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Consider the statements with respect to the degree of accuracy in estimating.

Assertion (A): The accuracy to be observed in preparing an estimate depends on the rate of the item and unit of payment.

Reason (R): The higher the rates the greater should be the accuracy with which the quantities are calculated.


1. Both A and R are true and R is the correct explanation of A.
2. Both A and R are true and R is not the correct explanation of A.
3. A is true but R is false.
4. A is false but R is true.

1 Answer

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Correct Answer - Option 1 : Both A and R are true and R is the correct explanation of A.

Explanation:

In the estimation of cost, The accuracy to be observed in preparing an estimate depends on the rate of the item and unit of payment. When the rates are higher than the accuracy should be greater and also depend on the unit of the payment. 

Some other factor influencing the degree of accuracy in estimating:

  • Clear and detailed drawings and specification
  • Experience in pricing construction projects 
  • Perception of estimation importance
  • Equipment (cost/availability/performance)
  • Project complexity 
  • Clear scope definition
  • Site constraints (access, storage, services)

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