ETS ‘codes’ are used within an estimating system or accounting system to categorise invoice costs into similar groups such as ‘Site Costs’, ‘Design’, ‘Theft and Damage’, ‘Site Conditions’ and so on. 

Depending on how your system operates, the ETS codes are better set as a numerical system to fit in with purchase order numbering systems and allow for structured reporting to occur. Some estimating systems require a range of numbers, so it is a good idea to give yourself plenty of scope within the code numbers. This is also the reason why numbers are used and not letters as there are only 26 letters to use. If a manual system of reporting is used, letters can be assigned as the codes such as ‘S’ for Site, ‘D’ for Design, ‘T’ for Theft and so on.

This enables any reporting of the costs over periods of time to group the invoices and costs into similar type of costs. For example, all purchase orders for invoices relating to ‘Site Conditions’ would show up together and the monitoring by the business owner and senior management can look for trends, consistent issues or work practices by the same contractor. 

This monitoring should be seen by staff and contractors as part of the ‘Continuous Improvement Process’ (CIP) of the business to get better and improve profit margins without increasing selling prices. It is part of a system of feedback to assist in improving the ways in which the estimating is carried out, design issues are resolved, construction methods can be improved, and the quality of construction is improved.