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Source : Unsplash, Kelly Sikkema
June 21, 2022
Author : Patty Allen
Construction codes are an absolute necessity when creating a budget and sticking to it for specific construction projects. It would be difficult to track the various expenses if not for this. To be profitable, contractors more and more rely on cost code data.
Cost code information is used by project managers, accountants, and estimators to precisely analyze job progress and create future budgets. To receive high-quality data and acquire improved insights that aid contractors in staying on schedule and within budget, a standardized system for cost code tracking is vital.
Not only used internally to understand project finances, the data can be shared with stakeholders to gauge a project’s success or enhance procedures. The data furthermore is useful for construction estimators to show federal and local agencies a precise breakdown of time and expenditures.
The main benefits of the cost code are:
“Providing accurate and detailed construction cost estimates early in the planning and design process allows you to create a roadmap for a successful project,” explains Marcene Taylor, President of construction estimating firm Marcene Taylor Inc. and former President of the American Society of Professional Estimators, an organization that represents construction estimators.
The construction industry and individual contractors can benefit greatly from having standardized cost code documentation.
Companies must gather just the right amount of data without becoming overly complex or granular. The difficulty can sometimes be to stay focused, and avoid employees going down rabbit holes of digital detritus.
Furthermore, inconsistent, less accurate data can be the product of too complex of a cost code system which is also often challenging for field personnel to use. I could piece of advice: obtain suggestions from veteran estimators who use cost code data, then develop a system that satisfies the requirements for your firm and all parties involved in the project.
Advantages of using digital reporting are enhanced accuracy and ease of use, real-time insights, detailed reporting, and faster payroll processing.
Traditional reporting is time-consuming and can often lead to unfortunate errors. Using apps and software to collect data allows for real-time interaction by various stakeholders, whether in the field or in the corporate office. Digital reporting helps streamline the process and can increase efficiency and productivity manifold.
For contractors to maintain their profit margin in these times of inflation, it is important to keep track of every detailed expense, and the cost code helps do that.
Want to read more? In a previous Contractor News report we looked at five popular long-term tech trends in constructor estimating: electronic take-off, electronic bidding tools, making outreach efficient, electronic job costing, and computer-aided scheduling.
Keep your eye on Contractor News for the latest on construction estimating and public works.