Complete Guide to Time Tracking for Construction

Complete Guide to Time Tracking for Construction

How to Choose, Set Up, and Use It Right

Last Update: 09/2025

Complete Guide to Time Tracking for Construction

Paying your team shouldn’t be a guessing game, and neither should running your crews. But in construction, it’s still common to chase missing timecards, estimate job costs based on gut feel, and rely on spreadsheets that break the second someone updates a formula.

We’ve worked with dozens of construction companies, small crews,residential or commercial contactors,  multi-site operators, you name it, and nearly all of them face the same problems: lost hours, bloated payroll, and bids that don’t reflect the real cost of labor. The good news? You don’t need to overhaul everything. You just need a time tracking system that works the way construction actually works.

This guide walks you through exactly how to choose the right method, avoid crew resistance, and use your time data to stay profitable. Whether you’re replacing paper timesheets or trying to fix payroll chaos, you’ll find real, field-tested advice in the sections below.

Let’s get your team tracking time right, with less friction, more control, and better job outcomes.

Why Time Tracking Matters More Than Ever for Construction

Construction has always been a high-pressure industry. Deadlines are tight, margins are thin, and every labor hour counts. But today’s job sites are more complex than ever, crews are scattered across multiple locations, labor laws are stricter, and clients expect precise billing and progress reports.

Without a reliable time tracking system, your entire operation becomes vulnerable. You lose visibility, make decisions based on bad data, and leave money on the table. Let’s break down the biggest reasons time tracking has gone from a nice-to-have to a must-have.

Payroll Mistakes and Time Theft Add Up Fast

Manual time tracking might seem simple, until payday hits. Errors in logged hours create ripple effects. A few minutes missed here, a few added there, and suddenly you’re dealing with overtime that shouldn’t exist or underpaying someone who’s worked extra.

Even worse, when clock-ins rely on trust alone, it opens the door to buddy punching, where one employee clocks in for another. It’s surprisingly common, especially when crews are large and managers aren’t always on-site. 

Manual entry also causes basic mistakes: illegible handwriting, incorrect dates, forgotten breaks. And if your admin is trying to re-enter those numbers into a payroll system every week, that’s hours of labor that could be avoided, and a ton of risk introduced by human error.

Without Job Costing Data, Every Bid Is a Gamble

Labor is often the single biggest cost in a project, taking up 30% to 50% of your budget. If you don’t know exactly how long past tasks have taken, you're flying blind.

Let’s say you’re bidding on a commercial framing job. You estimate 200 labor hours. But if you’ve never actually tracked how long similar projects took, and who worked them, you’re basing your number on hope. That’s not a strategy. It’s a liability.

Time tracking gives you something critical: historical labor data tied to specific tasks and job codes. With it, you can answer questions like:

  • How many hours did we spend on rough-in plumbing on the last job?
  • Which crews finished faster, and why?
  • Are we consistently going over on demo labor?

Bidding with accurate labor data helps you stay competitive and profitable. That means more wins, and fewer projects that slowly bleed your margins dry.

Scheduling and Compliance Are Getting Harder

It’s not just about hours anymore. Labor laws now demand clear records for rest breaks, overtime, split shifts, and off-site travel time. In states like California, failing to track and document this properly can lead to steep penalties, even if the mistake was unintentional.

Add in multi-site crews, unpredictable weather, and shifting job priorities, and suddenly scheduling becomes a moving target. A worker might spend part of the day at one job, then head to another. Without a system that logs where and when that time was spent, you’re left guessing, and your crew is left confused.

Time tracking tools solve this by logging each punch with location and job code, ensuring compliance and improving clarity. No more guessing who was where or whether breaks were taken. And when audit season comes around? You’ll have a clear, accurate log of work hours, break times, and job sites.

Choose the Right Time Tracking Method for Your Job Sites

No two construction sites are the same. Some crews stay put for weeks. Others move multiple times a day. Some workers have smartphones. Others don’t. That’s why the way you track time has to match the way your team actually works in the field, not how you hope they work.

Let’s break down the most common time tracking methods and what they get right, and wrong, on a real job site.

Paper Timesheets Still Exist—but Don’t Scale

If you’re still using paper timesheets, you’re not alone. Plenty of smaller contractors stick with what’s familiar. But just because it’s simple doesn’t mean it’s working.

Paper is:

  • Easy to misplace
  • Easy to fudge
  • Hard to read
  • Impossible to verify

There’s no way to confirm when someone filled it out, was it at the end of the shift or the end of the week? Did they forget their lunch break again? Is that a 3 or an 8?

And when it comes time to calculate payroll or prepare for a client invoice, someone still has to enter all those hours by hand. That’s time-consuming and error-prone, especially if you have multiple crews or jobs happening at once.

Paper might feel flexible, but it offers zero visibility, no accuracy, and no protection when things go wrong.

Spreadsheets Can’t Handle Real Job Sites

Many construction businesses try to level up from paper with spreadsheets. It’s a step forward, but not a leap. Spreadsheets still rely on manual entry, which means:

  • Crew members or supervisors have to remember to log their hours
  • Files get emailed, copied, and overwritten
  • There’s no live data or validation
  • No GPS, no timestamps, no break verification

And the moment you try to use one spreadsheet for multiple job sites or crews? Things break. Someone forgets to update a formula. Two people enter the same job code differently. You’re stuck hunting through tabs instead of focusing on running your projects.

Spreadsheets are better than paper, but they don’t solve the core issues: accuracy, accountability, and real-time visibility.

Mobile Apps with GPS and Geofencing

This is where time tracking starts to work for you, not against you.

Modern mobile time tracking apps for construction allow your crew to clock in using their smartphones or a job site kiosk, and there is no more handing in paper sheets or calling in hours. You get:

  • Live clock-ins with time and location data
  • Offline support, so they can punch in even without cell signal
  • Accurate timestamps, no guessing later
  • Seamless syncing to payroll or job costing software

For crews that bounce between locations or shifts, this makes a huge difference. You know exactly when and where they started work, and which project they were on.

For example, the owner of a roofing business noticed something strange. Payroll hours looked fine on paper, but jobs were constantly running over budget. One foreman suspected that a couple of crew members were clocking in from the road, before arriving on-site.

They switched to OnTheClock and enabled GPS tracking. Right away, they started seeing where each punch-in actually happened. Sure enough, two workers were clocking in from a gas station three miles away nearly every morning.

To fix it, the manager used OnTheClock’s geofencing feature to draw a virtual boundary around each job site. Now, employees couldn’t clock in until they were physically on-site.

The result? Immediate reduction in padded hours, better crew discipline, and more accurate job costing. No awkward conversations. No micromanaging. Just clear rules and real accountability.

Additional Features to Consider

While GPS and geofencing are essential for location accuracy, the best time tracking tools also simplify how you manage your crew’s time beyond the clock. Look for built-in features like drag-and-drop scheduling, which lets you create or adjust shifts in seconds and instantly notify your team. This is especially helpful when jobs change at the last minute or when covering sick days without scrambling.

PTO tracking is another game-changer. Instead of manually logging vacation and sick time, employees can request time off right in the app, and approvals are tracked automatically. You’ll avoid calendar mix-ups, reduce last-minute absences, and always have a clear view of who’s available.

These extras may seem small—but over time, they save hours, reduce confusion, and keep your projects on track.

Select a System That Solves the Right Problems

It’s easy to think all time tracking tools do the same thing: track hours and export timesheets. But the truth is, most systems are built with office jobs in mind, not job sites. And when you try to force the wrong tool into a construction workflow, it creates more problems than it solves.

That’s why selecting the right system isn’t about finding the “best” software in general. It’s about finding the tool that solves your problems, fits your team, and works in your environment. Here’s how to choose one that actually works in the field.

Ask Your Team What’s Broken

Before you choose any time tracking system, talk to the people who deal with time tracking every day. That means your admin, your foremen, and your crew.

Each role experiences different pain points. And if you skip this step, you risk solving the wrong problem or picking a tool that nobody wants to use.

Ask simple questions:

  • “What’s the most annoying part of how we track time now?”
  • “Where do mistakes usually happen?”
  • “What would make this process easier?”

You’re not just collecting complaints, you’re identifying gaps in the workflow. This input helps you find a tool that fits how your team actually works, not just how you think they should.

Define What You Want to Fix First

No system can fix everything overnight. So narrow your focus.

What’s the number one pain point in your workflow?

  • Is it time theft? Then you need GPS tracking and geofencing.
  • Is it job costing confusion? Then you need job codes tied to reports.
  • Is it payroll problems? Then integrations and approval workflows matter most.

Clear priorities will help you filter tools fast. You won’t waste time comparing fancy dashboards if your real need is reliable mobile access. And when you get clear about outcomes, your team buys in, because they know why the change is happening.

Compare Tools by Real-World Needs

Not all time tracking systems are built for the realities of construction. Some are designed for desk jobs. Others look great in a demo but fall apart in the field. That’s why you need to compare tools based on how your team actually works, not just the features listed on a pricing page.

Start with these questions:

  • Can my crew clock in from their phones, even with spotty service?
  • Does it track location and prevent off-site clock-ins?
  • Can we assign time to job codes for better job costing?
  • Will it sync directly to our payroll system?
  • Is it simple enough for a foreman to use without training?

Those are the real-world needs that matter.

Don’t just check off features, test the tool on a real job site. Let your foreman try it. Watch how your crew responds. Use the free trial to see what breaks.

OnTheClock is used by thousands of construction crews because it checks those boxes: GPS tracking, geofencing, job codes, mobile clock-ins, and seamless exports to QuickBooks, Gusto, ADP, and more. It’s built for the field, not the front office.

When you compare tools this way, you’ll make a decision that actually sticks.

Choose What Your Team Will Actually Use

Here’s the part most companies get wrong: they fall in love with features and forget to ask, will anyone actually use this?

If a tool requires more than three clicks to clock in or constant updates to job codes, your crew will find workarounds or worse, skip it entirely. If it only works on desktop, it’s useless for anyone in the field.

So instead of chasing features, chase usability.

Pick something your foreman can learn in five minutes. Pick something your admin doesn’t need to double-check. And pick something your team wants to use because it makes their job easier.

OnTheClock keeps things simple on purpose. Clock-ins are one tap. Job codes are preloaded. Support is built into the website. That means faster rollout and less resistance, so your team actually adopts the system.

Roll Out Time Tracking Without Crew Resistance

Switching to a new system doesn’t have to be a battle. But it does require a plan. If you launch too fast or skip communication, even the best software will fail. The key is to roll out your time tracking system in phases, give your team space to adapt, and build trust through clarity and consistency.

Here’s how to do it, step by step.

Step 1: Start Small With One Crew or Site

Don’t launch company-wide on Day 1. Choose one site, one foreman, or one crew to start with. Your pilot crew helps you catch bugs, fix policy gaps, and gather feedback, without risking chaos on every job.

Step 2: Train Foremen Before Anyone Else

Your foremen set the tone on every site. If they’re confused or resistant, the rest of the crew will follow. If they understand and support the system, they’ll help drive adoption.

Train them early. Walk them through the process:

  • How to clock in and out
  • How to assign job codes
  • What to do when someone forgets to punch in
  • How breaks should be handled

Once they’re comfortable, they can lead the rollout on their own sites. That saves you time and builds internal accountability.

Step 3: Write and Share a Clear Policy

Once your pilot crew has had time to test the system, use their feedback to fine-tune your time tracking policy. This isn’t just about the software, it’s about setting expectations that everyone understands and follows.

Your policy should answer the basics:

  • When should employees clock in and out?
  • How are breaks handled and recorded?
  • What devices should they use to track time?
  • What should they do if they forget to punch in?

Keep it short, clear, and easy to follow.

Then post it where it can’t be missed: inside trailers, near clock-in stations, or as a pinned message in your crew group chat. If you're using OnTheClock, you can even set automated punch reminders to alert employees to clock in or out at specific times. It’s one less thing for you to chase, and one more way to keep the crew on track.

Address GPS Concerns Transparently

Before launching the system company-wide, take time to address what’s likely the biggest concern: GPS tracking.

Many employees worry that GPS means constant surveillance. If you skip the conversation, you’ll run into resistance, rumors, and mistrust. Be proactive and clear about what GPS is—and what it isn’t.

Reassure your team:

  • GPS is only active during work hours
  • It’s used only for clock-ins and clock-outs
  • It helps confirm who’s actually on-site, not where they are all day

OnTheClock gives workers control over their GPS data and only tracks location when they’re on the clock. Framing GPS this way helps shift the conversation from “they’re watching me” to “this keeps things honest for everyone.”

Track the Rollout for 30 Days and Adjust

The first 30 days are when most issues will show up, missed punches, wrong job codes, or employees forgetting to take scheduled breaks. That’s normal. This is your adjustment window, not your final scorecard.

Watch the data closely:

  • Are certain crews consistently late?
  • Are job codes being used incorrectly?
  • Are breaks being skipped or logged inconsistently?

Use this insight to fix problems early. Retrain where needed. Clarify the policy. Add reminders or update settings in the app.

If you're using OnTheClock, real-time dashboards and daily summaries make it easy to catch mistakes before they hit payroll. These early adjustments can mean the difference between team buy-in and long-term frustration.

Use Time Tracking Data to Improve Projects and Profit

Once your crew is consistently clocking in and out, time tracking stops being just a compliance tool, it becomes one of the most powerful business tools you have. With clean, real-time data, you can reduce waste, improve job costing, and bid smarter on future projects. You’ll stop guessing and start making decisions based on what’s actually happening on-site.

Here’s how to use that data to drive results.

Assign Job Codes to Tasks and Projects

Not all labor costs are the same. Framing takes different time and skills than drywall. Roofing requires different crews than finish work. If you’re just logging “8 hours” for each employee without context, you’re losing visibility, and margin.

When you assign job codes to specific tasks, you can track:

  • How long framing takes vs electrical
  • Which parts of a project regularly run long
  • How much labor goes into cleanup, repairs, or rework

Over time, you’ll see where your jobs bleed time, and where they stay lean.

OnTheClock supports custom job codes, that means you can break down hours by task, crew, or location, and use those insights to tighten your next schedule or quote.

Sync Hours With Payroll Automatically

Manual entry doesn’t just waste time, it causes costly mistakes. Typos, misreads, and miscommunications during payroll add up to overpayments, disputes, and hours of corrections.

Time tracking systems that sync directly with your payroll software eliminate that risk.

With OnTheClock, once time is approved, it can be exported straight into QuickBooks, Gusto, ADP, or other leading payroll platforms. Even better, OnTheClock now offers built-in payroll services, so you can manage everything in one place without juggling multiple systems.That means:

  • No more spreadsheets
  • No more late-night math
  • Fewer errors and faster payroll runs

You’ll save your admin hours every week, and avoid the kind of mistakes that lead to employee frustration.

Get Daily Alerts to Catch Cost Overruns Early

It’s not always easy to spot overages until they hit your budget. A missed break here, an extra hour there, and suddenly a task that was budgeted for 80 labor hours hits 105.

That’s why daily tracking matters.

Set alerts that notify you when:

  • Overtime is about to kick in
  • A worker clocks in late or not at all
  • A job code is missing or misused

These alerts help you address issues before they become expensive problems. Whether it’s an honest mistake or a pattern of waste, you’ll have the visibility to fix it fast.

OnTheClock provides real-time dashboards and daily summaries that highlight missed punches, duplicate entries, and overtime risks—so you’re always a step ahead.

Use Historical Time to Bid Smarter

Bidding is the lifeblood of your business. But if you’re guessing on labor, you’re gambling your profit.

When you have clean time tracking data from past projects, you can quote future work with confidence:

  • How many labor hours did framing take on a 2,500 sq ft job?
  • How long did it take to complete punch lists on commercial remodels?
  • Which crew consistently finishes early without sacrificing quality?

This insight helps you price competitively without undercutting yourself. You’ll know your numbers, and that makes every estimate stronger.

Build a Smarter Crew, One Punch at a Time

Construction moves fast, but time tracking shouldn’t be something you chase. When you’re still using paper, spreadsheets, or unreliable apps, you lose more than just hours. You lose visibility, control, and profit.

The good news? Fixing it doesn’t require a full system overhaul or weeks of training. All you need is a tool that fits your crew and gives you better data.

With the right system, like OnTheClock, you’ll know who’s on-site, what tasks they’re working on, and how labor costs are stacking up in real time. That means better bids, faster payroll, and fewer surprises on payday.

Start small. Get one crew tracking time right. Then build from there.

Because the more clearly you see your hours, the stronger your business becomes.

Ready to Get Started?

If you're still using paper timesheets or chasing down late clock-ins, now’s the time to stop the stress and start tracking smarter. You don’t need a huge rollout or a complicated system to make a difference. You just need a tool that works for construction—fast, simple, and reliable in the field.

Here’s what you can do today:

Try OnTheClock Free and See Your First Month of Data

You don’t need to commit to anything to see real results. OnTheClock offers a 30-day  free trial with:

Setup takes less than 5 minutes. No credit card. No paperwork. Just choose one crew, set it up, and by the end of the week, you’ll already have cleaner, clearer time data than ever before.

Frequently Asked Questions

A

The best way to stop buddy punching is by using GPS and geofencing. With geofencing, employees can only clock in if they’re physically on-site. That means no more clock-ins from the parking lot—or from home. OnTheClock automatically blocks punches that happen outside of your designated job site boundary.

A

If your crews move between sites, you need a system that can track location and switch job codes easily. OnTheClock lets you set up multiple job sites with unique geofences. Employees can clock in and out at different locations throughout the day, and their time is tied to the right site automatically.

A

Yes. With OnTheClock, you can assign job codes to each clock-in. That means you can see how much time your team spent framing, doing drywall, or completing punch lists. Task-level tracking gives you more accurate job costing and helps you plan future projects based on real labor data.

A

Start with your foremen or crew leads. Give them access first so they can model how to clock in, assign job codes, and track breaks. Keep it simple. Use visuals, short walkthroughs, or text reminders. OnTheClock includes guidance and support to help your team get up to speed quickly, without long training sessions.

A

Yes. There’s a free trial, and no credit card is required. You can test OnTheClock with one crew or site to see how it works in the field. Setup takes less than 5 minutes, and you’ll start seeing cleaner, more accurate time data from day one.

OnTheClock Employee Time Tracking

Written by

Herb Woerpel

Herb Woerpel is a copywriter and account executive at OnTheClock, where he helps businesses simplify their employee time tracking and payroll process through clear communication and trusted guidance. With 17-plus years of journalism experience, Herb now works closely with companies to embrace OnTheClock, making payroll and time tracking simpler, faster, and more efficient.

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