ABSTRACT
Estimating based on statistical methods has the appeal of condensing historical records into a useable form. One of these statistical methods is multiple Linear Regression Analysis and an example of its use was described in the January/February 1974 edition of The Quantity Surveyor by G.A. Hughes. Regression Analysis as a cost modelling tool is a technique which enables the cost of project to be expressed in very few items. For example the cost model say residential apartment blocks may be Cost (at model’s base date)
and if the model variables had the following values in one particular case Area of single units = 1044
the estimator could quickly show that cost (at models base date)
(Note the above formula is only applicable for the same type of buildings used in the analysis and should not be applied to other types of buildings. For further information contact the author.)
The technique also enables the estimator to say how accurate the estimate is, in numerical rather than subjective terms. If his assessed accuracy was ±9% this would imply that for most cases the cost is expected to be within £358,014 to £428,831.
