Do You Really Need That Cost Code?
Project Cost Code Planning – such a love/hate relationship we have with cost codes. Project controls professionals can spend endless hours discussing, debating and tweaking the required codes for their project. Understandably so, as there can be so many layers of complexity of how to design the right code structure. We get many questions from companies about what code structure is the right structure for them, and we spend a great deal of time working with them to help define it. We often get asked if there’s a standard coding structure they can just lift from some standards body and simply use it. Or if we have one they can use, or what do other companies use, etc. Unfortunately, there’s no single source where a robust project-level code of accounts is fully defined for public or paid-for access for every industry. There are, however, some standards and samples that have been defined for a variety of industries published by, for example, the AACE (http://www.aacei.org/) and CSI (http://www.csinet.org) which can provide you a significant jump on defining the system that best fits your business. You’ll need to be a member, but well worth it. Here are a few teasers that give you the idea: http://www.aacei.org/toc/toc_20R-98.pdf www.aacei.org/toc/toc_21R-98.pdf http://fire.nist.gov/bfrlpubs/build99/PDF/b99080.pdf It hurts me to tell you this, but beyond resources like that, you’re likely going to have to bear down, get into it, and define your own coding structure. However, I do have some good news for you. If you’re using a cost management system, your coding efforts can be significantly simplified. And that’s because a software system that understands concepts like a Cost Breakdown Structure, Resource Codes, Discipline Codes, Material Codes, etc. – can do a tremendous amount