The RAB is the price you tendered and agreed with the client. The RAP (Rencana Anggaran Pelaksanaan, the execution cost plan) is the cost you expect to actually spend to deliver that RAB. The difference is the planned profit. The RAB answers "how much we are paid", the RAP answers "how much we will spend".
RAB and RAP compared
| RAB | RAP | |
|---|---|---|
| For whom | The client | The contractor, internal |
| Prices from | Tender unit prices or AHSP | Supplier quotes, labour-contract rates and your own crew productivity |
| Contents | Work items as in the contract | The same items, plus site costs not listed in the RAB |
| Used for | Contract and billing | Spending limits and cost control |
| Shown to the client | Yes | No |
Example: a Rp1 billion contract
| Section | RAB (contract) | RAP (execution) | Difference |
|---|---|---|---|
| Preliminaries | Rp20 m | Rp18 m | Rp2 m |
| Foundations | Rp120 m | Rp100 m | Rp20 m |
| Concrete structure | Rp250 m | Rp205 m | Rp45 m |
| Walls | Rp150 m | Rp125 m | Rp25 m |
| Roof | Rp130 m | Rp105 m | Rp25 m |
| Floors and finishing | Rp230 m | Rp180 m | Rp50 m |
| Electrical and plumbing | Rp100 m | Rp77 m | Rp23 m |
| Site overhead (not in the RAB) | Rp40 m | minus Rp40 m | |
| Total | Rp1,000 m | Rp850 m | Rp150 m (15%) |
Site overhead is the site cost that does not appear as an item in the RAB: site manager and supervisor wages, equipment hire, site office, site water and power, transport, security. In the RAB it is spread inside the unit prices; in the RAP it gets its own line so it can be controlled.
How to build the RAP
- Start from the agreed RAB, with the same work item codes and quantities.
- Re-price each item with real prices: current supplier quotes, labour-contract or subcontract rates, and your own crew’s productivity.
- Add a site overhead line: monthly cost times the project duration.
- Add a small risk allowance for items whose price is not yet certain.
- Work out the RAB minus RAP difference per item and in total. If the margin is too thin, or an item’s RAP is above its RAB, look for savings before work starts.
- Once management approves it, lock the RAP as the execution budget.
Using the RAP to control cost
- Every PO and labour contract is checked against its item’s RAP before approval.
- The weekly cost report compares actual cost with the RAP, not the RAB. The RAB is only used for billing.
- An item whose actual cost is close to its RAP while the work is not finished is the first warning sign.
- Variations change the RAB and the RAP together.
Common mistakes
- Comparing actual cost with the RAB, so the project looks profitable after the margin is gone.
- Leaving site overhead out of the RAP, so it turns up as a surprise at the end.
- Making the RAP once and never updating it when material prices rise.
- Using different work item codes in the RAP and the RAB, so items cannot be compared.
The full guide is in How to build a construction cost report that catches overruns early. It has a free template (Excel or Google Sheets) and a checker that reads your own workbook.
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When your workbook is complete, apply for a pilot: we help connect your project data to the Finance, Cost and Scheduler agents and review the first reports with you.
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Common questions
What is a RAP?
Rencana Anggaran Pelaksanaan: the contractor’s planned real cost of doing the project, used as the internal spending limit.
How does the RAP differ from the RAB?
The RAB is the price agreed with the client. The RAP is the cost planned to deliver it. The difference is the planned profit.
What margin between RAB and RAP is normal?
It depends on the kind of project and its risk. What matters is working the margin out per item, so thin or losing items are visible.
Is the RAP given to the client?
No. It is an internal contractor document.