Two of the most important parts of construction project management are linked: time tracking and job costing. To successfully manage a project and plan for the future, companies need to have accurate data about when work happens, how long it takes, and how much it costs.
An essential part of job costing is time tracking. Construction companies can't have the full picture of how much a project will cost without an accurate view of how long projects take and the work costs of paying employees. Time tracking helps break down the project into different areas, giving companies an accurate view of the cost of every step and detail. Accurate time tracking is essential for not just calculating the cost of a current project but also estimating the costs of future projects.
What’s your best tool for project cost management? High-quality time-tracking software. Here is more on how time-tracking software impacts job costing.
Time tracking has a ripple effect throughout construction projects. When done well, it sets the stage for a clear view of project progress. However, when time tracking is inefficient or inaccurate, it can cause ripples of uncertainty or inaccuracy throughout the entire project and impact the success of future projects.
Inefficient time tracking can lead to budget overruns and cause companies to lose money on projects or dip into their expected profitability. When supervisors and accounting teams don’t have a clear view of what tasks are being done, who is doing them, and how long they take, they can’t correctly calculate job costs (and, therefore, total project costs).
Even small inefficiencies and inaccuracies can lead to significant budget issues. If a construction company collects and calculates employee time manually, there may be a lag between when the work is performed and when the payment is sent. An employee could work 30 hours on a project and need to get paid, but their timecard isn’t submitted until a week later, leading to a lag in accounting. That lag can cause a ripple of confusion throughout the budgeting process and make it difficult to calculate what work is for which project and how much it costs.
Similarly, if an employee miscalculates their time by 30 minutes a day, it can lead to significant backpay or miscalculations over the course of a project. Those inaccurate calculations could throw the budget off balance for current and future projects. Even time that is entered correctly but coded incorrectly can lead to miscalculations in the cost breakdown, leading to companies allocating more budget to one area of a project than another.
Additionally, inefficient time tracking can cause a lack of visibility into project progress. Construction projects have lots of moving parts, but a lag in when work is performed and when time information is submitted can mean that the office has an outdated understanding of a project’s status. That misinformation can make it difficult to respond to challenges that arise, answer client questions, and stay on schedule.
How can construction companies overcome the many challenges that come from poor time tracking? By investing in time-tracking software to streamline and automate the time-tracking process. Time-tracking software connects office staff with field employees for accurate calculations and progress reports.
For one, time-tracking software can link hours to specific cost codes, which provides a deeper and more nuanced view of the total cost of a project. Instead of only having lump sum estimates for a project in a few basic categories, specific cost codes help companies break down labor costs with more detail so they can know exactly how much time and how much money was spent on each aspect of a project.
Time-tracking software also provides real-time data for better decision-making. Instead of having to wait for manual updates and time cards, the software is a real-time connection between the office and the job site. If a project is approaching its budget, supervisors can see it in real time and make strategic decisions to keep the project on schedule and under budget.
With real-time updates, project managers can identify potential issues quickly and make adjustments instead of having to change things after the fact or re-do work, which can slow down a project and significantly increase the cost. If there is a labor shortage, delay or issue with materials, or equipment malfunction, supervisors can be alerted right away and make adjustments as needed to keep the project on track. This data drives efficiency and productivity, which can expand a company’s workload and lead to higher-quality results.
There's no better tool to update your workflows and job costing than hh2 time tracking software. Our industry-leading software integrates with job costing, accounting, and ERP systems for smooth accounting and financial workflows. Tracking time and labor costs while projects are active prevents overrun and helps you stay within budget. Integrating time tracking with job costing software allows for easy adjustments as time tracking costs change.
With hh2, you’ll have improved financial visibility and real-time insights into your budget, account balances, and employee costs. Our time-tracking software makes it easy for on-site employees to clock in and out remotely through a tablet or smartphone, so supervisors have an accurate, real-time view of who is on which job site at any given time. Our software lets you quickly view time and labor data as projects progress to understand what project line items your crews are working on and what trades are active in each location. Those real-time insights help companies assess labor usage and better manage their sites for optimal efficiency. With hh2, you can streamline operations, creating a more efficient construction company with time-tracking data and job costing you can trust is accurate.
Job costing is a crucial aspect of construction project cost management, and time tracking plays a huge part in that. Don’t leave your budget or time tracking up to chance and risk budget overrun and project delays. hh2 time tracking software can streamline workflows, allow for real-time updates and adjustments, and keep your company’s budget on track.
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