Cost Coding Structure

Mimoune,



Reporting entities should report the full

costs of outputs in general purpose financial

reports.



Each should accumulate and report the costs of its activities on a

regular basis for management information

purposes.



You can add your CSI codes (example, 03000 for all concrete works) to your financial cost account code taking into consideration the code limitations as highlighted by Oliver. If you’re allowed only to two characters to add then use "03". With this unifier code, it would be easy for you to filter/find all costs related to any work discipline.



HTH,

R. Catalan

sorry to hijack the thread with my ’junior’ kind of questions



but what about financial accounting( GAAP, IFRS), as they use different kind of cost account, and have different target audience !?



mimoune



best regards

All,



A good practice that I have learned is to convert the Contract BOQ to a Cost-Coded BOQ/Activities using CSI codes.



Then you start building your schedule using the above as one of your reference.



Regards,

R. Catalan

Zubair,



Check the reporting requirements of your sponsor and also the coding limitiations of the financial software you are using (SAP, Agresso etc).



If you align all 3 then its makes any weekly/monthly report easier and means you won’t have to create various activity/cost codes in you planning software.

Zubair,



The coding structure developed by Construction Specifications Institute (CSI) is very helpful for organizing data about construction requirements, products, and activities.



You can use it also as your cost coding structure. The CSI Codes covers all construction requirements from General Requirements (Division 1) to Electrical Works (Division 16).



This code works as your unifier for:

- cost accounts (P3/P6 Program)

- cost codes (organizing cost data in estimates, budgets)

- reference keynotes on drawings

- for filing product information and other technical

data

- cost accounts in primavera contract manager (expedition)

- part of your chart of accounts (Accounting) for tracking actual costs

- can be added to your Activity ID if you want to identify work type

- and many more usage



You can Google to search the CSI Codes.



Hope this helps,



R. Catalan

It depends on the level of detail that you are going to use and how it fits with the rest of the coding structures in the programme and how it fits with the procurement philosphy of the company/contractor.



You should have a brief discussion with your procurement team.

Zubair,



Here are a couple of publications that may be helpful;



"Unified Classification for the Construction Industry", and

"Common arrangement of work sections for building works, 2nd edition."



These are very good reference documents and they will help you to form a recognised structure which can be used for WBS or CBS.



I WILL NOT FORWARD THE DOCUMENTS ON TO ANYONE, THEY ARE TOO BIG - SO DON’T ASK!!



If you want them go to Amazon or the ICE or RIBA.



David.

Zubair,



A cost code is defined in the SCL Protocol as;



"A unique identitiy for a specified element of work. A code assigned to activities that allows costs to be consolidated according to the elements of a code structure"



The structure of the cost code could be similar in form to the WBS (for Work costs) or the PBS (for Product costs).



David.