Question

Consider the statements P and P: Client’s Preliminary Estimate is used for budgeting costs toward the end of planning and design phase. Q: Client’s Detailed Estimate is used for controlling costs during the execution of the project. Which one of the following options is CORRECT?

• A. Both P and Q are TRUE
• B. P is TRUE and Q is FALSE
• C. Both P and Q are FALSE
• D. P is FALSE and Q is TRUE

Hint:

Preliminary estimates help in early-stage budgeting and feasibility analysis, while detailed estimates are crucial for monitoring and controlling costs during project execution.

Answer 1

The Correct Option is A

Step 1: Statement P states that the preliminary estimate is used for budgeting costs towards the end of the planning and design phase. This statement is correct as preliminary estimates provide an approximate cost to help in decision-making before detailed designs are completed. Step 2: Statement Q mentions that the detailed estimate is used for controlling costs during the execution phase. This statement is also correct, as a detailed estimate provides an accurate cost assessment based on finalized project plans and specifications, helping in cost control during execution. Conclusion: Since both statements P and Q are correct, the correct answer is option (A), which states that both P and Q are TRUE.