Advantages of Tracking Hours in Construction

Time tracking time clock for construction

Time tracking software for construction companies is an important part of a business when tracking hours worked. A modern time clock has done a world of good to many industries and resulting in accurate employee payroll. Employers have managed to improve payroll errors and the losses incurred through excess hours unaccounted for.

If you're looking for reasons to adopt a time clock calculator in your business, keep reading. The following are some of the benefits of using time-tracking technology in construction. 

Aligning an Online Time Clock With Payroll

Most of the benefits of adopting a time clock calculator in construction boils down to the payroll. The payroll department receives the most impact of time tracking because employee time data records determine the amount one gets with every paycheck. 

When employee time records are handwritten, there is a greater risk of errors due to illegible writing, inaccurate time entry, time theft and so on. An online time clock can also integrate with your payroll provider to streamline the process.

The American Payroll Association (via Business 2 Community) found an error rate of “1 to 8% of total payroll in companies that use traditional timecards.” Furthermore, about 40% of small businesses “incur an average of $845 a year in IRS penalties” due to mismanagement of payroll processes.

However, when time tracking software replaced handwritten time entries, payrolls became easier to process; time and energy are channeled into other areas, thus improving productivity. The risk of overpaying or underpaying is eliminated, and employees receive an accurate paycheck. Businesses and wages have to be in compliance with the Fair Labor Standards Act , which seeks to protect employees. The billable hours and overtime must be recorded to ensure that employees and employers have a fair deal at the end of the workday.

How to Calculate Man-Hours in Construction

Man-hours are used to measure the effort employed to complete a project. 

To calculate the man-hours invested in a construction project, multiply the number of people who worked on that project by the total time (in hours) it took to complete it. For instance, 3 roofers working 6-hour days take 4 days to complete a construction roofing project. The man-hours can be calculated accordingly: 

Labor × hours per day × number of days = 

3 × 6 × 4 = 72

An average of 72 man-hours were put into this project. 

Man-hours help a contractor estimate the amount of time it will take to finish a particular project, and the amount of human labor that will be needed to complete it.

Using a time clock calculator makes the process a lot easier and more accurate, because at the start of a project, the employees will simply punch in when work begins and punch out when work is done for the day. A supervisor will also have a visual of a digital timecard in real-time.

Construction contractors get a clear understanding of the average time and effort it takes to complete a project. The contractor can then allocate resources properly and avoid waste time when preparing for subsequent projects.

Reduce and Prevent Time Theft

A lot of companies are faced with time theft problems. In fact, according to the American Payroll Association, about 75% of businesses in the United States incur losses resulting from time theft yearly.

This may not always be out of laziness or wrong work ethics on the employees’ part, but also poor planning and lack of time management. This exact situation is what a time clock software fights against. 

When work hours are tracked using cloud-based software, even if employees decide to take extra 5 minutes for lunch, the employers do not have to bear the cost of the time wasted. This means that employees are held accountable for their work hours, and the employers do not have to make up for stolen time every year.

Accurate Job and Project Costing

More often than not, construction professionals make errors in estimation when trying to project the cost of a job. The budget may sometimes run short, causing a kind of friction between contractors and clients.

When construction hours are tracked using time calculating software, the contractor or the project manager gets a solid insight on how much time a specific project could take, the man-hours, and the cost of resources needed for the project, including labor that would be needed in subsequent projects of that nature.

Some types of time tracking software even have a kind of job and project costing program attached to them, as a bonus for clients to help speed up the whole process. This helps one take into account all the costs that would likely come up in project execution, helping make sure the client understands and prepares for the said amount. This also ensures that the amounts across all project paperwork from the contract to preliminary notices and change orders are consistent.

This way, employees, employers and clients have a win-win situation.

Anticipated Labor Requirements

Having a time tracking app on the ground during construction really makes a difference. On the side of the contractor, an additional benefit of measuring man-hours is that it provides them with an accurate estimate of how much workforce is needed for subsequent related projects.

This is an advantage in cases where a project has to be carried out in a short time, because the contractor knows how much extra labor is needed to complete the project within the specific timeline.

The employees too, knowing what is at stake, will devote themselves and their expertise to the project on ground, avoid distractions, and toss any thought of time theft.

Monitored Team Performance

A time clock calculator helps an employer know exactly how the team is handling projects — if they complete projects within the specified timeline or not. This, again, can be determined by calculating man-hours.

The employer gets to appraise the speed at which employees execute projects, whether they fall behind or meet the schedule. If it's in the negative, the supervisor can find out the root cause of the delayed project or provide motivation for the workers to carry on.

The appropriate time clock software will provide employee surveys for your construction company to ask questions when starting their day. These questions may inlcude:

  • Do you have the proper equipment for the day?
  • Have you renewed your commercial driver's license?
  • Did you take this year's safety test required by OSHA?

Furthermore, monitoring team performance through time tracking is essential because it gives employees an avenue to lay out any difficulties encountered in a project to the supervisor, averting the risk of irreversible damage in the long run.

Conclusion to Tracking Hours in Construction

Tracking hours at work might seem inconsequential, but it does go a long way in saving time, cutting losses and increasing productivity in the construction sector. The result is a workforce that is more dedicated to the project, and the outcome of which is a satisfied client and a happy contractor. 

What is better than knowing your employees are giving their best to assigned projects and are getting paid what they deserve?

Accurately Track Construction Hours

Toss your paper timesheets and save time.

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