Improve Job Costing with Construction Time Tracking Software

Time is literally money in the construction industry. The more time a construction company spends on a project, the less availability it has to work on other projects, and the more it pays employees. 

To make the most of their money and create accurate budgets, general contractors need to accurately track their employees’ time and calculate job costs effectively. But the process can be tedious and confusing, often cutting into profits.

Accurate construction job costing is essential for general contractors. Labor costs are one of the biggest expenses for general contractors, and mismanaging labor costs and estimates can significantly cut into profits. Every cost, such as labor, materials, or permits, cuts into a project’s profitability. When general contractors have higher labor costs than needed because they don’t have a strong view of their labor, they could miss out on significant revenue. 

Inaccurate time tracking can lead to overbilling, payroll errors, and budgeting failures. Even a small error, like an employee clocking in for an extra hour each week, can significantly cost the contractor extra payroll expenses and an inaccurate overall cost for the job and future budgets. Multiply that across multiple job sites, and it can be a disaster for general contractors wanting to stay on top of their finances. 

What’s the best way to improve job costing and maximize your money? Through real-time labor tracking with strong construction time tracking software. Essentially, it comes down to streamlined labor tracking and job costing. Software makes the process simple. 

In this article, we’ll explore how general contractors can leverage time tracking software to improve job costing accuracy.  

Common Challenges in Job Costing & Timekeeping

Job costing and timekeeping are crucial elements to a construction company’s financial success, but they also bring complexity and challenges, including the following:

• Manual time entry errors and paper-based tracking lead to cost miscalculations. Every time a job cost or time entry is moved manually, it increases the chances of being entered incorrectly. Those small errors can have a ripple effect and lead to widespread inaccuracies. 
  
  
• Time theft and buddy punching inflate labor costs. Employees might not think much of punching in for a coworker or staying clocked in when they aren’t working, but those numbers are costly for a construction company. Time theft causes companies to pay more for work that isn’t getting done and can also affect future job costing projections based on inaccurate information.
  
  
• A lack of integration between time tracking and job costing systems causes delays. Accurate job costing requires data from time tracking tools. But when those systems are separate, job costing teams are left to make their best guesses or wait for results, leading to potentially inaccurate or late job costing estimates. 
  
  
• Poor labor data visibility leads to job site inefficiencies. Construction sites are dynamic, and teams and workloads must often be adjusted to match the climate, budget, or available supplies. However, when general contractors can’t accurately see who is working where on the job site, they can’t adjust or re-allocate employees. This can lead to more people than needed doing the job or not enough people to stay on schedule, which can affect the schedule and budget.

How Construction Time Tracking Software Solves These Issues

Timekeeping and job costing inefficiencies can have a ripple effect for general contractors. But the good news is that there’s a way to overcome these challenges with time tracking software or construction time and attendance software. These platforms, like hh2, eliminate paper timecards and manual entry to automate time collection.

Real-time job costing tracking ensures labor hours are coded to the correct job. Plus, mobile time tracking with GPS and geofencing makes it easy for field crews to report time accurately. This comes with seamless payroll and ERP integration to boost efficiency and reduce delays and unnecessary spending. 

However, not every time tracking software is created equally. When selecting a software solution, look for these five crucial features to ensure accuracy and ease:

• Cloud-based accessibility. Platforms can connect to the cloud for real-time labor tracking and instant adjustments as needed. hh2’s cloud-based solution ensures accessibility from any job site, no matter how remote. 
  
  
• Integration. Strong time tracking software easily integrates with ERPs like Sage, Trimble, and Viewpoint for a seamless view across all data. hh2 integrates with dozens of leading construction platforms to ensure data connectivity. 
  
  
• Automated tracking. Construction labor tracking software should include automated overtime and compliance tracking. These tools reduce the need for manual adjustment and calculations and ensure every employee is paid correctly. 
  
  
• GPS and geofencing. Mobile time tracking with a GPS connection ensures workers are in the correct location, which prevents time fraud. hh2’s mobile-friendly time tracking ensures accurate labor cost allocation, making payroll automation simple from any location.
  
  
• Detailed reporting. The best time tracking software, like hh2, includes detailed labor cost reporting and analytics. It’s one thing to track the data — it’s another to understand it. These systems make it easy to understand and apply data. Real-time job costing insights from hh2 improve project profitability. 

Use Time Tracking Software to Improve Job Costing

Ready to make an immediate impact on your business? Start by improving job costs with construction job costing software. Here’s how to do it in five steps:

1. Identify inefficiencies. Look for roadblocks in your time tracking construction process. Are employees filling out paper construction time sheets? Do managers have to manually approve each time card? Inefficiencies are any step that invites errors or slows down the process.
   
   
2. Choose a construction time tracking app. Look for a solution that integrates with job costing software that meets the needs of your field employees and office staff, such as mobile connectivity and customized automation paths. hh2 is a perfect option for this.
   
   
3. Train field employees. Employees at job sites are responsible for tracking their time to create accurate job costs. Train these employees on proper timekeeping practices, including how to use the app and avoid time theft.
   
   
4. Automate labor tracking. Remove manual steps from the time tracking process. Sync labor data with job cost reports.
   
   
5. Use reporting software. This tool can analyze labor trends and optimize costs, ensuring your company has accurate time tracking and fast job costing reports. 

Job costing for general contractors can be challenging, but it doesn’t have to be. With help from hh2’s time tracking software, you can streamline processes and boost accuracy. 

Try hh2’s time tracking software today!