THE STUDY ON CONSTRUCTION PROJECTS INDIRECT COST COMPONENT COST ESTIMATING PRACTICES IN BY MEDIUM-SIZE CONTRACTORS IN BANDUNG AND JAKARTA

• Main Author: RAHADIAN (NIM : 25008011); Pembimbing ; Ir. Biemo W. Soemardi, MSE., Ph. D, DONY
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/15436
• Institution: Institut Teknologi Bandung

Indirect cost is the most difficult cost components to estimate. While the direct cost can be estimated quite accurately by referring to the drawings and technical specifications, the determination of indirect costs is often carried out without clear reference. This study aims to obtain a picture of the pattern characteristics of indirect cost estimates performed by the medium contractors in Bandung and Jakarta. <br /> <br /> <br /> Data in this study is collected by means of survey, interviews and costs data collection to twenty medium contractors in the area of Bandung and Jakarta. The respondents are staffs and directors of contractor companies. Results of analysis showed that in practice contractors assigned indirect costs as a percentage of direct costs. In determining the amount of percentage, the contractor used record of the previous project cost data and estimates of the level of risk that the project will be done based on experience. This study also formulated a model to estimate indirect cost component of construction projects by means of regression of the construction budget data submitted by contractors during the bidding process. The model showed that the ratio between indirect cost to total cost tends to decrease with the increment of total project value.