The development of the new Royal Adelaide Hospital is centred on the model of the public-private partnership (Sharma & Bindal, 2014). This project of the new Royal Adelaide Hospital can be considered as the biggest groundwork project in Australia which is initiated by the Government of Australia. For this project, a contract has been made between the SA Health Partnership Pty Ltd. and State Government. It is estimated that the successful completion of the project will be able to generate a total quantity of 800 beds in the hospital. With the 800 beds, this project will also be able to generate a standardized inpatient room (“RAH | Royal Adelaide Hospital”, 2018). Also, this project will provide technical suits of the total number of 40, and this project will provide some new emerging technologies which will be able to manage the efficiency of the supply chain management. With improvements in the supply chain, this will also confirm the efficiency of the biomedical equipment and the clinical equipment.
(Figure 1: Generalized Path of the PPP Projects)
(Source: Prezi.com)
This project of the new Royal Adelaide Hospital is very much important because it is aimed to improve the sustainable health care system of the Southern Australia and health care system will serve the general public of this area. To successfully deliver the project on time the State Government of Southern Australia has done a partnership with the SA Health Partnership Pty Ltd. Also, the Government has listed some specification to complete the project within the time thus it can be considered as the life cycle of the project (Burke, 2013). In the specification of the project some stages of the project has been described which includes the project governance, organisational structure of the mentioned project, business planning, the process of the assurance, management of the potential risks, management of the financial department, management of contract and the management of the procurement. While this project report has been written the project of the new Royal Adelaide Hospital is going through a critical stage. This critical stage implies that main construction based work of the project has been finished and with that, the design and development part of the new Royal Adelaide Hospital is going to be completed. Thus the main attention of the project moves to the operative amenities of the new Royal Adelaide Hospital.
The project has become very much complex considering the present situation as the project is running late of total 76 days (Lu et al., 2015). With this complexity, the other main thing which is making this project more complex is the health enterprise system is not developed properly for integrating it with this project. Also, the project failed to meet the other standards of the condition of the public-private partnership projects as this project has disputed in the final outcome and the tanning is insufficient for the new trainees. Other risks which making the project complex is the pressure, inappropriate delivery and improper management.
(Figure 2: Project Complexity Diagram of new Royal Adelaide Hospital)
(Source: Created by the Author)
At the time of this report, this project is facing a critical phase. The project is in the design phase of the construction process. The schedule of the project is late, and for this, the budget rises to the $2.1bn dollars.
The project organization is having its main aspects in the project resource, the value provided by the contracts, budget of the procurement, analysed risks and risk minimization policies and the timeline of the project (Harrison & Lock, 2017).
The leadership is a combined attribute for most of the projects. Thus it is also the same for the project of the new Royal Adelaide Hospital (Redick et al., 2014). The perfect leadership strategy can help to convert the operational board into the operational commissioning of the project in this case.
The governance is holding a pure positive impact on the project (Muller, 2017). The governance structure of the project solved the issue of the responsibility and the accountability related to the project. This type of governance structure is able to all the interrelated projects thus successful operational commissioning can be gained.
Every project management is required an effective risk management technique which can help to complete a project successfully. A normal project does possess a various type of risks factor which includes the project complexity, total cost of the project, scale of the project and the resource allocation technique of the project (Marcelino-Sádaba et al., 2014). In this case, the selected scheme of the new Royal Adelaide Hospital is based on the public-private partnership project model, and this is one of the main hazards for the project as it is built on the PPP model. In the context of the public-private partnership project model, the main risk associated with the new Royal Adelaide Hospital is the risk associated with the construction and the risk associated with the design of the facility of the hospital. Also, another factor of risk is the delay in the project. A delay can cause of the overrun budget of the project, and this type of the overrun case can lead the project in the path of failure (Tawil et al., 2013). The staffs who are improperly trained in this case are another risk for the project. A relocation process is also added to this project in which the old Royal Adelaide Hospital will transfer to the new Royal Adelaide Hospital. In any case, if the process of the repositioning does not maintain any type of coordination, then it will create problems in the services and in the transition process.
This is very much essential for every project to mitigate the assessed risks to maintain the smooth execution of the project. A well-developed strategy for risk management can help to mitigate the risk issues. The risk mitigation process is able to improve the project process execution (Lam, 2014). Key changes can be approved in the information by the process impartments about the risks of the project, and this key changes can be presented to the committee with proper structure and framework. This brings consistency in the set of the data which are related to the risk information. Each of the risks can be identified and can be mitigated properly by the detailed assessed information (Verner et al., 2014). In this process of the mitigation, the risks which are related to a project detailed information about the project can be gathered. The main risk associated with this type of project is the delay in the completion of the project. This type of the delay issues can be mitigated easily by the inclusion of the additional works such as the infrastructure works, ICT works and by the implementation of the clinical equipment. The risks which are related to the finance of the project can also be mitigated. In this case, the project is briefly analysed with all the major stakeholders of the project (Kerzner & Kerzner, 2017). Also, to tackle the financial issue a specific spending limit is defined. This project also includes a relocation process and in this case regulation of the new relocating place must be properly to successfully relocate to the new area.
The discussed mitigation strategy has provided some learnings towards the project of the new Royal Adelaide Hospital. These learnings described why a proper risk management strategy is required. From the project discussion, it is also assessed that the delegation is an alternative way of the effective accomplishment of the project. The process of the delegation can help to achieve the desired outcome from a project (Kendrick, 2015). In the case of this type of infrastructure project, the negotiation process plays a big role. This process of the negotiation helps to increase the project value. The brief discussion of the project has as also implied that the team management is a significant aspect in the case of the public-private partnership projects.
In this PPP project it is assessed that new risk management strategies are required and to implement these new strategies successfully some changes are required in the steering committee of the RAH (FASO, 2016). In this case, the committee takes most of the valuable decisions for the new RAH. For this case, the changes need to be done in the in the team of the strategic advisory. In this case, the delegation can be implemented by introducing the changes in the board of operations of the new Royal Adelaide Hospital. In this case, the board developed a program which is integrated for the project, but it also needs some basic modification in this case. The process of the negotiation can be implemented more effectively by constructing a good relationship with the clients and the vendors. Also, effective type of team management can be achieved by the resource modification for the manager of the project.
From both of the endings the common theme is the deadline meeting of the project. Meeting the deadline for this project is very much important because it is already running behind schedule (Sommer, Dukovska-Popovska & Steger-Jensen, 2014). Meeting the deadline is not only the effective thing but also the project must be finished with great effectiveness, the minimal dispute in the contract and with negligible defects in the project.
This type of PPP projects can be considered as the working system of the ICT enterprise programs. This is able to detect the plan in details. In this project, a strategic plan of acquisition is compulsory to constantly procure the services of the ICT. This will help to utilize the resources in a better way. Also, ICT procurements must be improved considering the new RAH.
In this article, it is described that the project of the PPP is a very good way for executing some specific type of projects. In this case, the selected PPP project was the project of the new Royal Adelaide Hospital. In this case, all the initial implementation was right, but for some specific reason, the execution of the project was not successful (Muthalagu, Cigelske & Brockman, 2014). The project falls behind the actual schedule of the project, and for this reason, the budget for the project is increased. Increasing the project budget suddenly can create financial problems in the in the economy of Australia. In this case, the SA Health implemented a governance structure to properly execute the project (Singh & Gaur, 2013). To execute the project properly, the most important factor is the management of the risks of the project. Some project related recommendation is given by the SA health by properly analysing the project.
In the context of contract management, numerous types of practices can be applied. This practices can be used to efficiently manage a project. The contracts which are made during the project can be saved over the cloud repository to ensure that the contract is safe from the external threats (Turner, 2017). In the present generation of time, the automation in the project is a big achievement. Automation in the project help to effectively manage the process of the project. Also, a performance monitor system is a great way to execute a project with utmost efficiency.
Analysing the project of the new Royal Adelaide Hospital some of the best practices for managing the procurement is assessed. The main effective practice which is assessed is the establishment of the governing supply chain and the alignment of this supply chain with the staffs (Phillips, 2013). Besides this type of implementations the other practices such as the more use of the technological things, the establishment of an alliance with some of the important suppliers and the engagement of the collaborative strategic sourcing. To get the high efficiency to form the project total cost of the ownership must be focused on.
The project manager plays a vital role in the context of successful delivery of a project. The project manager follows some specific type of roles to execute the project perfectly (Burke, 2013). In this project of the new RAH, the main goal of the project manager is to implement the project management standards. Production or the outcome of the project also needed to be managed by the project manager to successfully provide the deliverable of the project. Also, this can help the project manager in the case of the risk managing, process management and the interdependencies managing of the project. With that, it helps to adapt the various type of technical services in the project, and it helps to prepare a recommendation plan which can help the project actively. Successful delivery of the project can be ensured by that.
The procurement manager also possesses an important role in the case of successful project delivery. In this project, the key role of the procurement manager is to direct the consumers. The procurement manager can do that by evaluation of the suppliers, agreement negotiation of the supplier, taking the interview of the vendor and by managing the active contracts with the suppliers and with the vendors (Lloyd-Walker & Walker, 2015). The procurement manager is also able to analyse the report of the purchase, report of the delivery and the report of the spending to determine the performance of the project.
To elaborate on the projects based on the public-private partnership in depth the case study of the new Royal Adelaide Hospital is chosen in this case. While elaborating the case study of the new Royal Adelaide Hospital some important aspects of the project is mentioned in this case. The main aspects which are mentioned in this case are the services of the health IGT, clinical services, works for which the state government is funding, clinical equipment and the influence of the ICT. As per my opinion, the project is able to successfully establish some of the contractual obligations. The main benefit of this type of contractual obligation is that this helps to complete various types of tasks efficiently. By assessing the module, it is understood by me that the arrangements of the contractual assets it is possible to contaminate the risks which are generally related to the project. This can also be assessed by the calculation of the contamination which is already existing. At the time of this report this project is running very much late from the original schedule, and because of that issue, the budget of the project has been increased. According to me the main risk which associated with the project is the risk of the budget overrun issue. While the project is running late from its original schedule, various type of external factors will start to create more pressure on the project. By pressurizing more, the project will not be completed in the given schedule, but the project will become more dis-balanced. As the project will become more dis-balanced generally the cost of the project gradually increase. This will create more problems for the project. In such type of situation where the cost of the project is increasing unnecessarily, the project manager must take some actions to hold the project budget in a certain limit. Otherwise, it is very natural that the project is going to be failed. According to me, in this type of situation, the project manager must determine the critical path for the project. This critical path can help to determine the shortest path for completion of the project. Thus the budget overrun issue can be mitigated.
Also, both of the procurement manager and the project manager must be able to master in the process of the risk management. Also, as per my thoughts for the process of the contract management, the contract manager must be a perfectionist in the negotiation process. Thus the contract manager can negotiate the vendors of the project in a sensible amount of price, so the budget of the project does not overrun. This will help to achieve a successful contract completion. By using this method, the total profit margin of the project can be increased. Thus it will increase the total valuation of the project.
Conclusion:
From the above discussion it can be concluded that the public-private project partnership plays an important role to actively deliver a project with utmost perfection but it has also some risks related with it. In this case, the case study of the new Royal Adelaide Hospital is selected to elaborate the process of the public-private project partnership. Considering the case study of the new Royal Adelaide Hospital the procurement context of the project has been defined. In this procurement context the project complexity, project environment and the governance of the project has been discussed. Following that risks related with the project has been identified and the mitigation strategies of those risks have been identified. Also, the project dependencies has been assessed. A brief summary has been given of the key findings from the project and the best practices for the contract and procure management has been identified. In the ending part of the document a reflection journal has been given summarising the key aspects of the project.
References:
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Harrison, F., & Lock, D. (2017). Advanced project management: a structured approach. Routledge.
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