of the PPP project of New Royal Adelaide Hospital helped me in attaining information and step by step activities of the whole event. Project governance, leadership, organizational issues were just terms before the introduction of this module. But with the help of this module I gained in depth analysis of the whole process. Lastly, in my personal context, research and analysis are two most important aspects in the life of a professional and by studying these modules I gained the ability to evaluate the event and present a materialistic report as well.

References

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Anantatmula, V. S. (2010). Project manager leadership role in improving project performance. Engineering Management Journal, 22(1), 13-22.

Barnett, T., Cross, M., Shahwan-Akl, L., & Jacob, E. (2010). The evaluation of a successful collaborative education model to expand student clinical placements. Nurse Education in Practice, 10(1), 17-21.

Burke, R. (2013). Project management: planning and control techniques. New Jersey, USA.

Clarke, N. (2010). Emotional intelligence and its relationship to transformational leadership and key project manager competences. Project Management Journal, 41(2), 5-20.

DuBois, M., Hanlon, J., Koch, J., Nyatuga, B., & Kerr, N. (2015). Leadership styles of effective project managers: Techniques and traits to lead high performance teams. Journal of Economic Development, Management, IT, Finance, and Marketing, 7(1), 30.

Hill, N. S., & Bartol, K. M. (2016). Empowering leadership and effective collaboration in geographically dispersed teams. Personnel Psychology, 69(1), 159-198.

Kerzner, H., & Kerzner, H. R. (2017). Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons.

Martinelli, R. J., & Milosevic, D. Z. (2016). Project management toolbox: tools and techniques for the practicing project manager. John Wiley & Sons.

Meredith, J. R., & Mantel Jr, S. J. (2011). Project management: a managerial approach. John Wiley & Sons.

Mignone, G., Hosseini, M. R., Chileshe, N., & Arashpour, M. (2016). Enhancing collaboration in BIM-based construction networks through organisational discontinuity theory: a case study of the new Royal Adelaide Hospital. Architectural Engineering and Design Management, 12(5), 333-352.

New Royal Adelaide Hospital report, (2015). Report of the Auditor-General. Government of South Australia.

Schwalbe, K. (2015). Information technology project management. Cengage Learning.

Turner, R. (2016). Gower handbook of project management. Routledge.

Walker, A. (2015). Project management in construction. John Wiley & Sons.

Yang, L. R., Huang, C. F., & Wu, K. S. (2011). The association among project manager's leadership style, teamwork and project success. International journal of project management, 29(3), 258-267.