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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.

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