The term "Cost Code" in the construction industry generally refers to numeric or alphanumeric codes that represent the costs associated with different aspects of a construction project. They are typically assigned across different aspects of a construction project (i.e. within estimates, change orders, punch lists, etc.) as a way to uniformly identify, categorize, and track project labor, material, equipment, subcontractor, and administrative costs.

Because each construction business is unique, most companies choose to structure their Cost Codes based on the specific needs of their business or projects. However, there are a few coding systems that have been adopted industry-wide such as the Construction Specifications Institute's (CSI) MasterFormat and Uniformat coding systems and the National Association of Home Builders coding system. A few Cost Codes that come from the CSI MasterFormat include:

1-10 - Project Manager
2-220 - Site Demolition
3-50 - Concrete Subcontractor
6-200 - Finish Carpentry

Cost Codes are typically organized within lists that have been traditionally kept in spreadsheets or other documents. However, construction management software platforms like ConstructionOnline have revolutionized the way Cost Codes can be stored and implemented across the different aspects of project management.

Each construction management platform utilizes Cost Codes differently. ConstructionOnline's Company Cost Codes were designed to help organize construction data across all facets of your construction project management for visibility and reporting purposes. ConstructionOnline's Cost Code system—consisting of Lists, Divisions, and the Codes themselves—ties numerous features together based on the type of work being completed, boosting visibility for each division cost and allowing you to stay organized and informed throughout the construction process. To learn more about ConstructionOnline Cost Codes, visit this overview article.

🚧 For accounting integrations with QuickBooks, please keep in mind Cost Codes are not part of the data that transfers over. These integrations key off the "Name" column of your Estimate, not the assigned Cost Code. For more information on ConstructionOnline's accounting integration with QuickBooks Desktop, visit this FAQ article. For more information on ConstructionOnline's accounting integration with QuickBooks Online, visit this FAQ article.

Why should I use Cost Codes in ConstructionOnline?

With ConstructionOnline's Cost Code System, construction companies can build customized Cost Code Lists to categorize construction costs into specific divisions—improving visibility for division costs and simplifying project data across all features in ConstructionOnline. By assigning cost codes system-wide, companies can tie the different ConstructionOnline features they use together based on the type of work being completed, resulting in more organized construction cost data across all facets of project management and better reporting capabilities.

So, for example, let's say during your initial project setup you choose to use the Construction Specifications Institute's (CSI) Cost Code list and select Division 3 - Concrete for your concrete work. During the estimating phase of your project, you assign the 3-50 - Concrete Subcontractor Code to the labor costs related to concrete-related item such as the project's foundation, slabs, and wall. Then, when creating your project schedule, you assign the 3-50 - Concrete Subcontractor Code to any tasks or milestones tied to your concrete subcontractor's labor. Any additional change orders, to dos, daily logs, punch list items, etc. related to your concrete sub's labor are also assigned the 3-50 - Concrete Subcontractor Code.

By consistently implementing these Cost Codes across your ConstructionOnline Project, you and your team members ensure that every project expense related to your concrete work is meticulously identified, recorded, and monitored in real time. In addition to this, the use of Cost Codes establishes an organized foundation for company reporting and opens up multiple unique reporting options in ConstructionOnline that promote transparency, accuracy, and efficiency in your financial management, enable better control over your project costs, support better decision-making, and enhance the overall success of your projects.

Can ConstructionOnline Cost Codes be sent to QuickBooks?

No, ConstructionOnline Cost Codes cannot be sent to QuickBooks. ConstructionOnline's Cost Codes were designed as an internal "white label" allowing you to organize, track, and report on your costs system-wide. For more information on Cost Codes, visit this FAQ.

What ConstructionOnline features can I use Cost Codes in?

The following ConstructionOnline features are tied to Cost Codes:

Time Tracking
To Dos
Daily Logging
Punch Lists
Checklists
OnCost™ Estimating
Client Selections
Change Orders
Invoices
Requests for Information (RFIs)
Submittals
Transmittals
Calendar Events
OnPlan™ Schedule Tasks

Using Cost Codes across ConstructionOnline will allow your team to stay organized, boost the visibility of your costs, and open up more in-depth reporting options that your company can use to support better decision-making and enhance the success of your projects. Learn more about the benefits of ConstructionOnline Cost Codes here.

What is the difference between Cost Codes and Costbooks in ConstructionOnline?

ConstructionOnline Cost Codes were designed to help organize construction data across all facets of construction project management. The Cost Code system—consisting of Lists, Divisions, and the Codes themselves—ties numerous features together based on the type of work being completed, boosting visibility for each division cost and allowing you to stay organized and informed throughout the construction process. To learn more about ConstructionOnline Cost Codes, visit this FAQ.

ConstructionOnline Costbooks were designed to centralize construction cost information into a single database so that your company can streamline estimate creation, improve estimate accuracy, quickly apply cost updates, and integrate estimate and takeoff data. ConstructionOnline Costbooks are made up of Costbook Items and Assemblies which can be organized to support every company's unique cost structure. To learn more about Costbooks in ConstructionOnline, visit this FAQ.

How do I create a new Cost Code List in ConstructionOnline?

Cost Code Lists can be created in ConstructionOnline from scratch or by import. Step-by-step instructions for creating a new Cost Code List from scratch can be found here. Step-by-step instructions for importing new Cost Code Lists can be found here.

Can I import a custom Cost Code List into ConstructionOnline?

Yes! However, before importing any Cost Code Lists into ConstructionOnline, we recommend you learn how Cost Codes function in our system as each individual construction company and each construction management software utilizes Cost Codes differently. ConstructionOnline's Company Cost Codes are designed to help organize construction data across all facets of your construction project management for visibility and reporting purposes. You can learn more about ConstructionOnline Cost Codes here. If you have any additional questions about our cost coding system, don't hesitate to scheduling a one-on-one training session with one of our Product Specialists—which are free of charge.

Once you have an understanding of the intended functionality of ConstructionOnline's Cost Codes, visit this article for step-by-step instructions on importing the list into ConstructionOnline.

How do I enable Cost Codes for my Project?

Cost Codes can be enabled for your ConstructionOnline Projects by using the following instructions:

Navigate to the desired Project via the Left Sidebar.
From any tab, click on the Project Name in the top-center of the browser window.
From the dropdown menu, select "Edit Project Details".
Within the Project Details window, navigate to the Cost Codes tab.
Within the Cost Codes tab, toggle "Cost Codes On" which should turn the toggle and surrounding area green.
Then, within the "Use for this Project" column mark the 🔵 dot next to the Cost Code List you wish to use for the Project.
Once you've finalized your Cost Code List, click the blue "Save" button to save your updates.

How can I edit existing Cost Code Lists?

Cost Code Lists can be edited/renamed by right-clicking on the desired list and choosing "Edit List" from the dropdown menu. Individual Cost Codes can be edited by right-clicking on the Code and selecting "Edit Code" from the dropdown menu.

The only exception to these instructions are the preloaded CSI and NAHB Cost Code Lists. These lists cannot be edited within ConstructionOnline; however they can be exported to Excel where edits can be made within the Excel file and re-imported back into ConstructionOnline.

If you're looking to edit multiple lines at one time, we recommend exporting the list to Excel, making your desired edits, and then re-importing the list back into ConstructionOnline. This will give you the flexibility to make all of your edits at once.

Can I duplicate an existing Cost Code List?

Yes! Cost Code Lists can be duplicated by right-clicking on the desired list and selecting "Duplicate List" from the dropdown menu.

How do I add Cost Codes to my Estimate?

To add a Cost Code to an Estimate Category, Subcategory, or Line Item, first, ensure that you have Cost Codes enabled within your Project's Details. Then, follow the step-by-step instructions for adding Cost Codes to Estimate Categories, Subcategories, or Line Items found here!

What is the difference between the Code column and the Cost Code column in OnCost Estimates?

The Code column that can be displayed within OnCost Estimates allows you to define cost codes for your Estimate Subcategories and/or Line Items via manual entry. These codes are not attached to Company Cost Codes or any existing Cost Code List.

The Cost Code column allows you to assign cost codes from an existing Cost Code List within your Company Cost Codes to Estimate Subcategories and/or Line Items via auto-entry. Simply start typing the desired code within the Cost Code column and ConstructionOnline will populate matching results from an existing Cost Code List to select from.

How can I hide the Cost Code column in my Estimate?

The Cost Code column can be hidden through the Show/Hide Columns function or by right-clicking on the Cost Code column header and selecting "Hide This Column" from the dropdown menu. Step-by-step instructions and more information regarding displaying/removing Estimate Columns from view can be found here.

What is the relationship between Cost Code and Cost Impact?

While "Cost Code" and "Cost Impact" are two terms often used within the construction industry, they refer to different concepts. Cost Codes are a standard set of numeric or alphanumeric values that represent common construction expenses, allowing companies to track, manage, report, and catalogue costs & spending throughout a project. For example, the Construction Specifications Institute's (CSI) Cost Code for Concrete Slab Foundations is "3-320".

Cost Impact refers to the effect that a change, deviation, or event has on the overall project cost—or the difference between the expected and actual cost. For example, let's say you're building a commercial office building with an original plan to install a specific type of flooring material that costs $10 per square foot across 5,000 square feet of office space. However, during the construction process, your client expresses a desire to upgrade the flooring material to a higher-quality material that costs $15 per square foot in 2,000 square feet of the office space. The original cost of flooring for this project was going to be $50,000 ($10 x 5,000). But with the change request, the cost of flooring for the building will be impacted by $10,000 ($15-$10 x 2,000). So, the total flooring cost will now be $60,000 ($50,000 being the original budget and $10,000 being the Cost Impact).

ConstructionOnline Users will find Cost Impact fields across the platform in places such as Punch Lists, Checklists, Change Orders, RFIs, Submittals, Transmittals, and some Daily Logs.

How do I assign Cost Codes to a Change Order?

Cost Codes can be assigned to Change Orders by following the step-by-step instructions detailed here.

Can I associate Cost Codes to a timesheet?

Yes! Cost Codes can be added to Time Sheets during creation or at any point by editing the Time Sheet. However, please note that in order to add a Cost Code to an employee's Time Sheet for a Project, a Cost Code List must be assigned to that Project. If no Cost Code List is assigned, ConstructionOnline will prompt you to assign one within the Cost Code field, or you can do so by following the step-by-step instructions outlined here, and then edit the Time Sheet. Only Company Admin Users or the Project Creator can add a Cost Code List to a Project.

Why would I use a Cost Code in my Punch List or Checklist?

Construction cost codes are a standard set of values that represent common construction expenses, allowing companies to track, manage, report, and catalogue costs & spending throughout a project. By regularly assigning Cost Codes to the construction Punch Lists and Checklists in each of your ConstructionOnline Projects, your company can:

Analyze costs by specific categories, making it easier to identify trends, areas of high expenditure, or recurring issues to inform future decision-making and resource allocation
Improve cost tracking and budget management, allowing you to track and manage the costs associated with addressing specific issues or deficiencies
Create historical records that can be valuable for benchmarking, comparing project performance, and making more informed decisions in the future
Strengthen your financial reporting, both internally for your project management processes and externally for stakeholders and clients

Additionally, assigning Cost Codes system-wide ties different ConstructionOnline features together based on the type of work being completed—resulting in more organized construction cost data across all facets of your project management.

Does ConstructionOnline provide any report options for Cost Codes?

Yes, ConstructionOnline provides a Cost Code Report via its powerful TrueVision Business Intelligence toolkit! The Cost Code Report, available for companies with Business and Enterprise ConstructionOnline subscription levels, shows project costs, materials, equipment, tasks, and more assigned to specific Cost Codes. During report generation, Company Users can:

Choose a Cost Code Division or an individual Cost Code to see all related ConstructionOnline Items
Apply Filters like Project, Creator, Assigned Resources, Date, Trade, and more to get specific Cost Code data
Click and drag column headers to the "Group By" row to view results as groups defined by one or more values

This information can be viewed internally within ConstructionOnline or exported to Excel! Additionally, ConstructionOnline provides the option to "Include Cost Codes" across many of its other reporting options.

Have more questions?

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