AACE Certified Cost Technician (CCT) 2026 – 400 Free Practice Questions to Pass the Exam

Pricing in estimating encompasses a comprehensive approach that includes both direct costs and indirect costs, alongside contingency. Direct costs refer to expenses that can be directly tied to the specific project activities, such as labor and materials. Indirect costs, on the other hand, are expenses that are not directly attributable to a single project but are necessary for the overall operation, such as administrative and overhead costs.

Including contingency in the pricing allows for the accommodation of unforeseen expenses that may arise throughout the project lifecycle. It helps ensure that the project stays within budget despite unexpected events or changes. Therefore, a complete pricing strategy that integrates direct costs, indirect costs, and contingency provides a more accurate and reliable estimate, preparing the project for potential financial fluctuations.

When considering the other options, focusing solely on direct costs or potential profit fails to account for the entirety of project expenses, risking budget shortfalls. Relying exclusively on market prices of similar services does not adequately reflect the unique circumstances of a specific project, as it may miss important factors unique to that project, such as location, scope, and resource availability. Thus, the choice that includes a well-rounded view of costs provides the most comprehensive and effective pricing strategy for successful project estimations.