Certified Facility Manager (CFM) Practice Exam

Which estimating method is considered the most accurate in construction projects?

1. Cost-plus estimate

2. Unit-price estimate

3. Agency estimate

4. Fixed-price estimate

The correct answer is: Unit-price estimate

The unit-price estimate method is often regarded as the most accurate in construction projects because it breaks down the project into individual components or work units. Each unit's cost is determined based on historical data or previous similar project costs, allowing for a detailed and precise estimation of the overall project budget. This method accounts for variations in the quantity of work needed, making it adaptable to changes and thereby reducing the likelihood of unforeseen expenses during the course of the project. By pricing out specific units of work (such as square footage for flooring or linear feet for piping), project managers can accurately calculate costs according to real requirements on-site, enhancing budget reliability. Additionally, unit pricing facilitates straightforward adjustments if project specifications change, which further contributes to its accuracy compared to other estimating methods that may rely on broader or less detailed assumptions.