Estimating Practice Exam

Do different project delivery systems use conceptual, preliminary, and detailed estimates at various stages of project development?

1. True

2. False

The correct answer is: False

The statement that different project delivery systems utilize conceptual, preliminary, and detailed estimates at various stages of project development is true. Each type of estimate serves a distinct purpose and is used at different points in the project lifecycle. Conceptual estimates are typically employed in the early phases of a project, serving as a rough approximation of costs based on limited information. These estimates help in establishing a budget and determining project feasibility. As the project progresses, more detailed information becomes available, necessitating the creation of preliminary estimates. These provide a more refined understanding of costs and are often used to guide early decision-making and planning. Finally, detailed estimates come into play when the project is near the execution stage, where comprehensive information regarding materials, labor, and other resources is available. This level of estimation ensures budgets are precise and aids in managing project costs effectively throughout its execution. Understanding that different project delivery systems may require varying levels of estimates highlights the importance of adapting estimation techniques to the project's development stage. Hence, the answer aligns with the general principles of project management and estimating practice, confirming the initial statement as true.