Opinions of Probable Cost / Project Budgeting

An opinion of probable cost is an early budget that states its assumptions. PH&C prepares it during feasibility, when the drawings are a sketch or a program, so you can decide whether the next dollar should be spent.

What PH&C handles

• Separating hard costs (site work, building, tenant work) from soft costs (design, permits, legal, insurance, financing, commissions).
• Pricing the drivers visible at this stage: earthwork, retaining walls, utilities, off-site road work, and remediation.
• Using current regional unit prices and noting where a price is a placeholder.
• Sizing contingency to the level of information available.
• Comparing the total against your pro forma and financing assumptions.
• Showing which line items would have to change for the deal to work.
• Updating the opinion as studies and drawings come in.

What you get

• A budget you can take to a lender or an investor.
• Visibility into the items that drive cost, rather than a single total.
• Alternatives when the numbers do not work, such as a smaller building, a different site, or a phased scope.
• A foundation for the detailed estimate that follows.

How it connects

As drawings advance, the opinion becomes a detailed estimate under estimating and value engineering and is tested in the pro forma and budget. It is part of site analysis and feasibility. If you have a sketch and a target return, contact PH&C.