Pre-bid building price forecasting accuracy: Price intensity theory

A theory of pre-bid building price forecasting accuracy is proposed, based on the heuristic bias framework and with reference to the common practice of basing building price forecasts on the price per square metre of floor area, termed here as Price Intensity (PI). The main prediction of the theory, that high PI contracts will be underestimated and low PI contracts will be overestimated, is tested by a re-analysis of a set of Singapore data and in comparison with previous work.