You are filling out a G702 pay application and need to assign cost codes to each line item. Your company uses one system, the architect uses CSI MasterFormat, and the owner’s rep wants NAHB codes. Which set is correct? The short answer: there is no single AIA cost code standard. The AIA publishes contract forms, not cost codes.
This guide compares the three most common coding systems used with AIA billing – CSI MasterFormat, NAHB, and custom codes – so you can pick the right one for your project and avoid the mismatches that delay payments.
What are construction cost codes?
Construction cost codes are a defined list of codes used for tracking, managing, and reporting on the amounts, quantities, budgets, profit, and other account information associated with the job.
Benefits of using construction cost codes
Cost control
Quick and easy way to identify and analyze how money is spent on the project.
KPIs tracking
Track and manage KPIs such as estimated cost, cost estimate, current costs, and more.
Ideal for companywide use
Using the same codes companywide makes tracking and analyzing costs, errors, and forecasts for all stakeholders easy.
Visualize profit centers
Full analysis for visualizing profit centers and problematic areas.
Estimating
It gives structure and access to follow the costs in real time to set more accurate and realistic estimates.
Real-time tracking
Let management have a clear job overview and keep all the stakeholders engaged.
"Everything has a PO linked to a job number. No one does a job without a purchase order, so when I look at margin I know it’s the true margin."
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What is AIA?
The American Institute of Architects (AIA) is a professional association with approximately 90,000 members who are licensed architects and other industry professionals. The AIA primarily promotes improved construction practices via education and lobbying. One of the institute’s critical services is its standard AIA contract documents.
What is construction progress billing?
Progress billing is a payment method that provides for regular payments throughout a schedule. It is usually used for large-scale and long-term projects. For example, construction companies bill their customers on an agreed-upon schedule, and the payments are usually made based on the progress made. The same goes for subcontractors who bill their “client,” who is the general contractor responsible for the whole project.
Both parties of the billing process must have agreed on a structure to bill predictably and understandably for the work done. This means that some standardization is needed. It is even better if this standardization is provided by an organization that both parties trust.
Three of the most commonly used AIA contract documents are typically paired together: the G701 Change Order form, the G702 Application and Certificate for Payment form, and the G703 Continuation Sheet form.
What codes should be used for AIA construction billing?
There is no single set of AIA construction codes for construction billing. You can use the CSI MasterFormat, the NAHB cost codes, or a custom coding system. We recommend going with either the CSI MasterFormat or the NAHB cost code system so that every partner – client or architect – you work with also has the experience and recognizes your selected coding system.
If you decide to use a custom coding system, please check with your partners. You want to ensure they accept your decision and are willing to use the alternative coding system.
Choosing the Right System for Your Projects
There is no single set of AIA construction codes. The right choice depends on your project type and what your partners already use:
- CSI MasterFormat – 50 divisions covering commercial and institutional work. Best when architects and owners expect a detailed, industry-standard breakdown.
- NAHB cost codes – Simpler structure designed for residential builders. Easier to set up and understand for smaller projects.
- Custom coding system – Works if every partner on the project agrees to use it. Standard systems are safer when working with new teams.
Whichever system you pick, consistency matters more than the specific codes. Align with your partners early, and use construction billing software that links each code to your budget so you can track costs against what you estimated. Teams using Planyard save 3-4 days per month on financial admin by connecting cost codes directly to purchase orders, invoices, and budget lines.
"At any point, one of the Directors can walk up to me and in two clicks I have all of the information in front of me."
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Link every cost code to your budget
Planyard connects your cost codes to purchase orders, invoices, and budget tracking. See where money is going on every project in real time.