How does involvement of stakeholders during cost estimation benefit a project?

The involvement of stakeholders during cost estimation significantly benefits a project primarily by aligning goals and expectations, which leads to improved cost accuracy. Stakeholders may include project owners, contractors, consultants, and end-users, each with unique insights and requirements. By engaging these parties early in the estimation process, potential issues can be identified and addressed collaboratively. This participation ensures that all perspectives and needs are considered, allowing for a more comprehensive understanding of the project's scope and the associated costs.

Effective communication and collaboration among stakeholders can reveal underlying assumptions, clarify project objectives, and bring to light any changes that may impact costs. This alignment helps prevent miscommunication and ensures that everyone is on the same page, ultimately resulting in a more accurate and reliable estimate. When stakeholders actively participate, they contribute their expertise and insights, leading to more informed decision-making and a greater likelihood of project success.

The other options highlight misunderstandings about stakeholder involvement. Creating conflicts among team members is generally a result of poor communication or misalignment, rather than stakeholder engagement itself. Focusing solely on financial contributors ignores the contributions and needs of other crucial stakeholders, which can lead to gaps in the estimation process. Lastly, while having multiple stakeholders can add complexity to the process, this complexity can be managed effectively. The benefits