Why is determining the project's scope significant in cost estimation?

Determining the project's scope is significant in cost estimation because it precisely defines the boundaries of work and the resources that will be required. By outlining what is included in the project and what is outside its limits, stakeholders can identify all necessary materials, labor, and time commitments needed to complete the project. This clarity is crucial for creating accurate cost estimates, as it helps ensure that all potential expenses are accounted for, reducing the likelihood of cost overruns or unexpected expenses during construction. Furthermore, a well-defined scope allows for better planning and resource allocation, aiding in the overall efficiency of the project execution.