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Consider the statements P and Q. P: Client’s preliminary estimate is used for budgeting costs toward the end of the planning and design phase. Q: Client’s detailed estimate is used for controlling costs during the execution of the project. Which one of the following options is correct?

1. Both P and Q are TRUE
2. P is TRUE and Q is FALSE
3. Both P and Q are FALSE
4. P is FALSE and Q is TRUE

Correct answer: P is TRUE and Q is FALSE

Solution

A preliminary estimate is indeed used for budgeting near the end of planning and design, so P is true. A detailed estimate is mainly prepared for technical sanction and accurate cost calculation, not directly for controlling costs during execution, so Q is false.

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