Issue link: https://construction.trimble.com/en/resources/i/1520103
The Ideal Level of Detail Getting the right level of detail to meet reporting objectives and requirements is the number-one challenge contractors face in developing an effective cost code structure. One size does not fit all, and the 'sweet spot' between too much detail and too little will vary widely from company to company. Three codes to differentiate between 'small', 'medium' and 'large' pipe could be enough for one utility contractor. There may be no measurable difference, for example, in the process, equipment or labor that company would use to install six-inch or a ten-inch pipe. Another contractor, however, may need 15 different codes to track 15 specific pipe diameters and types that its crews install in order to analyze and adjust operations. A complex coding structure with an excessive volume of codes, however, can be an unnecessary burden on those who have to use it. Employees can end up wasting a lot of time looking up and trying to assign precisely the right code just to generate information at a level of detail that isn't useful or not worth the effort it takes to get it. Extremely granular or specific options also create more opportunities for coding errors, which lead to misleading reporting. Agreeing on reporting goals at the outset can minimize the level of detail and the volume of codes. Another good way to determine how detailed the cost code structure should be is to weigh the cost of the time employees will spend assigning, correcting and reporting on codes against the additional money that the company will earn by acting on the intelligence produced by that effort. START SMALL AND BUILD Starting with the basic codes required and then adding more, as needed, is almost always a better approach than starting with a high level of detail and then trying to eliminate and consolidate codes later. WHAT TO AVOID • Codes too specific to be practical: WM-PVC-06-048-Sand 6" PVC Water Main at 48-inch depth with sand bedding • Codes too generic to be meaningful: E-30 Earthwork • Different codes for the same activity or item in estimating, job tracking and accounting/payroll 5