Glossary · Job costing
Cost codes
Cost codes are short codes a contractor attaches to hours and expenses to show what kind of work they belong to, such as rough-in, trim or demolition. Each job gets its own list of codes so the actual cost of each part of the work can be compared with its estimate.
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How are cost codes built?
Cost codes are usually built as a job number plus a phase or scope code, and sometimes a cost type. Many contractors base the scope part on the MasterFormat division numbers used in specifications, then trim or extend the list to fit how they estimate.
| Part | Example | Meaning |
|---|---|---|
| Job | 2417 | The project, such as a school renovation |
| Scope code | 26 05 00 | Electrical, common work results |
| Cost type | L | Labor (other letters can mean material, equipment or subcontractor) |
What does a cost code do for a crew on a jobsite?
A cost code tells the office where a crew's hours went. A foreman who splits a day between pulling wire and setting boxes can have those hours land on two scope lines instead of one lump.
One day, three codes
- 6:30 AM to 10:00 AMRough-in, third floor: 3.5 hours coded to rough-in.
- 10:00 AM to 12:00 PMTemporary power: 2.0 hours coded to temp power.
- 12:30 PM to 2:30 PMRough-in, third floor: 2.0 hours coded to rough-in.
Frequently asked questions
How many cost codes should a job have?
Are cost codes the same as MasterFormat?
Can a badge assign cost codes automatically?
Sources
- 1.MasterFormat, standards overview · Construction Specifications Institute
