Which statement best describes the phrase 'Estimate is not a price'?

Which statement best describes the phrase 'Estimate is not a price'?

• A. It is an exact price for construction.
• B. It is an opinion of probable cost.
• C. It is the final contract sum.
• D. It includes a guaranteed maximum price.

Answer: (B)

An estimate is an informed forecast of what a project will likely cost, based on current design details, quantities, unit costs, and known risks. It carries uncertainty and is used for budgeting and comparing options, not for binding price guarantees. Because it reflects probable costs and can change with design refinements, scope adjustments, or market shifts, it shouldn’t be treated as a fixed number. A precise price would only exist once the design is fully defined and a contract is established. The final contract sum is the negotiated total under the agreement, and a guaranteed maximum price sets a ceiling under GMP contracts. So, describing an estimate as an opinion of probable cost appropriately captures its purpose and limitations.

An estimate is an informed forecast of what a project will likely cost, based on current design details, quantities, unit costs, and known risks. It carries uncertainty and is used for budgeting and comparing options, not for binding price guarantees. Because it reflects probable costs and can change with design refinements, scope adjustments, or market shifts, it shouldn’t be treated as a fixed number. A precise price would only exist once the design is fully defined and a contract is established. The final contract sum is the negotiated total under the agreement, and a guaranteed maximum price sets a ceiling under GMP contracts. So, describing an estimate as an opinion of probable cost appropriately captures its purpose and limitations.