Analysis of Contract Price Fairness Based on Unit Prices Using the Cost-Plus Pricing Approach: A Case Study of the IAIN Fattahul Muluk Library Building in Jayapura

Abstract

Construction projects in remote areas with significant logistical challenges, such as Papua, are prone to discrepancies between contract prices and local base prices, undermining the accuracy of cost planning. This study aims to evaluate the differences between contract-based Cost Estimates (RAB) and base-price-based Cost Estimates using Unit Price Analysis (AHSP) for the construction project of the IAIN Fattahul Muluk Jayapura Library Building. The method used is a descriptive-quantitative case study combining data from local material price surveys and project contract documents. The analysis results indicate that the contract price for structural works, amounting to Rp 19.83 billion, was only 2.4% higher than the base price of Rp 19.35 billion, with a difference of approximately Rp 479.3 million, suggesting that the contract price is relatively close to the fair value based on local costs. Conversely, for architectural works, the contract price of Rp 11.53 billion was 10.4% higher than the base price of Rp 10.33 billion, resulting in a difference of Rp 1.19 billion, indicating that the contract price tended to exceed the estimated fair cost. The largest deviation was observed in floor and wall works, reaching 23%. These findings suggest that price deviations are not evenly distributed across work categories, with architectural works being more sensitive to variations in finishing material prices, specifications, and supply constraints. Therefore, the application of cost estimates (RAB/HPS) based on local prices is crucial, particularly for architectural work packages, to enhance the accuracy of cost estimates and the reasonableness of prices in construction projects in remote areas.

Keywords: Contract Price; Base Price; Cost-Plus Pricing; AHSP, Structural Works; Architectural Works; Construction Projects.