Oregon Construction Contractors (CCB) Practice Test

A good estimate will fall within what percent range of actual construction costs?

1. 1 to 2

2. 5 to 10

3. 3 to 5

4. 10 to 15

The correct answer is: 1 to 2

A good estimate typically aligns more closely with a range of 5 to 10 percent of actual construction costs. This range reflects the standard accuracy for construction project estimates, allowing for variabilities in factors such as material costs, labor rates, and unforeseen issues that may arise during the construction process. Estimates falling within 1 to 2 percent of actual costs are extremely precise and can be very challenging to achieve in practice due to the many unpredictable elements in construction projects. The nature of construction means that there will always be some level of fluctuation in costs based on supply chain issues, changes in project scope, and labor dynamics. Therefore, while the precision of 1 to 2 percent sounds ideal, it is not realistically attainable for most projects. Estimates within the 5 to 10 percent range are generally accepted in the industry as both reasonable and achievable, allowing for some cushion for variances while still being aligned closely enough to guide budgeting and funding needs effectively.