Which type of estimation technique uses past project performance to inform future project costs?

The correct choice is based on the understanding that historical estimates leverage data from past projects to help predict future costs for similar projects. This technique involves analyzing previous project performance, including cost data, duration, and resource utilization, and applying that knowledge to create more accurate estimates for upcoming projects.

Using historical data allows construction professionals to identify trends, make informed decisions, and adjust for any variations that may affect costs in the new project. This method benefits from real data, reducing uncertainty in the estimation process by grounding projections in previously experienced outcomes.

In contrast, detailed estimates involve breaking down all components of a project for thorough assessment; parametric estimates use statistical relationships between variables to estimate costs, while conceptual estimates focus on broad analyses early in project development and rely on expert judgment rather than historical data.