Cloud-Based Time Tracking: Why It’s a Must for Construction

Managing the many nuances of your construction workforce plays a key role in effective growth strategy. Investing in reliable, consistent, and accurate cloud-based time-tracking software can:

• Reduce costly payroll errors.
• Protect your business from fraudulent activity.
• Avoid compliance violations and fines.
• Improve morale and productivity in both your field and back office.
• Speed payroll processing by over 70%.

Construction time tracking software’s competitive edge cements a healthy financial foundation, positioning your business to thrive in today’s (and tomorrow's) evershifting market.

Enhance your operational efficiency with the insight and actionable strategies throughout this article—and learn why hh2 cloud-based construction time tracking software is key to stable scalability and growth. 

 Why Traditional Time Tracking is Costing Construction Companies

The construction industry is experiencing a significant uptick in tech and software adoption. This trend isn’t one that will fade, and delaying your adoption of construction time-keeping software may end up costing you way more than the investment of buying the software.

Payroll errors and overpayments due to manual data entry 

The biggest reason to upgrade from manual to automated construction timekeeping software is to prevent human error. Even the most seasoned and detail-oriented specialists make typos or punch the wrong number. According to a GNSA report, manual entry accounts for 35% of payroll errors. But even without errors, a study by Ernst & Young revealed that it costs a staggering $5 for each manually entered HR task (like payroll entry).

Time theft and buddy punching lead to inflated labor costs

Annually, “buddy punching” costs US businesses hundreds of millions of dollars in payroll expenses. Investing in reliable construction time-tracking software helps construction businesses encourage employee compliance and transparency.

Delayed job costing insights impede financial decision-making

With so many active job sites, manual data entry is so time-intensive and complex that it’s difficult to calculate job costs effectively. That can cause lost revenue because you aren’t bidding accurately—and you aren’t bidding accurately because you lack a clear financial picture of what’s required to complete a project.

Prevailing wage and certified payroll compliance issues

Managing certified payroll and prevailing wages is a nightmare for many construction companies. Submitting accurate WH-347 forms is exhaustive and complex (entering accurate rates, defining W2 employees vs contract employees, ensuring an appropriate journeymen-to-apprentices ratio, etc.). You risk costly compliance violations without intuitive software to collect accurate and up-to-date documentation.

The Benefits of Cloud-Based Time Tracking

When it comes to shifting to AI and payroll automation, the construction industry isn’t the only one on the fence. The 2025 Emerging HR Trends report by edays shared that just 15% of HR departments in 2024 advanced from the evaluation stage to actual implementation. However, integrating cloud-based time-tracking software can spur a remarkable upward spiral throughout your operation.

Improve employee experiences with real-time accessibility

Digitizing the clock-in process lets managers and workers log and approve time from any device. This is more efficient for those traveling to multiple job sites per day, and helps payroll specialists access the data they need without having to chase it down or wait for paper time sheets.

Increase accuracy by automating data entry

Companies with timekeeping and payroll software were 44% less likely to commit errors. Cloud-based construction platforms break down data silos and centralize key data. Combined with AI that automatically categorizes job codes, calculates rates, and tracks compliance laws, time-tracking software practically eliminates payroll errors. 

Ensure time clock transparency with GPS and geofencing

Cloud-based software helps protect your business and hold your team accountable by automatically verifying employee locations via GPS and geofencing capabilities. This means a much lower risk of fraudulent activity, such as buddy punching.

Enjoy Seamless integration with accounting and payroll systems

Effective construction time-tracking and attendance software enhance efficiency by syncing with major applications like: 

• Sage
• Viewpoint
• Procore
• Spectrum
• Foundation
• Autodesk
• Acumatica
• CMiC
• ComputerEase
• And beyond… 

Protect your business with overtime and compliance tracking

Staying ahead of evolving wage, union, and certified payroll policies is challenging and time-intensive. With high-level multi-tasking required in any busy construction business, cloud-based time-tracking software makes it easy to comply with labor laws and contract terms.

Scale at your pace with a flexible platform built to adapt

Cloud-based time-tracking is specifically designed to scale with your operation at any stage—no matter your team size, revenue goals, or growth trajectory. You become more adaptable since you don’t have to worry about outgrowing your tech.

Key Features To Look For In A Cloud-Based Time Tracking Solution

For those now leaning towards cloud-based construction time clocks, the following section helps ensure you choose the right time-tracking solution. Digital time punching and automated payroll are great, but with the many nuances and compliance regulations to consider, construction companies must choose industry-specialized software. Here are the most essential features to look for:

• Offers a mobile-friendly interface: Choose mobile time clock construction software accessible from smartphones, tablets, and desktops. This feature lets your team log time from anywhere, helping to increase accuracy.

• Provides offline functionality: While cloud-based, look for a construction time-tracking solution that ensures data capture even when the internet connection goes down. 

• Automates approval workflows: Cloud-based construction time-tracking software can reduce delays, administrative burden, and speed up payroll processes by 70%.

• Generates custom reporting and analytics: Look for software that provides insights into labor costs, productivity, and job profitability. This will empower better financial forecasting capabilities and help you grow.

• Enhances security and data protection: According to Cybersecurity statistics, a cyber attack occurs (on average) every 39 seconds—and data breaches cost US businesses $9.44M (on average). You can defend your construction business against cybercrime, and ensure compliance, with software developed with industry security standards at its core.

How A 50-Year Veteran Construction Firm Achieved Operational Excellence In Payroll

The results of time-tracking automation aren’t just conceptual, as the following case study testifies. Here’s a real story of how Miller Construction’s Senior Director of Operational Excellence, Whitney Mendes, reduced job and cost-coding errors by 99% with hh2 cloud construction time-tracking software!

How Miller Construction Lowered Payroll Errors By Over 99%

99% error-free payroll process and effortless Sage integration revolutionized the way Whitney and her team alleviated stress and enhanced operation excellence. 

4 Steps To Successful Cloud-Based Construction Time-Tracking Software Integration

Step 1: Assess current processes and pain points

Work with stakeholders (such as your project managers, payroll specialists, and site teams) to identify the most pressing problems, and determine precisely what your team needs to succeed.

Step 2: Choose a solution that integrates with your existing software

Even if you don’t have dedicated time-tracking software, your business likely uses other accounting and project management platforms. Save yourself the headache (and extra cash) by choosing construction time clock software that integrates with your current systems.

Step 3: Provide training and support for smooth adoption

The best way to succeed in integration (and avoid lost productivity) is by training your team on how to use the software. Provide training sessions, access to support, and knowledgebases to help everyone feel confident and ready to engage with the tool.

Step 4: Monitor and optimize usage to maximize ROI

Install and synchronization isn’t the last step, it’s the beginning. Schedule routine check-ins with your team to ensure the tool is doing its job. This also allows you to catch minor issues before they become big bottlenecks.

Take Your 1st Step Toward Empowered and Optimal Payroll

You can empower your payroll department with up-to-date data while making time-tracking much easier for your field team. With a portable cloud-based solution interconnecting your field and back office ecosystem, your operations are more secure, productive, and clever.

Ready to position your construction business for growth in 2025 and beyond?

Upgrade to hh2 Remote Payroll today and eliminate payroll errors with cloud-based time tracking!