How to Build Cost Codes for Subcontractors (Step-by-Step)
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In this video, Josh with The Construction CFO breaks down how to build job cost codes for construction companies, including civil contractors, using a practical bucket-based structure that prioritizes clarity over unnecessary granularity. Instead of creating thousands of overly detailed cost codes that add administrative burden without improving decision-making, this approach organizes job cost into core sections such as material, subcontractors, equipment (owned and rented), small tools, labor, direct job expenses (DJE), and general conditions. The system explains how to structure codes in tiers, how to separate production labor from supervision and overhead, how to track equipment in usable monthly buckets, and how to align cost codes directly with your estimating process so you can measure performance in real time and catch margin erosion early. --------- Struggling with cash flow? On this channel, I give advice for subcontractors to fix cash flow through construction finances and operations. Subscribe for free actionable tips! #construction #subcontractor #cashflow #constructionaccounting #CashFlowForecasting #ConstructionFinance #CashFlowTemplate