Project budgeting and procurement Student name Institution affiliate Course code and name Professor Due date Project budgeting and procurement Cost Estimate Creation It is very complex and mul ...

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Project budgeting and procurement
Student name
Institution affiliate
Course code and name
Professor
Due date
Project budgeting and procurement
Cost Estimate Creation
It is very complex and multi-dimensional work to establish an advanced EHR system with all hospital facilities. This needs to be nicely planned, with precise cost estimation and a well-defined procurement approach. This milestone has identified critical components required for effective project delivery and cost-estimating methods, major procurement activities, and a procurement strategy that best enables cost control, flexibility, and accountability on the part of the vendors. This project will leverage the benefit of detailed bottom-up estimation and study a comprehensive make-or-buy analysis to ensure smooth hospital operations and improve patient care while addressing compliance with regulatory requirements. The following sections will outline details about the project's cost estimate, procurement plan, and strategy, including lessons learned during the overall planning process.
Estimation Technique Selection
The bottom-up estimation method will be applied to estimate hospital EHR project costs. It is a technique whereby the project needs to be broken down into more minor activities, which are easier to handle and control, and the cost estimate should be done separately for every activity (Nguyen, 2024). These costs will then be summed up to develop an overall estimate of the whole project. It has been selected for this purpose because implementing an EHR is a complex and precise procedure; hence, this approach is suitable for carrying out highly detailed cost analyses during the different phases of software acquisition, data migration, hardware procurement, and training services.
Assumptions and Justification
This cost estimate depends on some key assumptions: labor costs for IT specialists, project managers, and trainers remain constant throughout the project. The software licensing fees are estimated at current market rates, assuming no price spikes. The hardware costs are similarly estimated at current market rates, assuming no price spikes. The hospital also forecasts that the number of hours required to train most of the staff on EHR will be 20, with an estimated cost of $50 per hour.
Uncertainties and Highlighted Mitigation
Even with proper planning, there are still uncertainties about whether training delays occur because the new software features are more complicated than expected or compatibility problems with legacy systems, which then raise the cost of data migration. A 15% contingency reserve is anticipated in the budget to cushion against unexpected expenses. In addition, regular reviews can be carried out regarding progress made and risk implications to ensure early warning of emergent problems and quick deployment of corrective measures.
Procurement Document Development
The Key Procurement Activities
Therefore, procurement activities at the hospi