In which costing method is prevailing market rate for construction used as a parameter?

The correct answer centers around the method that specifically utilizes the prevailing market rate for construction as a defining factor in determining costs. This method is designed to calculate costs based on a percentage of the overall project cost. By using a percentage of the project construction cost, the method aligns expenditures with the current rates available in the market, making it a dynamic and responsive approach to cost calculation.

This is notably useful because it considers real-time economic conditions and market fluctuations, allowing for a more accurate representation of actual costs incurred during construction. This approach provides a clear structure for estimating costs while reflecting the realities of current market conditions.

In contrast, other methods mentioned might not directly tie calculations to current market rates. For instance, the standard pricing method may set predetermined costs that do not adjust based on market fluctuations, while methods like PPCC (Prescriptive Price Construction Calculation) and market rate calculations may have more specific applications or contexts that do not inherently rely on prevailing market rates as a parameter for calculating costs in a percentage format.