Why is it important to analyze historical performance in estimating?

Analyzing historical performance in estimating is crucial because it provides valuable insights into past projects that can inform future estimates. By reviewing historical data, estimators can identify patterns, trends, and potential risks associated with cost and scheduling that have been experienced in previous projects.

Understanding historical performance helps in recognizing which project aspects were successful and which ones encountered challenges, thus allowing estimators to make more informed and accurate predictions about potential obstacles and uncertainties in upcoming projects. This analysis leads to better risk management and enhances the accuracy of estimates, ultimately contributing to the project's success.

In contrast, the other choices do not capture the comprehensive benefits of analyzing historical data. For instance, skipping this analysis could lead to uninformed decision-making, which would undermine the estimation process. While involving a broader range of contractors may be beneficial, it is unrelated to historical performance analysis. Moreover, focusing solely on future speculation disregards the lessons learned from past experiences that are vital for making sound estimates.