WorkMax’s The Ultimate Guide to Construction Time Tracking Software

When it comes to construction time tracking, it can be difficult to verify accuracy. A construction jobsite is a busy workplace, supporting a wide variety of roles and responsibilities.

The fast-paced and dynamic nature of jobsite activities makes it difficult for construction teams to document their hours consistently and accurately, potentially resulting in discrepancies for project managers seeking precise labor data. Because of this, it is imperative that contractors have an efficient method to track labor hours.

Previously, US employers have said they have to correct errors on 80% of the timesheets their employees submit. So, how can construction managers verify that they’re tracking their employees’ labor hours correctly? That’s where time-tracking comes in.

If you’re looking to know more about contractor time tracking and why accurate data from the field is so important, you’ve come to the right place. There are many different aspects that time tracking entails and when done correctly, it can be used to help streamline a variety of business operations.

Key Takeaways About Construction Time-Tracking Software:

• Time tracking software helps better construction jobsite management by improving the accuracy of labor hours.
• A mobile time tracking app for construction can help reduce time theft in construction companies.
• Time tracking can serve as a project management, budgeting and compliance tool that allows construction professionals to make more informed decisions.
• Using a mobile time tracking app for construction time tracking is extremely beneficial as it provides more flexibility and accuracy for employee clock-ins and clock-outs.
• As you implement a new time tracking system, include your employees in the feedback and assessment process.

What is Time Tracking?

Time tracking in construction involves the systematic recording and monitoring of the hours worked by company personnel on various tasks and projects. Recording a crew’s working hours by tracking their clock-ins and clock-outs ensures that employees are compensated accurately for their time.

For better construction jobsite management, time tracking helps to increase worker accountability and estimate labor costs for projects with greater accuracy.

Another big impact time tracking has on construction businesses is by providing accurate data on how labor resources are allocated across a project, how much time is spent on specific tasks and overall workforce productivity.

Why is Time Tracking Important?

Without a time tracking system in place to accurately collect labor hours, construction companies can fall victim to time theft. 

Time theft in construction refers to when employees are paid for hours they don’t fully dedicate to work. Whether it’s arriving late, leaving early, taking unauthorized breaks or engaging in personal activities on company time, time theft can lead to severe cost overruns.

Time theft significantly impacts construction contractors financially and operationally because time theft causes inaccurate time data. This can lead to expensive discrepancies that cost contractors millions annually. While there is no definitive number to associate with that annual cost, the available research indicates:

• Over $400 billion per year is lost to worker time theft across all industries, according to a report in the Boston Globe and Denver Post.
• The American Society of Employers estimated that 20% of every dollar earned by U.S. companies is lost to employee time theft.
• A study by Intuit specifically focused on the construction industry found that 49% of employees admitted to committing time theft. This translates to an average of 4.5 hours stolen per employee per pay period.

Beyond direct monetary losses, construction companies also suffer from:

• Project delays and missed deadlines as lost work hours directly impact construction project schedules, potentially leading to contractual penalties and lost revenue.
• Decreased productivity because an ineffective workforce affects overall output and project profitability.
• Reduced employee morale and engagement due to a lack of trust and fair compensation can negatively impact employee performance.

Fighting time theft requires a time tracking system that maintains accuracy and promotes transparency amongst workers.

Although time theft can result from any method of time tracking, a mobile time tracking app for construction and time tracking software can help reduce time theft in construction companies.

What Is Time Tracking’s Impact?  

Time tracking can serve as a strategic tool that allows construction professionals to make more informed decisions. While it helps improve labor hours accuracy in construction, time tracking also:

• Impacts project management
• Maintains accurate budgeting
• Helps keep compliance with labor regulations

Project Management

By tracking the time spent on different tasks, construction managers have access to accurate data on labor hours.

This data can help construction managers optimize resource allocation as they assign the right number of workers to specific activities, ensuring that labor resources are used efficiently and that projects stay on schedule.

Project scheduling and timeline management are also impacted by accurate time tracking. Project managers can use historical time data from previous projects to create realistic timelines for future projects, helping them plan and coordinate tasks more effectively.

Time tracking can serve as a form of documentation for project activities because it provides a detailed record of when tasks were performed, by whom and how much time was spent. This documentation is extremely valuable for audits, project reviews and future project planning.

Budgeting

Construction companies can use time tracking data to identify areas where costs can be controlled or reduced. Identifying potential risks and possible project delays early in a project helps to mitigate cost overruns.

By monitoring and analyzing time data, project managers can take proactive measures to address issues before they escalate.

Time tracking software for construction also has an impact on project scheduling and budgeting. Most contractors choose to bill clients based on time worked and materials used. Accurate time tracking is required for this type of invoicing as it ensures that clients are billed correctly for the actual hours worked on a project.

Using a mobile time tracking app allows users to generate financial reports based on the time data, which provides a comprehensive overview of labor costs, increasing accuracy in payroll management for construction companies.

These reports allow construction managers to view labor costs against project revenues to assess project profitability and identify areas for improvement.

Compliance With Labor Laws

Time tracking is essential for compliance with labor laws and regulations. It provides accurate time records of hours worked, breaks and overtime, ensuring that the construction site operates within legal guidelines.

Because construction projects often involve overtime work, using time tracking helps monitor and manage overtime hours. It also allows for better planning to minimize the costs associated with excessive overtime.

What Are the Different Time Tracking Methods?

There are a variety of different time tracking methods, but some are more effective than others. Time tracking may involve

• Paper Timesheets

Traditional paper construction timesheets involve manual recording of hours worked, tasks performed and any relevant details. Employees fill out paper forms, and these sheets are submitted for approval and processing.

• Manual Punch Clocks

Manual punch clocks, also known as time clocks, are physical devices where employees insert a paper card or use a key to “punch in” and “punch out.” The time data is then manually transferred for payroll processing.

• Excel Spreadsheets

Some construction companies use Excel or other spreadsheet software for time tracking. Employees enter their hours and details into a spreadsheet, which is then compiled and analyzed by supervisors or administrators.

• Mobile Time Tracking Apps

Mobile time tracking apps allow construction workers to use their smartphones or tablets to log their working hours, breaks and tasks.

• Time Tracking Software

Time tracking software allows employees to log their hours via a web-based platform. This cloud-based method is accessible from any device with an internet connection.

A 2023 survey by Capterra found that 70% of respondents in the construction industry use time tracking software, with mobile apps being the preferred method for 63% of them.

Check out our comparison between construction time tracking apps and paper timesheets, and how time tracking software can help improve your construction business.

To better understand the most popular time tracking options, we’ve broken them down in greater detail.

What is Time Tracking Software?

As the name suggests, time tracking software is a tool used to track employees’ hours. This type of software is typically used by organizations that bill their clients based on the amount of time spent on specific tasks or projects, or companies that monitor employee productivity and resource allocation.

Types of Time Tracking Software

There’s a variety of different time tracking software available, and each has its own function for tracking time. Some timesheet software may require employees to manually track their time using timers or by logging their hours worked.

Other time tracking software will use GPS or location tracking tools to monitor when employees arrive on the jobsite and leave.

It’s worth noting that not all time tracking software tracks employees’ absences. Software that does this is often known as attendance tracking software, which is different from time tracking software. Time tracking software or mobile time tracking apps focus on tracking the labor hours for each employee.

What is Mobile Time Tracking? 

Mobile time tracking refers to the use of mobile devices, such as smartphones or tablets, to record and manage working hours. Using a mobile time tracking app to improve labor accuracy in construction has become increasingly popular.

This technology typically allows construction crews to clock in and out, log breaks and track their time on various tasks or projects using a mobile application.

Using a mobile time tracking app for construction is extremely beneficial. This method of time tracking provides more flexibility, allowing employees to clock in and out from anywhere with their mobile devices, capturing more accurate start and end times.

This is especially valuable for remote workers, field employees or those working in multiple roles on the jobsite.

These apps also help to verify that the employee who is clocking in is the correct employee to avoid time theft. Some additional benefits of using a mobile time tracking app include: 

1. Specific Time Entry

Associating employee time entries with specific tasks, projects or jobs on the site is one of the best benefits of mobile time tracking. This allows contractors to get real-time data on employee hours and project progress, allowing for quick decision-making and the ability to address issues promptly.

2. GPS Location

With the inclusion of geolocation or GPS time tracking features, a mobile time tracking app ensures that employees are at the designated work site when they clock in. This additional layer of verification can help reduce the likelihood of manual errors associated with traditional paper-based methods while enhancing accountability.

3. Offline Capabilities

To accommodate workers in areas with poor or no internet connectivity, which is common on remote sites, most mobile time tracking apps allow users to record their time entries offline. The data entered offline will then sync to the app when an internet connection is restored. This is extremely convenient for construction workers and can lead to increased efficiency, as employees can quickly record their time without the need for additional paperwork or administrative tasks.

4. Biometric Authentication

Some mobile time tracking apps offer biometric authentication options, such as fingerprint access or facial recognition, to enhance security and ensure that time entries are accurate and reliable. These apps may also include features to send notifications and reminders to employees, prompting them to clock in, clock out or take breaks at specified intervals.

These features can help construction businesses comply with labor laws and regulations by accurately recording working hours, breaks and overtime.

5. Integrations

One of the best benefits of a mobile time tracking app is the ability to integrate with other business systems such as payroll, project management and accounting software. This integration streamlines data flow and reduces double entry, mitigating the risk of errors.

How Do You Implement a Time Tracking System?

Implementing a time tracking system will take some time, but it can help to simplify the process of rolling out timecards. Although the process can vary depending on the size of the construction company, we created a general guide to successfully implementing a time tracking system:

1. Identify Key Features

Assess the specific needs and challenges of your construction company. Consider factors such as the number of employees you have, the nature of your projects and your existing time tracking methods.

• Consider the must-have features that are necessary to your time tracking system, such as
  • Mobile compatibility: make sure employees have the capacity to use the app.Offline capabilities: if your jobsite doesn’t have a good wi-fi connection, this would be important to consider.GPS tracking: setting up a GPS location for employees entering and exiting the jobsite. 
  • Integrations with payroll and project management software: analyze if you need the system to integrate seamlessly with your payroll and current project management solution.   
• Be sure to involve employees in the selection process. Seeking their input can ensure employees will be willing to buy in and can help address concerns early on.

2. Test and Refine

Before you officially adopt a time tracking system, test it with a pilot program. Consider implementing the pilot program in a smaller segment of the workforce or on a specific project before rolling out timecards company-wide.

• Testing the system with a small group of employees can help identify any potential challenges and adjust before full rollout.
• Collect feedback from the users to make improvements to the system and the implementation process.

3. Train Your Team

Provide comprehensive training to employees on how to use the chosen time tracking system. Offering support, training sessions and a helpdesk to assist field teams with any issues they may encounter can help ease the implementation process.

• Develop and communicate a clear time tracking policy to all employees. This includes guidelines on clocking in and out, recording breaks and any specific requirements related to the chosen time tracking system.
• Provide comprehensive training resources about the system features, timecard submission procedures and data privacy policies.
• Help employees by offering ongoing support, be available to answer questions and troubleshoot issues as they arise.

4. Plan the Rollout

Once the pilot program is successful, you have made any necessary adjustments from training, you can proceed with the full rollout of timecards across the entire construction company. Be sure to continuously communicate the official launch with employees and provide them with ongoing support.

• Define your goals and objectives before implementing the pilot program. What specific benefits do you aim to achieve (e.g., improved payroll accuracy, better project insights, reduced time theft)?
• It can help to identify key stakeholders prior to implementation. Project managers, supervisors, payroll staff and employees should all be involved in the process.
• To keep everyone in the company informed, develop a communication plan. Explain the benefits of the system, address any concerns and provide clear instructions for all users.
• Once the pilot is successful, set a timeline for implementation, training and adjustment.

5. Monitor and Evaluate:

After official implementation, be sure to continuously monitor the system. Getting feedback from employees can be extremely valuable for addressing issues that may arise. Because the time tracking process is ever-changing, there may be a need to regularly assess the effectiveness of the system and adjust if needed.

• Use the time tracking system to track key metrics. Measure the impact of the system on payroll accuracy, project costs, employee productivity and employee engagement as it is implemented.
  • In your analysis, look specifically for how much you’ve started to save on costs, the thoroughness of your audit trail and the time saved on running payroll.
• Identify areas for improvement, use data insights to refine processes and optimize system usage so you can be sure it is the right fit for you.

Additional Tips

• Incentivized adoption is a beneficial way to get employees on board quickly. You can do this by offering rewards or recognition for employees who consistently use the system correctly.
• Time tracking systems are helpful when they are used properly. Continue to enforce accountability by establishing clear policies and consequences for timecard inaccuracies or misuse.
• The program may not be successful right out of the gate so give the new system some time. Setting an appropriate acclimation period allows field workers to settle into a routine using the system.

How Does WorkMax Help Track Labor Hours Accurately?

Time tracking is an essential part of the construction industry. However, before you start implementing a time tracking system, analyze your current system by asking these questions:

• How accurate are your labor hours?
• Historically, how precise are your cost projections?
• Where are the consistent inaccuracies?

By providing some answers to these questions, you’ll have a place to start.

If you choose to purchase new time tracking software or upgrade to a mobile construction timesheet app, find a digital solution that directly solves the problems you’ve identified with your current system. As you implement a new system, always keep track of your success rate amongst employees.

Overall, whether it’s understanding time tracking, knowing why software and mobile apps are important or implementing a system to roll out timecards, knowing all the different aspects of time tracking is important for any type of construction project.

And with WorkMax, our easy-to-use mobile time-tracking app provides live field data down to the minute. WorkMax is equipped with patented biometric facial recognition and PIN entry, while a GPS tracks their location, verifying that the employee who is clocking in is the correct employee.

Regardless of its size, WorkMax’s construction time tracking software empowers businesses to better track and manage their labor force.

If you’re ready to see how our software can help you, book a demo with our construction time tracking software experts today!