What is the range of accuracy expected from Budget Estimates?

The range of accuracy expected from Budget Estimates in project management typically falls within a range of +30 percent or -15 percent. This range reflects a level of uncertainty that is realistic given the preliminary nature of budget estimates. At the budgeting stage of a project, a significant degree of estimation and assumption is often involved, which naturally leads to a broader range of potential accuracy.

This range indicates that the estimates can be expected to be higher than the actual costs by as much as 30 percent and lower by as much as 15 percent, accounting for the risks and uncertainties in project planning. Understanding this range is critical for project managers as it helps them prepare for potential financial variances and plan contingencies accordingly. Thus, it establishes a framework within which budget estimates are viewed as a guide rather than a precise figure.

In contrast, other ranges provided in the options either suggest an unrealistically tight estimate for early project phases or fall outside the conventional accuracy standards accepted in the industry.