Parametric Range Estimating of Building Costs Using Regression Models and Bootstrap

Abstract

This paper presents a bootstrap approach for integration of parametric and probabilistic cost estimation techniques. In the proposed method, a combination of regression analysis and bootstrap resampling technique is used to develop range estimates for construction costs. The method is applied to parametric range estimation of building projects as an example. The bootstrap approach includes advantages of probabilistic and parametric estimation methods, at the same time it requires fewer assumptions compared to classical statistical techniques. This study is of relevance to practitioners and researchers, as it provides a robust method for conceptual estimation of construction costs.