Estimating Practice Exam

Which type of estimate requires minimal information and is used for preliminary project ideas?

1. Detail estimate

2. Preliminary estimate

3. Conceptual estimate

4. Cost estimate

The correct answer is: Conceptual estimate

The type of estimate that requires minimal information and is used for preliminary project ideas is a conceptual estimate. This form of estimating is often employed in the early stages of project development when little detailed information is available. It relies on general parameters, assumptions, and historical data related to similar projects to provide a rough cost approximation. Conceptual estimates help stakeholders evaluate the feasibility of a project before moving forward into more detailed planning and analysis. They are valuable for making initial budgetary decisions and guiding expectations regarding the potential costs involved. The focus is broad, allowing for flexibility as more detailed information becomes available during the project's progression. In contrast, detail estimates involve comprehensive breakdowns of costs and require much more specific information about the project. Preliminary estimates, while also being early estimates, typically contain more information than conceptual estimates. Cost estimates can refer to various types of estimates but do not specifically indicate the minimal information required that is characteristic of conceptual estimating.