🚫 STOP MOVING Overages to a Contingency Cost Code & SAVE TIME!

WHY?? BECAUSE CHS HAS THE ESTIMATED COSTS AT COMPLETION WINDOW THAT CLEARLY SHOWS OVER & UNDERS AND TOTALS THEM UP FOR YOU AND YOUR COSTS PLUS CUSTOMERS!!

It might be tempting to move overages from a specific cost code into a general contingency code—but doing that can actually create more problems than it solves. Here’s why we recommend leaving the overages in their original cost code:

✨ How CHS Makes It Easy
CHS eliminates the need for “contingency dumping.” You can simply scroll through your cost codes on the Estimated Costs At Completion (ECC) active window, and instantly see which centers are over or under. At the same time, CHS gives you a grand total of all over/under amounts—so you get both the detail and the big picture without having to reclassify anything into a generic contingency bucket.

That way, you keep visibility, accountability, and customer transparency—while saving yourself the extra work.

You can spend a lot of time making special entries to move overages to a contingency cost code and what will you get for it?……

1. You lose visibility into what really happened.
If you move the overage, you can’t see where the estimate was off or where unexpected costs came up. Keeping overages in place helps you evaluate future bids and improve your estimating accuracy.

2. It removes accountability.
Each cost code shows who was responsible, what the original budget was, and where it went off track. Using contingency as a dumping ground makes it harder to see who needs to adjust or why something went over budget.

3. It skews your profit tracking.
Job costing is about managing gross profit. When costs are shifted around, your reports become less useful. You might think you’re on budget—when you’re not.

4. It defeats the purpose of cost codes.
Cost codes are there to help you analyze job performance and make informed decisions. If you hide overruns in contingency, you miss out on the insights those codes provide.

5. It hurts customer transparency.
Your client expects to see how and where their money is being spent. Moving overages to contingency can make it look like you’re trying to cover something up—even if that’s not the case. Being upfront about overages in the right category builds trust and shows you're running a professional, transparent operation.

✅ Better Approach: Build Contingency into Each Budget Item

Instead of reacting to overages later, plan for variability up front—right at the cost code level.

In CHS, you can:

Enter the vendor’s bid amount,
Add a contingency percentage (like 5%),
And CHS will automatically calculate the full budgeted amount for that cost code.

This gives you breathing room for surprises—without hiding where the money went.

You can also attach a copy of the vendor’s actual bid to that budget line. That way:

You (and your team) can quickly reference the original quote
The bid is visible during cost entry, PO creation, or job cost review
No more hunting through emails or folders

👉 CHS helps you plan smarter and stay transparent—from estimate to final cost.