4 Benefits of Time Tracking Software for Construction

4 Benefits of Time Tracking Software for Construction

The benefits of time tracking software for construction are endless, from better task management to better scheduling. However, an internal survey showed that labor is the greatest risk to profit. Part of the reason is that most of the companies surveyed use paper time sheets and phone calls to determine hours worked. Not only is this a time-consuming process, but it leaves companies open to a lot of unnecessary risk. Time tracking software, especially construction time tracking software, can be an incredible benefit to the industry as a whole. Here are some of the benefits of time tracking software for construction.

Time Tracking Software for Construction – Payroll

Probably the biggest benefit to time tracking software for construction is how it changes payroll. Companies that are still using paper time sheets have to input the data manually. Whether they’re inputting the data into a spreadsheet then loading it into their accounting package or typing it into their accounting package, it’s a lot of manual work. Plus everything is written down, so if an employee can’t read someone’s handwriting, they have to track down the worker to verify their time. In all paper time sheets cost businesses a lot of time and causes a lot of risk.

The benefit to a time tracking software is that it can eliminate that risky behavior. Since employees punch in or record their time on a device, the back office doesn’t have to check handwriting. Any worthwhile system will ask employees for a virtual signature verifying that their time is accurate. So now the back office has an authenticated time card that they can upload into their accounting package, which reduces overall stress.

And people are notoriously terrible at filling out time sheets when there are multiple cost codes. When employees fill out time sheets at the end of the week rather than at the end of the day, they’re often inaccurate. When it comes to remembering which cost codes they worked on, or should bill, it’s worse. Often employees will forget or determine it’s too much hassle to account for a cost code they worked less than an hour on. This comes out of everyone’s pay when it happens because construction businesses and employees won’t be paid for the work they truly did.

Reduce Time Theft

Workers round up hours or minutes worked on a job site often. The benefit of a time tracking software for construction is that it can reduce the payouts due to time theft. According to the American Payroll Association, time theft exceeds 10 minutes a day per employee. Those extra minutes add up for every day and employee. A company could have to pay thousands of dollars for work time that didn’t happen. But that’s why time tracking software is as important for a company as an accounting solution.

When using a time tracking software for construction, a company can be assured an accurate reading. So the foreman knows when a worker clocked in when they clocked out, and even when breaks were. Time tracking software and time tracking apps allow workers to quickly and easily punch in and act as a security mechanism. They ensure that companies only pay people for the time they were actually at the job site.

Managing Overtime

Another benefit to time tracking software for construction is the ability to manage overtime easily. Many projects require overtime to complete the project to the schedule, but not every project. Overtime costs can rise quickly and become a large portion of the project budget if not managed correctly. Project managers can manage overtime easier when using a time tracking software. They can set alerts for office employees dependent upon overtime on projects and even for other employees. That way they can set reminders for overtime and ensure that the hours aren’t rising above threshold limits. The data that office employees can see also can help make decisions. If there is a lot of overtime on a project, they can determine if they need more staff on a project and other potential changes.

Better Estimating and Billing

An overlooked benefit to time tracking software for construction is how it helps with billing and estimating. With jobs that have multiple cost codes, people often forget to switch cost codes. When they forget to change cost codes, they sometimes don’t add that back into their time sheet. This means that billable hours and cost reporting will be inaccurate. This information is crucial in improving estimates and ensuring that everyone is happy in the end. Customers will be displeased if they’re billed for a job code that no one was working on, while employees will be annoyed if they’re not paid properly for their work.

And by improving job cost understandings, it’s easier to estimate for future projects. When estimators work on similar projects, they can use the historical data to better estimate for the new project. If they know, it takes two weeks for a specific cost code and job then they can account for this. It makes time tracking software invaluable for every project.


There are many benefits to time tracking software for construction companies. It can improve and streamline many workflows. Companies that continue to use paper time cards are potentially losing out on thousands of dollars every year. Especially when it comes to time, companies save so much more time by switching to a time tracking software than they do by continuing to use paper.