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AACE International Certified Cost Professional (CCP) Exam CCP Question # 14 Topic 2 Discussion

CCP Exam Topic 2 Question 14 Discussion:
Question #: 14
Topic #: 2

A major theme park is expanding the existing facility over a five-year period. The design phase will be completed one year after the contract is awarded. Major engineering drawings will be finalized two years after the design contract is awarded and construction will begin three years after the award of the design contract. New, unique ride technology will be used and an estimate will need to be developed to identify these costs that have no historical data.

The following question requires your selection of CCC/CCE Scenario 26 (2.5.50.1.2) from the right side of your split screen, using the drop down menu, to reference during your response/choice of responses.

Why is a +/- notation necessary when developing an estimate?


A.

Contingency cushion


B.

It makes up for the lack of time to develop a real estimate


C.

It is a government requirement


D.

There are unknowns that affect the final cost of a project


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