Labor represents approximately over 30% of a contractor’s total costs, making it the single most expensive asset in any construction business. Yet despite this reality, many construction companies still rely on manual timesheets, paper records, and estimation—methods that lead to payroll errors, compliance violations, and significant revenue leakage.
The numbers tell a compelling story: U.S. teams lose an estimated 50 million hours daily to untracked tasks, translating to approximately $1.7 million lost annually per 100 employees. Meanwhile, roughly 37% of payroll errors stem directly from manual data entry.
For construction field teams working across multiple job sites, often in areas with limited connectivity, accurate time tracking presents unique challenges that generic workforce management tools simply can’t address.
Without solid time tracking systems in place, construction companies face several costly problems:
The construction industry is heavily regulated, and generic time tracking applications aren’t purpose-built to handle mandated breaks, overtime calculations, or the compliance requirements specific to construction work.
When evaluating time tracking solutions for construction field teams, several features prove essential:
Construction crews need apps that function seamlessly on-site. The ability to clock in and out from a smartphone—with options for offline functionality—is non-negotiable for teams working in areas with limited cell coverage.
Location verification ensures workers are physically on-site when clocking in, reducing time theft and providing accurate job costing data. Geofence-enabled tracking restricts clock-ins to designated areas, eliminating a common source of payroll inaccuracies.
Many job sites lack reliable connectivity. Leading solutions automatically log location, time, and mileage to local storage, then sync when the connection returns.
Facial recognition and photo ID capture during clock-ins effectively prevent buddy punching—a persistent problem on construction sites with large crews.
Seamless synchronization with payroll software eliminates manual entry, reduces errors, and can cut payroll processing time by up to 70%.
Construction companies implementing modern time tracking solutions report significant, measurable returns:
One concrete example: Redden Concrete implemented construction time tracking software and saved $703,000 in labor costs during their first year.
The most sophisticated tracking system becomes worthless if workers find ways around it. Don’t lead with management benefits like “better reporting” or “improved oversight.” Instead, emphasize how digital tracking helps workers: faster, accurate payroll with no disputes about hours worked or waiting for manual timesheet processing. Digital records protect workers as much as management.
Create a rollout plan by phase, trade, or region. Schedule onboarding sessions for field users, supervisors, and admin staff separately—each group has different needs and concerns.
Inconsistent time tracking policies across job sites create confusion and gaps in data. Establish clear standards that apply to all projects.
Sync your time tracking with payroll, accounting, and project management systems to eliminate redundant manual entry. Automate timesheet approval workflows wherever possible.
Track adoption rates and gather user feedback. Review reports regularly to analyze labor efficiency, identify trends, and use data to improve scheduling and sharpen bids on future projects.
Several platforms have emerged as leaders for construction-specific time tracking:
Pricing varies per user per month, with enterprise solutions offering custom pricing based on workforce size and feature requirements.
Construction time tracking has evolved far beyond simple clock-in/clock-out functionality. Modern solutions deliver real-time visibility into workforce utilization, automate compliance monitoring, and provide the data needed to optimize crew scheduling and improve project profitability.
For field teams, the right solution balances robust functionality with practical considerations, offline capability, mobile accessibility, and ease of use that encourages adoption rather than resistance.
The construction industry continues to face significant labor challenges, with an estimated 88% difficulty rate in filling hourly craft positions. In this environment, maximizing the productivity and accurate compensation of your existing workforce isn’t just about efficiency, it’s a competitive necessity.
Labor as a Percentage of Construction Costs (30%+)
Source: Construction labor cost benchmarks
Productivity Loss From Untracked / Inefficient Work
Source: McKinsey on time lost to non-productive activities
Payroll Errors Caused by Manual Data Entry (30–40% range)
Source: American Payroll Association research on payroll error rates
Revenue Leakage From Manual Time Tracking
Source: PwC workforce administration inefficiencies
Payroll Processing Time Reduction With Automation (Up to 70%)
Source: Deloitte payroll automation benchmarks
Time Theft and Buddy Punching Impact
Source: American Payroll Association estimate on time theft
Labor Shortage: 88% Difficulty Filling Craft Positions
Source: AGC Workforce Survey
Rework and Bad Data in Construction
Source: Autodesk + FMI research
Construction Software ROI and Admin Time Savings