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Cost control

Cost codes that field staff can actually use

By Review.LivePublished 3 min readHow we write

The payroll clerk calls on Monday: a third of last week's hours on the warehouse job were coded to "general labour". The foremen had a list of 140 codes, several nearly identical, and picked the one they could find. Now nobody can tell whether the footings or the slab used those hours.

Hands hold a clipboard of grid paper while a pen marks up a sketched detail labelled with a numbered note.
Photo: ThisisEngineering on Unsplash

A code list built for accounting is too long and too fine for the field. Faced with dozens of similar choices, a foreman picks a catch-all, and the data looks precise but cannot be trusted. A code list is only complete when each code has a definition of what goes in it; a field list also has to be short, use site words and match how the labour was estimated, so that hours can be compared with the budget.

Designing the field list

  1. Start from the labour estimate: one field code for each activity with its own labour budget. If the estimate did not split two activities, do not ask the field to.
  2. Keep the working list short: the codes a crew needs this month fit on one card, and the office keeps the rest.
  3. Name each code in site words, such as "Footings: form and strip", and let the office map each name to its own numbering.
  4. Write a one-line definition of what each code includes and excludes; for example, whether edge forms belong to the slab or to formwork.
  5. Give separate codes to what you need to see separately: each change order or time and material (T&M) ticket, standby time and rework.
  6. Allow a general code only with a written rule for what it covers, and review its hours every week.
  7. Check the first week's timesheets with each foreman, and fix misunderstandings before they become habits.

Common mistakes

  • Issuing the office's full code list to the field.
  • Codes that differ only by a digit or a letter.
  • No code for extra work, so T&M hours vanish into base work.
  • Correcting codes in the office without telling the foreman why.

Checklist

Before you issue a code list

  • Each base-work code matches a line in the labour estimate
  • This month's codes fit on one card
  • Every code has a plain name and a one-line definition
  • Change orders, standby and rework have their own codes
  • Any general code has a written rule
  • First week's timesheets reviewed with each foreman

Check your understanding

A foreman codes a day of patching damaged slab edges to "slab on grade". What is lost?

Show the answer
The rework hours now look like slow slab work, so the slab's productivity appears worse than it is and the cost of the damage disappears into base work. If another trade caused the damage, there is no clean record left to support a back charge. A separate rework code with a clear definition prevents both.

Sources

  1. Recommended Practice 10S-90: Cost Engineering TerminologyAACE International · accessed