Cost Codes vs Cost Types — What’s the Difference?

Jobpac uses both cost codes and cost types to organise project costs. They work together, but they are not the same. This article explains the difference between them and how they combine to form cost centres.

What is a cost code in Jobpac

A cost code represents a specific part of the project’s work breakdown structure. It focuses on what work is being done.

Key points about cost codes:

• each major activity or element of the job is given its own cost code
• cost codes are usually alphanumeric and follow a structured coding scheme
• they help you group costs by sections of work, such as foundations, structure or finishes

What is a cost type in Jobpac

A cost type describes the nature of the cost, such as labour, materials or subcontract. It focuses on what kind of resource or expense is involved.

Key points about cost types:

• cost types are defined at company level and used across many jobs
• each job uses a subset of these cost types
• examples include salaries, construction labour, materials, subcontract, internal plant and external plant

Cost types make it easier to analyse costs by resource category across projects.

How cost codes and cost types work together

When you combine a cost code with a cost type, you get a cost centre. This combination tells you both which part of the job the cost relates to and what kind of cost it is.

For example:

• one cost centre might represent subcontract costs for demolition
• another cost centre might represent materials for demolition

By separating these, you can see whether issues on a cost code are driven by labour, materials, subcontract or other cost types.

When to focus on cost codes vs cost types

Both cost codes and cost types are useful, but in different ways.

You may focus on:

• cost codes when you want to understand how a particular part of the project is performing overall
• cost types when you want to compare how different resource categories are performing across many jobs

By using both, you can answer questions like “Which parts of the job are over budget?” and “Are labour costs or subcontract costs causing the issue?”

Why the distinction matters

Understanding the difference between cost codes and cost types helps you:

• design a cost structure that supports both project and company level reporting
• control costs at the right level of detail
• communicate clearly about where and why costs are changing

Cost codes and cost types are two halves of the same picture. Together, they help Jobpac provide meaningful and flexible project cost analysis.