How Digital Timesheets Improve Labour Cost Management in Construction

The construction industry faces its own unique challenges when it comes to managing labour costs, tracking project progress, and ensuring that deadlines are met. Traditional methods, such as paper-based timesheets, often fall short in providing the accuracy and real-time insights needed to make informed decisions. 

In a recent interview, our Sales Marketing Director, Joe Holloway, shared his expertise on how digital timesheets can transform project management for the construction industry.

The Importance of Timesheets for Precisely Tracking Labour Costs

Accurate labour cost tracking is critical for construction companies, as it directly impacts project profitability and client satisfaction. Timesheets are instrumental in this process and provide the most effective solution to monitor and analyse how much time is being logged by workers. 

This data allows construction companies to conduct precise analyses of labour costs, ensuring that billing to clients is accurate and reflective of the work completed. By understanding the exact amount of time spent on various tasks, companies can also better manage their margins, identify areas where costs can be reduced, and plan for future projects with greater accuracy.

Addressing Inefficiencies Through Detailed Tracking

One of the significant advantages of using timesheets in construction projects is their ability to highlight inefficiencies. By providing a clear and detailed picture of who has worked on what and for how long, timesheets enable project managers to track the lifecycle of a project closely. This level of detail is crucial for identifying areas where too much or too little time has been spent.

For example, if a particular task is consistently taking longer than expected, it may indicate a need for additional resources or a reassessment of the project plan. Alternatively, if tasks are completed more quickly than anticipated, it could signify an opportunity to optimise labour allocation or adjust project timelines. Timesheets can serve as an essential tool for ensuring that projects are completed efficiently, within budget, and on schedule.

The Advantages of Digital Systems as an Alternative to Paper-based Tracking

The transition from paper-based timesheets to digital systems marks a significant shift in how construction companies manage their operations. Digital timesheets offer numerous benefits over traditional methods, beginning with their accessibility. With digital timesheet software, the workforce can easily record their time and expenses from anywhere, using any device from a desktop computer in the office or a mobile phone on-site.

This ease of use encourages timely and accurate submissions, which is crucial for maintaining up-to-date records. Digital timesheets also streamline the approval process, reducing the administrative burden on managers and ensuring that data is quickly processed. 

The reduction in the potential for human error, whether at the point of recording or during data transfer, is another critical advantage of digital systems. This leads to more reliable data, which is essential for effective project management and accurate billing.

Leveraging Real-time Data from Timesheets to Improve Decision-making

In the construction industry, where conditions can change rapidly, having access to real-time data is a game-changer. Timesheets that provide up-to-date information allow project managers to make informed decisions with confidence. With access to data in real-time, managers can quickly assess the current status of a project, identify any issues that may be arising, and take proactive steps to address them.

For instance, if a project's labour costs are exceeding the budget, a project manager can immediately adjust resource allocation or seek approval for additional funds. Similarly, real-time data enables managers to identify when additional resources are needed to keep a project on track.

The impact of Mobile and Ddesktop Accessibility of Timesheets for a Distributed Construction Workforce

In today's construction industry, it's common for workforces to be spread across multiple locations, often with team members working remotely or on different sites. The ability to access and record timesheets via both desktop and mobile devices is essential. This flexibility removes much of the resistance that workers might otherwise have towards completing timesheets, as they can do so from anywhere, at any time.

Digital timesheet systems also offer features like automated reminders, which can prompt workers to submit their timesheets before internal deadlines. This helps to ensure that all time is recorded accurately and on time, which is vital for maintaining up-to-date project records. 

The shift to digital means there's no longer a need for physical or central mechanisms for clocking in, making the process more convenient and less prone to delays or errors.

How Timesheet Portal helps to Address the Challenges in Tracking Project Costs and Labour Faced by Construction Companies

Construction companies often face several challenges when it comes to tracking project costs and labour. These include ensuring that time and expenses are recorded in the first place, that submissions are accurate and timely, and that the data is accessible to those who need it. 

Timesheet Portal addresses these challenges through its highly configurable setup, which gives administrators total control over what is presented to the workforce for recording time. The custom approach of Timesheet Portal allows companies to implement the exact workflow they require while keeping the entry of time and expenses as simple as possible for the end user. This simplicity is crucial for engagement, as a system that is difficult to use is unlikely to be adopted widely by the workforce. 

Timesheet Portal offers robust analytics, enabling companies to extract and interpret the data they need, whether through the portal itself or via integrations with third-party systems.

Accurate Time Recording and Expense Management

Maintaining accurate time and expense recording is a top priority for construction companies, and Timesheet Portal excels in this area. By making the submission process straightforward and user-friendly, Timesheet Portal encourages widespread adoption among the workforce. 

The platform's features, including automated reminders, a robust approval process, and custom rule sets, further improves the accuracy and reliability of the data collected.

These features are combined with the visibility of real-time data, allowing those in the business who need it to take immediate action where necessary. This means that any discrepancies or issues are addressed promptly, reducing the risk of errors in billing or project management.

Managing Non-productive Time Effectively

In addition to tracking productive time, Timesheet Portal also assists construction companies in managing non-productive time through its purpose-built leave module and absence tracking features. Each worker has immediate access to their current leave balance, the ability to request leave, and visibility of what others in the team have already booked off, preventing unwanted overlaps.

For administrators, Timesheet Portal offers a streamlined approval process, in-depth reporting, and custom rule sets to navigate the complexities of public holidays, varying working hours, and mandatory leave bookings. This comprehensive approach ensures that all aspects of time management are covered, reducing the administrative burden on managers and improving overall efficiency.

Managing Labour Costs and Budgets

Managing labour costs and budgets is a critical aspect of construction project management, and Timesheet Portal provides several purpose-built features to assist in this area. For example, it allows companies to record the value of purchase orders against specific projects and deliverables, track the burn rate, and monitor the remaining budget.

Timesheet Portal also includes custom overtime calculations, which automatically account for variations in pay or charge rates based on factors such as time of day, number of hours worked, location, and work type. This automation eliminates the need for manual calculations, saving time and reducing the potential for errors. All this data is easily visualised through custom reports, and it can be exported to business intelligence platforms via API integrations.

Ensuring Timely and Accurate Client Billing

Client billing is another area where Timesheet Portal excels. The platform's client invoicing module allows for the streamlined creation of invoices directly from approved timesheets and expenses in just seconds. Whether the requirement is for invoices to be grouped by client, site, project, or purchase order, Timesheet Portal makes the process quick and efficient.

Invoices can be sent directly to clients in bulk, with all supporting documentation attached, and the platform's integration with accounting systems eliminates the need for manual data transfers. This level of efficiency can reduce the time spent on client billing from hours or days each week to mere minutes, freeing up valuable time for other critical tasks.

Summary

The benefits of transitioning from traditional paper-based systems to digital platforms are clear: improved accuracy in tracking labour costs, enhanced efficiency in project management, and the ability to make informed decisions based on real-time data.

By embracing digital timesheets, construction companies can not only streamline their operations but also gain a competitive edge in an increasingly demanding market. These tools help managers to take control of their projects, optimise resource allocation, and ultimately deliver better outcomes for clients.