Project Cost Estimation Based on Standard Price of Goods and Services (SHBJ)

Abstract

Cost estimation is determining the probable cost of a project, which is critical in project development. For government projects in Indonesian construction industry, it is common to use a standard price of goods and services (called SHBJ) publised by the government as a cost reference. This research examines whether the SHBJ provide sufficient and reliable data. A case study from a contractor's bidding document (RAB) and the SHBJ from the city of Yogyakarta are employed. The result shows that cost estimation based on the SHBJ and the contractor's RAB gives 12% difference. Using SHBJ data from years 2010-2016 a regression equation is obtained as Yi = 62,156 X + 2,003,962 which can be used to estimate project cost in the future. This research also suggests some improvments for the SHBJ.