What is the expected accuracy range for Definitive Estimates?

Definitive Estimates are typically characterized by their high level of accuracy because they are based on detailed project specifications and include all known project costs at a certain point in time. The expected accuracy range for Definitive Estimates is often recognized as somewhere around +15 percent or -5 percent. This means that the actual costs incurred are highly likely to fall within this range, providing a reliable basis for budgeting and financial planning for a project.

This level of precision stems from the thorough analyses and comprehensiveness of the information used in developing these estimates. Since Definitive Estimates are generated after a significant amount of project design and planning, they incorporate detailed labor and material quotes, known risks, and project scope, which contribute to their narrower accuracy margins compared to other estimates, like preliminary or conceptual estimates.

Other options suggest much broader ranges of accuracy. For instance, the broader estimates can accommodate the various uncertainties at earlier stages of the project, but these are not applicable to Definitive Estimates, which should reflect a more mature understanding of project costs.