What type of estimate is a conceptual estimate?

A conceptual estimate is often prepared using cost models derived from previous projects. This type of estimate serves as an initial approximation of construction costs before detailed designs are created. By referencing historical data and similar projects, estimators can quickly provide a ballpark figure to help stakeholders make preliminary decisions about project feasibility and budgeting.

The reliance on cost models allows for a more informed approximation instead of merely relying on vague averages or arbitrary figures. These models are typically adjusted for the scope and scale of the new project but fundamentally hinge on established data, making them more reliable than rough estimates.

In contrast, while the other options mention various estimation techniques, they do not accurately capture the essence of a conceptual estimate. The option involving last-minute cost adjustments pertains more to finalizing budgets close to project initiation, and the one regarding detailed project specifications pertains to more precise estimating methods. The notion of market averages also points towards less specificity compared to what a conceptual estimate represents through its foundation in prior project data.