Close Menu
NERDBOT
    Facebook X (Twitter) Instagram YouTube
    Subscribe
    NERDBOT
    • News
      • Reviews
    • Movies & TV
    • Comics
    • Gaming
    • Collectibles
    • Science & Tech
    • Culture
    • Nerd Voices
    • About Us
      • Join the Team at Nerdbot
    NERDBOT
    Home»Nerd Voices»NV Business»The Importance of Accurate Timekeeping and Tracking Labor Costs on Construction Sites
    Unsplash
    NV Business

    The Importance of Accurate Timekeeping and Tracking Labor Costs on Construction Sites

    Nerd VoicesBy Nerd VoicesMay 24, 20235 Mins Read
    Share
    Facebook Twitter Pinterest Reddit WhatsApp Email

    With 61% of the construction projects behind schedule, it’s no surprise that many projects experience budget overruns. The more a project is delayed, the more it will cost. So, what can you do to avoid this? 

    One of the most basic things is to keep track of project time and labor costs. Tracking material and labor cost helps ensure the project stays within budget. Meanwhile, timekeeping is essential to prevent delays and loss of contractor reputation. 

    In this article, we go deeper into the importance of these two elements.

    What is time tracking?

    Time tracking is the process of monitoring the number of hours spent on a specific construction task or the whole project. Construction managers use cost codes or CSI codes to create funds for every task or trade, depending on how much time it takes.

    Why is time tracking important?

    Construction time tracking is important for many reasons. Here are some of them.

    Project management

    Construction managers use the time taken on every construction task to determine a project’s progress. Time tracking helps them ensure a project stays on schedule.

    They can also use time tracking to identify delays before they become an issue. For example, if a certain task is taking too much time, it’s evident that the subsequent tasks will also be delayed.

    Likewise, if that task takes longer than anticipated in every project, the project managers can allocate more time to it in future projects to create an accurate timeline.

    Resource allocation

    Construction time tracking also helps allocate resources to different aspects, such as materials, equipment, and labor. If you know how much time a task takes, you can assign it the right amount of resources.

    It helps prevent shortages and overallocation. For example, if a project manager knows building a roof will take two weeks, they can make sure the necessary materials and labor are available.

    Contract compliance

    Construction projects have deadlines and contractual obligations. Time tracking helps construction project managers comply with these obligations. They can predetermine if a project will meet the deadline and take necessary measures to tackle deviations and delays.

    Performance evaluation

    Time tracking also gives insight into project productivity and contractor performance. By tracking how much time your workforce took to complete a project or task, you can determine how productive they were.

    You can use this data to identify areas for improvement. It can also help you determine which workers you should rehire for subsequent projects and which contractors you should work with in the future.

    What are labor costs?

    Labor costs include all the money you spend on labor for a construction project. It includes:

    • Wages and salaries
    • Overtime pay
    • Benefits and Insurance
    • Payroll taxes
    • Training and certification costs
    • Subcontractor fees
    • Per-diem expenses, such as travel, lodging, and food
    • Union dues
    • Incentives and bonuses

    Why is it important to track labor costs?

    Tracking labor costs is not only important for budgeting and cost control. It also has other benefits. Here are some of them.

    Budgeting

    By tracking labor costs, construction project managers can estimate a project’s cost. The labor costs account for 40% to 50% of total construction cost. So, having a good measure of the labor cost can help you determine the total project cost.

    Productivity analysis

    Construction project managers can use labor costs to determine their labor productivity. It can help them measure labor performance against certain benchmarks and industry standards.

    For instance, if a project has higher labor costs than the industry average, there are likely workflow inefficiencies in it. Or, the workforce may not be adequately trained to perform the task in the average time it takes.

    Project bid estimation

    Project contractors use labor costs to bid on a construction project. If the contractor knows how much labor will cost, they can use that information to make an accurate bid.

    It keeps them from bidding over the market price and losing potential projects, and bidding below the actual project cost to lose money.

    Unpredictability minimization

    Construction projects are prone to unforeseen circumstances, such as risks, price hikes, and delays. Labor cost tracking can give project managers real-time insight into their workforce’s status and performance.

    For example, if the project labor is higher than anticipated in the first few project tasks, the trend will likely continue in the future too. Construction project managers can use this information to allocate resources properly and minimize any risk of cost overruns.

    How to track time and labor costs on construction sites?

    Time and labor cost calculation on a construction site may be manual or software-based. Manual tracking can be done using the following:

    Time clock systems

    You can implement a time clock system that laborers use to clock in and out of work. Provide unique swipe cards or identification codes to your workers so that you can track them.

    It will help you track hours by calculating how much time construction workers spend on the site. Then, you can multiply the number of hours by the hourly wage of each construction worker type to determine labor costs.

    Daily log sheets

    Another method is to provide daily log sheets to your workers. The log sheet should have slots for information, such as:

    • Labor classification
    • Hours worked
    • Hourly wage
    • Equipment used
    • Additional costs (such as per-diem) incurred

    Use the log sheet data to calculate the time worked and costs incurred by your labor daily.

    Software

    Since manual calculations and tracking systems are prone to error, software and mobile apps are becoming popular. Employee time tracking tools have built-in features to store, analyze, and utilize real-time construction data.

    You can also integrate these apps with your project management tools for real-time labor cost analysis.

    Conclusion

    Tracking construction project time and labor costs is important for proper resource allocation, performance analysis, and cost control. You can do this in many ways, from manual procedures to advanced mobile applications and software. Regardless of the method, ensure your labor knows how to use the time and cost tracking systems.

    Do You Want to Know More?

    Share. Facebook Twitter Pinterest LinkedIn WhatsApp Reddit Email
    Previous ArticleGet Started with Online Casino Betting: A Comprehensive Guide
    Next Article Boosts Confidence With Beautyforever Glueless Wig In Minutes
    Nerd Voices

    Here at Nerdbot we are always looking for fresh takes on anything people love with a focus on television, comics, movies, animation, video games and more. If you feel passionate about something or love to be the person to get the word of nerd out to the public, we want to hear from you!

    Related Posts

    All Marvel Rivals Legendary Skins

    May 11, 2025

    How RPA (Robotic Process Automation) is Reshaping Business Models

    May 11, 2025

    Buy Legal FC 26 and PlayStation Accounts Securely with Dicardo

    May 10, 2025

    Rainbow Six Siege A Cool Game of Strategy and Action

    May 10, 2025

    Ring Lock vs. Cup Lock Scaffolding: Which is Right for Your Project?

    May 10, 2025

    Indicators That a Gadget Repair Shop Offers Fast and Reliable Service

    May 10, 2025
    • Latest
    • News
    • Movies
    • TV
    • Reviews

    All Marvel Rivals Legendary Skins

    May 11, 2025

    How RPA (Robotic Process Automation) is Reshaping Business Models

    May 11, 2025

    Buy Legal FC 26 and PlayStation Accounts Securely with Dicardo

    May 10, 2025

    Rainbow Six Siege A Cool Game of Strategy and Action

    May 10, 2025

    How to Use Tetris for PTSD Recovery: A Science-Backed Guide

    May 7, 2025

    Funko Announces Price Increases Due to…Reasons

    May 6, 2025
    A Million Lives Book Festival

    Authors Lose Thousands at Failed ‘A Million Lives Book Festival’

    May 6, 2025

    Boost Your Confidence Between the Sheets Today

    May 6, 2025

    Cameras to Roll on “Highlander” Reboot this September

    May 9, 2025

    Cameras are Rolling on “Godzilla X Kong: Supernova”

    May 9, 2025
    "Evil Dead Rise"

    “Evil Dead” Sequel Lands Release Date

    May 8, 2025

    “Thunderbolts*” Director Jake Schreier Being Eyed for X-Men Film

    May 8, 2025
    "Ted," 2024

    Seth MacFarlane’s “Ted” Gets Animated Series, Teaser

    May 9, 2025

    Spend 10 Hours With Daredevil Staring at You

    May 8, 2025

    Prime Video’s “Fallout” Wraps Filming on Season 2

    May 8, 2025
    "Squid Game" season 3

    Netflix’s “Squid Game” Gets 1st Trailer For Season 3

    May 6, 2025

    “Friendship” The Funniest Movie I Couldn’t Wait to End [review]

    May 3, 2025

    “Thunderbolts*” Surprisingly Emotional Therapy Session for Anti-Heroes

    May 3, 2025

    “Sinners” is Sexy, Boozy, Bloody, Bluesy, and Amazing [Review]

    April 18, 2025

    “The Legend of Ochi” Cute Puppets, But No Magic [Review]

    April 16, 2025
    Check Out Our Latest
      • Product Reviews
      • Reviews
      • SDCC 2021
      • SDCC 2022
    Related Posts

    None found

    NERDBOT
    Facebook X (Twitter) Instagram YouTube
    Nerdbot is owned and operated by Nerds! If you have an idea for a story or a cool project send us a holler on [email protected]

    Type above and press Enter to search. Press Esc to cancel.