Which factor can lead to discrepancies in cost estimation?

Which factor can lead to discrepancies in cost estimation?

• A. Consistent project timelines
• B. Clarity in stakeholder expectations
• C. Unexpected design changes during the project
• D. Established labor contracts

Answer: (C)

Unexpected design changes during the project can significantly lead to discrepancies in cost estimation. When a project undergoes design modifications after the estimation phase, it often requires alterations in materials, labor, and equipment, all of which can escalate costs beyond what was initially planned. These changes may arise from various sources, including evolving client needs, regulatory updates, or unforeseen site conditions. In contrast, consistent project timelines, clarity in stakeholder expectations, and established labor contracts typically contribute positively to the accuracy of cost estimates. Consistent timelines allow for better planning and resource allocation, clarity in stakeholder expectations ensures that everyone is aligned on project goals and requirements, and established labor contracts can provide predictable labor costs. These factors help stabilize the project scope and financial forecasts, reducing the likelihood of unexpected costs.

Unexpected design changes during the project can significantly lead to discrepancies in cost estimation. When a project undergoes design modifications after the estimation phase, it often requires alterations in materials, labor, and equipment, all of which can escalate costs beyond what was initially planned. These changes may arise from various sources, including evolving client needs, regulatory updates, or unforeseen site conditions.

In contrast, consistent project timelines, clarity in stakeholder expectations, and established labor contracts typically contribute positively to the accuracy of cost estimates. Consistent timelines allow for better planning and resource allocation, clarity in stakeholder expectations ensures that everyone is aligned on project goals and requirements, and established labor contracts can provide predictable labor costs. These factors help stabilize the project scope and financial forecasts, reducing the likelihood of unexpected costs.