Sub Specialty Contractor

  • 1.  Cost Codes for Electrical Contractor

    Posted 06-03-2021 17:09
    Hello All!

    We are new to cost codes and we are having a difficult time agreeing on what should be on there. Can anyone share a template or cost codes that work for an electrical contractor? Our goal is to input this into Foundation and Timekeeping software so we can track our budgets better. Any information on best practices to implement and achieve this would be much appreciated!

    Joshua Reyes

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    Joshua Reyes
    Vice President
    Reyes & Sons Electric, Inc.
    Sylmar CA
    (818) 365-2030
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  • 2.  RE: Cost Codes for Electrical Contractor

    Posted 06-03-2021 17:26
    Edited by Joshua Reyes 06-03-2021 17:31
      |   view attached

    Here is what we have so far. Is this in the right direction or do we need to be less specific?


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    Joshua Reyes
    Vice President
    Reyes & Sons Electric, Inc.
    Sylmar CA
    (818) 365-2030
    ------------------------------

    Original Message


  • 3.  RE: Cost Codes for Electrical Contractor

    Posted 06-03-2021 17:29
    <google-sheets-html-origin>
    Cost Code Description
    100 Demo
    200 General Labor
    300 Electrical Site
    400 Electrical Gear
    500 Electrical Rough-in's
    600 Lighting & Lighting Control
    700 Telecom
    800 Fire Alarm
    900 Change Order/T&M
    </google-sheets-html-origin>
    OR does this look better?

    ------------------------------
    Joshua Reyes
    Vice President
    Reyes & Sons Electric, Inc.
    Sylmar CA
    (818) 365-2030
    ------------------------------

    Original Message


  • 4.  RE: Cost Codes for Electrical Contractor

    Posted 06-04-2021 11:55

    Hi Joshua,

     

    This is what we use.  I would go less specific; I don't think our people would be able to properly separate their time into those buckets.

     

     

    Very truly yours,

    Carolyn Schaeffer Conboy, CPA

    VP-Finance | Schaeffer Electric Company

    p: 314.815.3254

    f: 314-892-3320

    www.schaefferelectric.com

    4667 Green Park Road

    St. Louis, MO 63123

    PLEASE NOTE:   Under NO circumstances do we initiate changes to our payment/wiring instructions via email.  The safety of your funds and ours is of the utmost importance to us

     




    Original Message


  • 5.  RE: Cost Codes for Electrical Contractor

    Posted 06-07-2021 10:53
    Hi Joshua,

    I find it helps to remember the purpose of cost codes - 1: to help you measure your performance against the estimate made at bid time, (thus learning what went well and what did not) and 2: to help measure cost to complete (this feeds the over/underbilling entries for WIP).

    To really be effective, cost codes need to be aligned with the way a job is estimated. The second critical judgement comes from how effectively the data can be segregated in the field as the work is performed - too many codes that can't be reasonably captured as the work is performed will subvert all value of coding. Finding the balance requires thoughtful input from estimating and project management, and needs to be continually adjusted and improved.

    Terry
    Terry Armstrong, CPA
    Chief Financial Officer, Treasurer
    (717) 264-2168


    Original Message


  • 6.  RE: Cost Codes for Electrical Contractor

    Posted 06-04-2021 08:05
    Our Cost Codes are:

    Mobilization/Demobilization
    Demo 
    Temp Power
    Underground Rough
    In-Wall Rough
    Overhead Rough
    Branch Circuit Wire Rough
    Feeders 
    Switchgear/Panels/Transformers
    Lighting
    Device Trim Out 
    Equipment Connections 

    We are newer to this in the past couple years, and as we have had some jobs close out we are making tweaks depending on if a job is an MC Cable project or not to the Rough In cost codes.  


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    Courtney Erikson CCIFP
    Office Manager
    All-State Electrical Contractors
    Macon GA
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    Original Message


  • 7.  RE: Cost Codes for Electrical Contractor

    Posted 06-04-2021 08:28
    Hi Joshua,

    You can take a look at CSI standards or NECA's Manual of Labor Units as a guideline for setting up Cost Codes.

    We are currently going through a new ERP implementation.  We are planning on using the CSI standards to set up our estimates in order to generate more meaningful job costing reports.  This will also be beneficial when calculating WIP.

    Please reach out if you would like to discuss.

    Teresa Cockeram




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    Teresa Cockeram
    Controller
    Dagostino Electronic Services
    Pittsburgh PA
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    Original Message


  • 8.  RE: Cost Codes for Electrical Contractor

    Posted 06-04-2021 13:41
    The main thing is to consider what you want to do with the data you are collecting.  Do you estimate projects down to a certain level?  Do you set up project budgets that are super detailed?  Do your field crews split up their time accurately?  Cost codes are just another tool.  The more complicated the tool, the harder it can be to teach people to use and the more likely you won't get accurate results.  I suggest coming up with cost codes that the field can use and make sense for very unique tasks.  We have 20 cost codes and on most of our smaller projects only one of them ever gets used.  If your estimates flow to a project budget and the field codes time accurately to those cost codes, you have useful information to use on future estimates.  You can see what tasks you are winning on, which ones need to have more time and come up with more accurate estimates, win more work and make more money....

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    Matthew Hill
    CFO
    Vannoy Electric, LLC
    Wasilla AK
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    Original Message


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