---
title: "Phased Cost Codes in Ontraccr"
url: "https://help.ontraccr.com/en/article/phased-cost-codes-in-ontraccr"
language: "en"
last_updated: "2025-08-22T18:09:08.640Z"
---

# Phased Cost Codes in Ontraccr

## 🧾 **Phased Cost Codes in Ontraccr**

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### 📘 **Overview**

**Phased Cost Codes** allow you to break down large cost items into smaller, trackable parts — called **phases**. This is especially valuable for long or multi-stage projects where budget tracking at a single high-level line item is too vague to provide meaningful insights.

By enabling phases on a cost code, you can allocate its budget into multiple parts (e.g. by floor, section, or milestone) and then track progress per phase.

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### **🧩 What Is a Phase?**

A **phase** represents a distinct, measurable portion of a project.

Examples:

-   “Level 1,” “Level 2,” “Level 3” for a six-story building
-   “Foundation,” “Framing,” “Finishing”
-   “Q1 Install,” “Q2 Install”

Phases are not separate projects — they are **subsections of cost codes within a single project**.

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### **🛠️ How to Enable Phasing for a Cost Code**

1.  While adding cost codes in **Step 3** of the project setup, look for the **“Phased”** button beside each cost code.
2.  Click the **Phased toggle** for any code you want to split into phases.
3.  Proceed to **Step 5 (Budgeting)** — phased codes will now have an additional **Phases section** at the bottom.

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### **🧾 Adding Budget to Phased Codes**

1.  In **Step 5: Budget**, scroll to the **Phases** section.
2.  For each phase:
    -   Click **Add Phase**
    -   Give it a name (e.g. “Level 1”)
    -   Under that phase, click **Add Cost Code**
    -   Select any cost code that was marked as **Phased**
    -   Enter the budgeted amount (cost or hours)
3.  Repeat this for as many phases as needed

💡 Only cost codes marked as “Phased” will be available for use in the Phases section.

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### **📊 Why Use Phases?**

-   Provides **early visibility** into budget trends (vs. waiting until end of project)
-   Helps project managers spot overruns in one stage and **course-correct early**
-   Breaks long jobs into **actionable checkpoints**
-   Supports better labor distribution — e.g., shift lower-wage workers to later phases to save costs

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### **🧠 Real Example**

You have a cost code for **“Labor - Electrical”** with 10,000 budgeted hours.

Using Phases:

-   Level 1: 2,000 hours
-   Level 2: 1,000 hours
-   Level 3 to 6: 1,000 each

Now, after finishing Level 1, if you're already over 2,000 hours, you know to investigate and adjust labor strategy before proceeding to the next phase.