Regression Model of Shop-house Construction Costs and Percentage of Building Component Costs

The building of shop-house in Indonesia is used for various functions. Consequently, people who have land on the roadside tend to construct it as a shop-house building. Before deciding that the land they have built houses, landowners need to know how much budget is needed. However, at this stage there is not enough data to find out the total costs needed for the construction of shop-house, because the cost of constructing a shop-house can only known if a plan drawing has been designed. Though when deciding to invest, it needs to be taken into account the profit and loss of the investment, as well as the ability of the costs that are owned. To answer this problem the authors propose a model as a solution to predict the cost of building a shop-house when data is not available any more. In addition, to propose a model also provides information on the percentage of the cost of the components of the shop-house building, as a solution to predict the cost of reduction or addition due to design changes. The model and the percentage of the cost of the components of the shop-house building are generated by the process of combining the Burgeslijke Openbare Werken (BOW) method, regression analysis and human experience as an estimator. Using this model simply enter the planned information on the area of the storehouse. The suggested model has been tested for validity, and the results are quite accurate, because they only have an average difference of one percent. Estimating the cost of a shop-house building where there is no data from now on can be predicted quickly using the model. As a result, this model can be used as a formula to decide on the feasibility of investing in shop-house construction at this time and in the future.