Effective Contract And Procurement Management: A Case Study Of The New Royal Adelaide Hospital Essay.

Assessment context is about exploring the benefits of performance-based contracting to develop performance criteria, monitoring processes, contract terms and processes that ultimately achieves a strong focus on performance outcomes and behaviours. It builds on Assessment 2 by using the ideas and issues raised by blackboard discussion to identify key issues that can be consolidated by the Groups to achieve focussed actions for performancebased completions effort. Assessment 3 also builds on contract management by improved understanding of supplier and client relationships to deliver certainty of outcomes and improved value for all stakeholders.

Individual/Group Report based on a study of the performance-based contracting model(s) and how this has been applied on complex projects and suggestions as to how this could be applied to the Case Study example (new Royal Adelaide Hospital).Students will also discuss key performance criteria, performance monitoring, contract terms
that drive performance outcomes and associated contract administration, contract management and the contractor’s role in management of project constraints.

Assessment 3 will be undertaken progressively through Modules 5 and 6 and will involve an Individual/Group Report or PowerPoint Presentation that considers, where appropriate, aspects below:
Performance drivers and performance-based outcomes;
Procurement management and completions effort that is vital to ensure successful delivery of projects;
Relationship management, ethics, transparency and other effective contract management processes;
Importance of completions documentation, project closure and lessons learnt;
Specific roles and responsibilities of project manager and procurement manager including in supplier development as part of completions effort or throughout the project life cycle (as appropriate).

Functions of tangible contract management

Zhang (2016) stated that there are several functions of tangible contract management, which assists in managing obligations of an organization in an effective way. The process saves efforts as well as time of both parties.  In addition, it has ability to dictate multiple aspects of the key business strategies of a business organization. There are multiple contractual parties who like to spend time and resources.

Hence, the documentation of the procurement provides an important input and output process that ensures effective and fair bidding. In addition, the proposals of suppliers as well as ensuring accountability and performance are achieved by the process. The study covers the significance of contracts and procurement in order to mitigate the risks related to the case study. On the other hand, the best possible practice of contract and procurement procedure of the enterprise as well as responsibilities of procurement management to satisfy as well as successful projects are described in the study.

Effective procurement planning and adoption of an effective procurement leads in making better value for money of the organization continuously. It delivers high quality projects as well as reduces risks for the organization. The planning involves analysis of the procedure of supply market that is working as well as assessing the risks and the best practices of the organization as the strategy of procurement (Pecherskaya et al., 2016). Development of new Royal Adelaide Hospital has been chosen in the study as the case study. In this project, a PPP arrangement was made between the state government and SA health partnership private limited. In this perspective, it becomes important in defining the risks related to the particular project as well as take effective contract and procurement strategy for the project.

 Risks related to new Royal Adelaide Hospital

A project with substantial procurement component requires efforts thorough effective project management. It ensures that the contracts meet the demands and issues related to the project plan. The approach of contract is based on performance of the organization. Hence, implementing contracts as well as procurement enhances reliability, availability as well as certainty of the delivery (Jia & Bijman, 2014). It minimizes costs of ownership where the purpose of the project is development, maintenance, financing as well as non-medical services and equipment that are used by the organization using Public Private Partnership plan. The collaboration is developed between the state as well as SA Health Partnership Private Limited as the selected model. Hence, it is important to define the risks associated with the project and process effective contract and procurement management for the project.

Significance of contracts and procurement in mitigating risks

However, the project arrangement is not completely comprehended by the Committee and the governing committee. It makes risks in the project and results not delivering the project as planned before. Development of proper contracts and procurement plan for the hospital will be useful in order to deliver the project. The lack of suitable as well as effective contract management framework for clinical procurement makes a significant impact on the process. Reviewing the status and professional services offered by the organization is important to consider (Amoah & Shakantu, 2017).  Hence, the opportunity to enhance contract management practices with the help of documentation that an officer had for ensuring compliance with specific clauses of PPP project.

Bolandifar, Kouvelis and Zhang (2016) mentioned that there are opportunities, timing as well as risks of costs is related to the project. Thus, crystalizing the project as well as settling down through commercial process is important. It is required to report to procurement board of the state on specific status of clinical procurement management. Lack of report provided to the Committee about the process developed for installing the clinical equipment agreed to the Master Work Program. The information provided to the Committee did not report the main risks and status of procurement and installation process in the State meeting the time frame preferred in the project management.

Recommendations for contracts and procurement management

In order to overcome the risks, it is important to ensure a robust framework. It is required to approve and deploy in the project. The documentation of the procurement gives an important input and output process ensuring fair bidding (Bird & Wearne, 2017).

SA Health requires finalizing the work undertaken to develop a structure for providing independent assurance. Deploying quality assurance review of the monthly iPMO reports, which are provided in order to govern the committee ensuring the proper information. Formal review and approval of the membership in terms of reference for the board of operation is vital. It is important to define and document the key milestones for reporting the purposes of PPP contract work steam into single report that makes sure regular preparation of the process.

Grimsey and Lewis (2017) stated that finalization of developing and implementation of JIRA system and associated process can be helpful with effective management as well as tracking ICT procurement in the current project. On the other hand, development as well as implementation of the procurement status of ICT services can assist the process. SA health needs to finalize and approve the draft strategic management and acquisition plan, which is important for procurement of ICT services. It can be recommended that SA health ensure approval to revise the approved procurement approach that requires supporting and properly documented.

Recommendations for contract and procurement management

The procurement plays a significant role in managing the parties of contract obligations. However, the tool that key strategies and activities are helpful for supporting the procedure of compliance with the particular issues of arrangement. It is required to ensure that the key changes made to the information are recorded in the risk register. Development of a mechanism of ensuring the consistency for the information recorded as well as deploying the mechanism that makes sure specific changes are made to the information recorded in risk registers (Siciliano & Urban, 2017). It is important to have the committee for governance and highlight as well as disclose the committee.  Hence, effective policy of mechanism ensures that consistency in the information that are recorded in risk registers and improving the policy guidance that are responsibilities of procurement managers to satisfy and get successful projects.

However, it is required to ensure that the clauses in the contract do not prevent from claiming the damages in the particular event. Hence, including the terms in the vendor contracts will be significant for satisfying the parties as well as lessening the risks of the process (Regan, Love & Jim, 2015). It is required to ensure that the terms of the contract need to fulfill the demands of partnership. Therefore, it is required to focus on the process and take effective strategies to mitigate the issues.  

Summary of common themes

 The project managers are engaged in negotiation with multiple stakeholders including suppliers, regulatory bodies and distributors. In the healthcare industry, it is required to purchase clinical equipment, medicine and other services. In requires to be performing in the best possible way as well as costs that meet safety as well as health demands of the patients (Liebman & Mahoney, 2017). The detailed process development with the help of clinicians and documentation in a structured method can be processed through procurement managers who can help them to get satisfaction as well as successful project (Nojavan et al., 2015).

A contracting as well as role of procurement role in the current project helps in supporting the exploration of projects and learning the process of collaboration with highly skilled as well as experienced professionals. Casting influence on the areas of business is important to be creative and develop the relationship.  

According to Loader (2016), it is important to be part of membership as well as support the diversity, social responsibility as well as collaboration. As the contracting and procurement manager for new Royal Adelaide Hospital project has an important role, it is important to focus on the strategy and implement the process in the project. However, it requires careful oversight as well as interaction between the parties (Bröchner et al., 2016).

Summary of common themes

The statement of work can specify the demands of the project as well as service and identifies the process of getting success in the project. Specifications of items consist of the design, performance and function of the contract. Testing as well as schedule of inspection can identify the dates when the services and products are available to the purchaser (Li, 2015). The most significant term of the process can specify the products and services that are provided by the vendor. Owning the products is generally created as the outcome of partnership. On the other hand, it is required to specify the process of creating provision of the service as well as products.

Goggins (2018) mentioned that contract management has an important role in the project of new Royal Adelaide Hospital as it deals with effective communication and sharing knowledge. It is also difficult to improve and get success in the project. However, effective project management in Royal Adelaide Hospital project involves the selection of vendors, development of payment terms as well as selection of suitable staffs for the particular projects. The process is helpful in managing strategic vetting, negotiation of the contracts and procurement management.

 Reflection

The modules can understand the financial aspects of procurement as well as help the process of reviewing the cost and time of procurement. It also assists in identifying the financial aspects and contracts with the inter-decencies with risks. However, the mitigation strategy and opportunity of creating improved contract management can be helpful to the process. The judgment and initiative to participate the process of discussion board is helpful in managing the project successfully. On the other hand, effective framework can assist in understanding the procurement process and understand the risk factors involved with the project. However, there are several issues involved with the project for which it is required to take effective steps to overcome the issues and get potential benefits.

The fourth module assists in understanding the key procurement documentation and limitations along with the aspects of negotiation. The standardized procurement documentation can be understood properly with the module. Participation as individual and group in order to unpack the issues for the case study can be understood with the module.

On the other hand, the fifth module assists me in learning the performance-based contracting model and relevance of the procurement execution and the phases of closeout. The significance of facilitating effective contract managements is analysed with the topic. In addition, the strategic aspects of contract administration and facilitation of effective contract management.

Reflection

The sixth module is helpful to understand the significance of relationship of complicated projects and reinforce the key process that ensures effective procurement. Management of effective relationship with the suppliers and vendors with the ethics and transparency can be performed through proper understanding the module.

References

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Bird, R., & Wearne, S. (2017). Contract structure for nuclear power projects. Proceedings of the Institution of Civil Engineers-Management, Procurement and Law, 170(3), 131-137.

Bolandifar, E., Kouvelis, P., & Zhang, F. (2016). Delegation vs. control in supply chain procurement under competition. Production and Operations Management, 25(9), 1528-1541.

Bröchner, J., Camén, C., Eriksson, H., & Garvare, R. (2016). Quality and legal aspects in public care procurement. The TQM Journal, 28(4), 648-663.

Goggins, G. (2018). Developing a sustainable food strategy for large organizations: The importance of context in shaping procurement and consumption practices. Business Strategy and the Environment.

Grimsey, D., & Lewis, M. K. (2017). Implementing a partnership agenda: Evaluating Public–Private Partnerships and Other Procurement Options. In Global Developments in Public Infrastructure Procurement. Edward Elgar Publishing.

Jia, X., & Bijman, J. (2014). Contract farming: Synthetic themes for linking farmers to demanding markets. In Contract farming for inclusive market access (pp. 21-38). FAO.

Li, W. (2015). The Public Service Providing of Government Procurement: Contract First. Reformation & Strategy, 3, 008.

Liebman, J. B., & Mahoney, N. (2017). Do Expiring Budgets Lead to Wasteful Year-End Spending? Evidence from Federal Procurement Online Appendix.

Loader, K. (2016). Is local authority procurement supporting SMEs? An analysis of practice in English local authorities. Local Government Studies, 42(3), 464-484.

Nojavan, S., Mehdinejad, M., Zare, K., & Mohammadi-Ivatloo, B. (2015). Energy procurement management for electricity retailer using new hybrid approach based on combined BICA–BPSO. International Journal of Electrical Power & Energy Systems, 73, 411-419.

Pecherskaya, E. P., Averina, L. V., Kochetckova, N. V., Chupina, V. A., & Akimova, O. B. (2016). Methodology of contract managers’ project competency formation in CPE. International Electronic Journal of Mathematics Education, 11(8), 3066-3075.

Regan, M., Love, P. E., & Jim, J. (2015). Public infrastructure procurement: a review of adversarial and non-adversarial contracting methods. Journal of Public Procurement, 15(4), 405-438.

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