BusinessHow to Implement Time Tracking for Your Construction Business

How to Implement Time Tracking for Your Construction Business

Construction projects are complex and involve lots of moving parts. Jobs frequently go over budget and get behind schedule. A project that takes more time to complete than anticipated leads to higher labor costs…and potentially lower profits. One way to make more accurate estimates and help keep profits strong is with time tracking.

What is time tracking?

Time tracking is how businesses log employee work hours. In construction, time tracking is essential for paying employees and estimating labor costs. 

The importance of time tracking in construction 

Whether you use construction accounting software or keep track of time manually, understanding how many hours it takes your team to complete tasks and projects can help you:

Improve job estimates. Cost estimate similar projects accordingly to reduce underbilling scenarios.

Plan your crew. Assemble the optimal size crew based on a similar past job.

Minimize surprises. Anticipate–and make allowances for–common issues that may come up, such as illnesses, bad weather, equipment breakdowns, or inspection delays.

Build client relationships. Accurate breakdowns of costs and hours help build trust with clients and assist them with budgeting. 

Identifies issues. Time tracking reports can help you monitor employees and identify problems that may be impacting project progress or profitability. 

Three ways to track time 

Let’s look at some ways you can implement time tracking for your construction business and tools you could use to streamline the process.

Paper timesheets

The simplest–albeit old-school–way to record time is with a paper timesheet. Employees manually fill out each task and project’s start and end times. While this method may be relatively easy to implement, it is not the most accurate. Human error can mean incorrect digits–and inaccurate time calculations, including rounded or estimated hours. 

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Filling out paper time sheets also takes valuable minutes from your crew’s workday, and paper documents can get misplaced or damaged. Your payroll and bookkeeping teams may have difficulty deciphering handwritten numbers or information covered by a coffee stain.

Online spreadsheets

Excel, Google, and other spreadsheets eliminate the handwritten element but still require your team to find the spreadsheet and enter start and end times. It can be a tedious task. Your time tracking may be on a computer, yet many related processes, such as pulling reports, may need to be completed manually. 

And as your business grows or operations change, you’ll need to modify your spreadsheet. Formulas may require updating, and organizing the data can become increasingly complex. And since spreadsheets do not equal automation, someone will still have to compile all the information to create reports—which can open the door for errors. 

Spreadsheets are a step up from paper logs. Still, its drawbacks as a time, attendance, and project tracking method may not be suitable for construction businesses that need more flexible, automated, and scalable options.

Construction time tracking software

The most robust time tracking tool is construction time tracking software. Using this type of system leverages technology and automates a multitude of laborious tasks that can make life easier for you, your crew, and your payroll, bookkeeping, and accounting teams. 

Here are just a few ways the software’s features could support your business and empower your employees. 

  • Simplify employee timesheets. Whether your hard-working crew is at one job site or spread out among several, a construction time tracking system with a mobile time card app can keep up with your busy team wherever they are. 
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Time can be tracked, submitted, and approved directly from the app. It’s accurate, efficient, and takes seconds. You can even use geofencing to set up virtual fences around job sites so that your crew will be alerted when to clock in and out. 

  • Manage the scope of work. Use project tracking tools to budget and track time against entire projects or specific tasks. You’ll be better able to forecast future job costs and completion times and make more informed job quotes.
  • Oversee teams and enhance employee accountability. Timesheet software holds your workers accountable for their time and lets you oversee your entire team at a glance. You may even have access to a GPS tracker that updates the location of on-the-job employees.
  • Track labor costs. Construction time tracking software can help you keep track of labor costs so you’ll understand how long your team spends on each job. Compare budgeted to actual hours so you can price and schedule similar new projects accordingly. 
  • Get a picture of profitability. Gain real-time insights into how much income you’re generating and the profit margins for all your projects. You’ll immediately know if you need to pivot to control costs. 
  • Sync with payroll and accounting. You track labor time, set up other budget lines, and sync them to your construction accounting software platform. When tax time rolls around, you’ll be ready with lots of the info you’ll need to file.
  • Track non-billable time. Log hours that are not included in project estimates to get a solid understanding of your true costs. Some activities that could potentially be considered non-billable are internal meetings, administrative tasks, educational classes, and putting gas in the truck. 
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Accurate time tracking is better for you, your team, and your overall business. From improving payroll and pricing quotes to discovering performance and project gaps, construction time tracking software is essential to help you save time and build a more robust bottom line.   

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