How to Control Labor Costs in Construction: A Guide to Smarter Timekeeping & Production Tracking

Labor costs are one of the most significant—and unpredictable—expenses on a construction project. For trade contractors working with tight margins and firm deadlines, even small inefficiencies in tracking labor can lead to major overruns. Unfortunately, outdated tools like paper timecards or manual spreadsheets still dominate the jobsite, slowing down reporting and creating blind spots in cost control.

In this guide, we’ll explore how smarter timekeeping and real-time production tracking can help contractors gain control over labor costs, boost job costing accuracy, and protect profits.

Why Labor Costs Are Getting Harder to Control

Construction labor overruns rarely stem from a single issue. They’re usually the result of a combination of small problems that compound over time:

• Inaccurate or delayed time entries
• Misclassified cost codes
• Untracked out-of-scope work
• Communication breakdowns between field and office
• No real-time insight into labor productivity

These problems don’t just drive up direct labor costs—they also erode trust with clients, delay payments, and make it harder to deliver work on time.

Hidden risk: Many contractors still rely on estimated or delayed labor data, which leads to payroll errors and unreliable job costing. Without real-time visibility, you’re flying blind.

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The Role of Digital Timekeeping in Reducing Waste

Modern timekeeping software like Rhumbix replaces error-prone paper processes with mobile-first tools that capture accurate, real-time labor data directly from the field.

Key benefits include:

• Faster, more accurate time capture
  Digital signatures and geofencing reduce disputes and missed punches.
• Daily visibility
  Know exactly who worked, where, and on what task—without waiting for paperwork.
• Payroll integration
  Hours can sync directly to accounting systems, avoiding delays in pay cycles.
• Out-of-scope tracking
  Tag T&M work and change orders in real time to ensure accurate billing and faster payment.

For field teams, digital timekeeping removes friction from their day. For back-office teams, it provides a steady stream of trustworthy labor data that drives smarter decisions.

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Turning Data Into Action: Better Job Costing

Real-time data doesn’t just speed up reporting—it also improves precision in job costing.

With labor hours accurately tracked and coded, contractors can:

• Allocate labor to the correct cost code or phase of work
• Compare actual hours to estimated hours
• Spot unproductive crews or bottlenecks early
• Deliver accurate progress reports to owners and GCs

If production tracking shows a crew’s productivity dropped over the past few days, project managers can step in immediately to diagnose the cause—before that decline eats into the schedule or budget.

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Key Metrics That Help You Stay on Track

What you measure, you can manage. These are the essential labor performance metrics top contractors track:

• Earned hours vs. actual hours
• Percent of hours coded to out-of-scope work
• Unapproved time entries
• Overtime hours as a percent of total labor
• Labor cost per unit produced (e.g., feet of pipe, panels installed)

With Rhumbix, these metrics can be monitored in real time across crews and projects, making it easy to benchmark and improve workforce performance.

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Case Study: Thomas Cavanagh Construction

Thomas Cavanagh Construction needed more timely visibility into labor performance across job sites. Before Rhumbix, they relied on manual workflows that delayed reporting and obscured performance trends.

After adopting Rhumbix Timekeeping and Production Tracking, the results were immediate:

• Faster and more transparent communication between field and office
• Reduced time spent on collecting and reviewing daily reports
• More confident decision-making based on real-time labor insights

“The speed and accuracy of information provided by Rhumbix enables us to move from monthly to near real-time reporting.”
– Ryan Quesnel, Manager of Development and Integration, Thomas Cavanagh Construction

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The ROI of Smarter Timekeeping

Contractors who modernize their labor tracking see measurable business improvements:

• Reduce payroll errors and approval times
• Eliminate manual reporting tasks
• Spot and correct performance issues early
• Improve job costing and forecasting
• Stay compliant with labor laws and union rules

With the right tools and practices, labor cost control doesn’t have to feel like guesswork.

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Ready to Take Control of Labor Costs?

Rhumbix delivers a digital timekeeping and production tracking platform designed specifically for trade contractors. Whether you’re managing one crew or hundreds across multiple projects, Rhumbix gives you the real-time data and reporting needed to stay ahead of labor risks.

Don’t wait weeks to know where your labor dollars are going—know today.

See Rhumbix in action