As part of our introductory course for all of our new clients, we’ve created this small blog post that answers one of the most commonly asked questions we receive during a project: “What is an Opinion of Probable Cost?”
What is an Opinion of Probable Cost?
What Exactly is an Opinion of Probable Cost?
In remodeling, an opinion of probable cost is a professional estimate of the likely cost of a project provided during the project’s early stages. An opinion of probable cost, or OPC, or OPPC, is used to help clients understand the project’s cost implications and to make informed decisions thereafter.
The important details of an OPC is that it is a pre-construction document, it is freely viewable by all participants in the process, can have different levels of detail, and, most importantly, is not a set-in-stone warranty of the final cost of the project, only an estimate.
What does “probable cost” even mean?
As an estimate, an opinion of probable cost is not to be taken as the definite end-figure of a project’s cost. “Probable cost” means simply that: that this document contains a probable cost for the project in total. This is because of course any number of things can happen during a remodeling project that can either increase, or decrease, the budget. Examples include rising and lowering costs of materials, unforeseen repairs that have to be made, an expanded project scope, etc.
What makes Reliable’s OPC different?
Reliable’s Opinion of Probable Cost document is a very important part of our client intake process. Our OPC is our opinion of the value of investment for the type of project our clients are wanting built. When we get to the stage where we are sending you an OPC, we’ve already had conversations and talked about your project in-depth, and after providing preliminary bracket estimates, so the OPC is our best approximation of what the budget of your project should end up being. There are several caveats however, like the fact that the figures in an OPC should not be taken as gospel, much less contractual or enforceable.
The figures in an OPC are in a dollar value, but we ask our clients to be conscious of the facts that their personal preferences and selections will affect the final value, that additional information and/or visits to discover the full scope of the project will be required to further nail down the budget, and that our project descriptions are general in nature, again not to be taken as gospel.
An opinion of probable cost document is a massively important step in the remodeling journey for all of our clients, as the next step after an OPC is sent is for the client to decide whether to move forward with the project in total! We pride ourselves on our transparency, and we’ve spent countless man-hours trying to make our processes as transparent and non-confusing as possible!
Reliable Design-Build-Remodel is a full service general construction firm and remodeling contractor operating in the Birmingham metro and Jefferson and Shelby County areas and surrounding communities, including Birmingham, Helena, Chelsea, Mountain Brook, Hoover, Homewood, Montevallo, Alabaster, Vestavia Hills, and Pelham, with over 30 years of servicing our valued clients. Offering full service suite of general remodeling, design and build services. Our specialties include bathroom remodeling, kitchen remodeling, exterior renovations, interior renovations, painting, and more!
Visit us at reliablerem.com, and like and follow us on Facebook and Instagram!
