How does the owner use the estimate? Identify the set of owner-level decisions and obligations supported by the project estimate.

Introduction / Context:
The project owner relies on cost estimates to make go/no-go decisions, raise finance, and comply with statutory and insurance requirements. Without a credible estimate, neither lenders nor boards can authorize funds, and feasibility studies lack an economic anchor.

Given Data / Assumptions:

• The owner needs a single version of expected project cost for planning.
• External stakeholders (banks, insurers, tax authorities) require defensible figures.
• Economic feasibility requires comparing benefits with total life-cycle costs.

Concept / Approach:
An estimate informs the capital budget (CapEx), supports loan syndication and term sheets, sets insurable values, and underpins valuation and depreciation schedules. It also frames the benefit–cost or NPV analysis used in feasibility reports.

Step-by-Step Solution:
Use the estimate to size the capital budget and contingency.Present it to lenders and investors to anchor financing structure and milestones.Feed it into economic models (NPV/IRR/PI) to assess feasibility.Adopt it for tax, insurance, and valuation baselines subject to later true-up.

Verification / Alternative check:
Owners' project development manuals list these uses explicitly: budget approval, financing, insurable value, and economic justification.

Why Other Options Are Wrong:
Any single choice omits other essential applications; comprehensive use is standard practice.

Common Pitfalls:

• Confusing construction estimate with total project cost (which also includes land, design fees, permits, and owner's costs).
• Underestimating contingency and escalation, leading to budget overruns.

Final Answer:
All of these