A major theme park is expanding the existing facility over a five-year period. The design phase will be completed one year after the contract is awarded. Major engineering drawings will be finalized two years after the design contract is awarded and construction will begin three years after the award of the design contract. New, unique ride technology will be used and an estimate will need to be developed to identify these costs that have no historical data.

A major theme park is expanding the existing facility over a five-year period. The design phase will be completed one year after the contract is awarded. Major engineering drawings will be finalized two years after the design contract is awarded and construction will begin three years after the award of the design contract. New, unique ride technology will be used and an estimate will need to be developed to identify these costs that have no historical data.

The following question requires your selection of CCC/CCE Scenario 26(2.5.50.1.2) from the right side of your split screen, using the drop down menu, to reference during your response/choice of responses.

Select the statement that best describes the meaning of the +/-notations associated with an estimate. The actual cost is expected:
A . To be exactly the percentages stated
B . To fall within the percentage range stated
C . To be higher or lower that the percentages stated
D . To be outside the percentages stated

View Answer

Answer: B

Explanation:

The +/- notations associated with an estimate indicate that the actual cost is expected to fall within the percentage range stated. This means that the final cost of the project is likely to be within a certain range above or below the estimated value, accounting for uncertainties and potential variations in the project’s execution. This range gives a more accurate picture of the potential cost outcome, rather than assuming a fixed amount.