Estimating Practice Exam

Where are the unit prices used in estimates generally obtained from?

1. Directly from sellers

2. Online databases

3. Independent price analysts

4. Directly from the suppliers

The correct answer is: Directly from the suppliers

Unit prices used in estimates are generally obtained directly from the suppliers. This is primarily because suppliers have the most accurate and up-to-date information regarding their products, including pricing. Suppliers typically provide pricing based on various factors such as material costs, labor, and market demand, which ensures that estimators receive reliable data that reflects the current market conditions. Utilizing information directly from suppliers helps in obtaining specific pricing for the quantities and types of materials needed for a project. This can lead to more precise estimates and better budgeting practices. Another important aspect is that engaging directly with suppliers often allows estimators to account for any discounts, competitive pricing strategies, or special promotions that may not be available through other sources. In contrast, while data can also be gathered from options such as online databases or independent price analysts, these sources may not always offer the same level of specificity and relevancy to current supplier pricing, which is crucial for creating accurate estimates.