In that time, paper gets lost. Details get forgotten. GCs push back on charges they don’t remember authorizing. Revenue walks out the door.
T&M billing software exists to close this gap. The right tools cut processing from weeks to days, provide real-time visibility into billable work, and create the documentation trail that gets you paid.
This guide covers why manual T&M tracking fails, what features to look for in billing software, and how to implement digital tracking without disrupting your operations.
The Hidden Cost of Manual T&M Tracking
Paper-based T&M processes create problems at every stage:
Lost Documentation
Paper tickets get lost in transit. Foremen forget to submit them. Photos never get attached to the right work order. When it’s time to invoice, the backup isn’t there.
Time Fraud Exposure
Foreman-logged hours without verification open the door to time inflation. One contractor discovered a worker padding hours, costing $2,500 before detection. Multiply that across crews and projects.
Administrative Burden
Manual data entry takes approximately 7 minutes per time card. For a 100-worker crew, that’s 2 full days of administrative work monthly, just on data entry.
Billing Disputes
Without timestamped, verified records, every T&M charge becomes negotiable. GCs push back on hours. Owners question material costs. You spend time defending charges instead of getting paid.
Cash Flow Impact
A 24-day delay means nearly a month of work sitting unbilled. For contractors running tight margins, that cash flow gap can be the difference between making payroll and scrambling for a line of credit.
Essential Features to Look for in T&M Billing Software
Core Tracking Features
- Real-time labor tracking: Clock-in/out with automatic time capture
- Material cost logging: Track materials used with costs and quantities
- Equipment usage: Log equipment hours with rental rates
- Automated markup: Apply contractual markups automatically
- Photo documentation: Attach time-stamped photos to T&M tickets
Mobile Field Capabilities
- Mobile app access: Field crews track T&M from phones and tablets
- Offline functionality: Works without cell service, syncs when connected
- T&M toggle: Easy switching between fixed-price and T&M work
- Daily report generation: Create T&M reports for on-site sign-off
Verification and Security
- GPS/geofencing: Verify workers were on-site when work was logged
- Biometric options: Facial recognition or fingerprint for identity verification
- Timestamped entries: Automatic timestamps on all entries
- Digital signatures: GC/owner sign-off captured digitally
Billing and Invoice Features
- Customizable templates: Match your invoice format
- Automated invoice generation: Create invoices from approved T&M tickets
- NTE limit tracking: Monitor not-to-exceed caps in real time
- Multiple rate sheets: Manage different rates for different clients/projects
Integration Requirements
- Accounting integration: Sync with Sage, QuickBooks, or your accounting system
- Payroll connectivity: Flow time data directly to payroll
- ERP integration: Connect with construction ERP platforms
- Data export: Export to CSV, Excel, PDF as needed
How T&M Billing Software Delivers Results
Processing Time: Weeks to Days
Digital processes reduce T&M tag processing from 2-6 weeks to 1-2 days. Contractors report 50% or more reduction in change order processing time.
Real-Time Visibility
See T&M costs as they’re incurred—not weeks later when the paperwork finally arrives. Catch cost overruns 2-3 weeks earlier than manual methods allow.
Faster Payments
Clear, approved records with photos and signatures reduce back-and-forth negotiations. When everything is documented, disputes decrease and payments flow faster.
Protected Revenue
No more lost tickets. No more forgotten charges. Every billable hour and material gets captured and submitted.
Better Estimating
Historical T&M data from digital systems can benchmark future change orders and improve estimating accuracy on similar work.
Administrative Savings
Contractors report 50% reduction in payroll processing time—some saving 10+ hours per week that previously went to manual data entry.
T&M Billing Software Options
Several solutions address T&M billing needs:
Field-First Solutions
Rhumbix: Built for field workforce management with integrated T&M tracking. Features digital timekeeping, T&M capture, and seamless data flow from field to office. Best for trade contractors and self-performing GCs.
SmartBarrel: Biometric time tracking with facial recognition and geofencing. Creates indisputable proof for every hour billed. Best for contractors prioritizing verification.
Heavy Construction
HCSS HeavyJob: Field operations software with T&M toggle button and automatic time card consolidation. Generates daily T&M reports for on-site approval. Best for heavy civil contractors.
Trimble B2W Track: Field logging with T&M separation from fixed-price work, reusable price sheets, and cost limit tracking. Best for heavy construction operations.
Construction Accounting
FOUNDATION Software: Construction accounting platform with T&M billing module. Features automated markups, customizable invoices, and job cost integration. Starting at $400/month.
Change Order Integration
Clearstory: Purpose-built for change order and T&M management. Processes T&M tags in minutes with digital approvals and photo documentation. Best for commercial construction teams.
Best Practices for Implementation
1. Start with Contract Terms
Define hourly rates, material markups, and labor restrictions in your contracts before work begins. Software enforces what contracts establish—get the terms right first.
2. Map Your Workflow
Document your current T&M process before implementing software. Identify where tickets get lost, where approvals bottleneck, and where data entry happens. The software should match your workflow, not force a new one.
3. Start Small
Pilot digital T&M on one project or crew before rolling out company-wide. Work out the kinks, build confidence, and gather success stories that help with broader adoption.
4. Train Field Crews
The best software fails if foremen don’t use it. Invest in training that shows crews why digital tracking benefits them—faster approvals, fewer disputes, cleaner documentation.
5. Establish Daily Review
Assign team members to review and authorize T&M tickets daily. Same-day approval minimizes disputes and keeps the billing pipeline moving.
6. Capture Supporting Documentation
Use time-stamped photos, geotagging, and digital signatures for every T&M ticket. This documentation becomes your defense when charges are questioned.
7. Integrate with Accounting
Connect T&M software to your accounting system for unified billing workflows. Manual re-entry defeats the purpose of digital capture.
Calculating the ROI
Consider these factors when evaluating T&M billing software:
Time Savings
7 minutes per time card x number of weekly time cards = hours saved. At administrative labor rates of $25-40/hour, the math adds up quickly.
Revenue Recovery
What percentage of T&M charges currently get lost, disputed, or reduced? Even recovering 5-10% of previously lost revenue often covers software costs.
Cash Flow Improvement
Reducing billing cycle from 24 days to 2 days means getting paid 3+ weeks faster. Calculate the value of that cash flow improvement for your operation.
Dispute Reduction
Fewer disputes mean less time defending charges and more time on productive work. Documentation that holds up reduces negotiation and write-offs.
Frequently Asked Questions
What is T&M billing software?
T&M billing software is a digital tool that helps construction contractors track time and materials work, generate T&M tickets, manage approvals, and create invoices. It replaces paper-based processes with automated workflows and real-time visibility.
How much can T&M billing software save?
Contractors report 50% reduction in processing time, 50% reduction in payroll processing, and the ability to catch cost overruns 2-3 weeks earlier. Actual savings depend on your current processes and T&M volume.
What integrations should T&M software have?
Essential integrations include accounting software (Sage, QuickBooks), payroll systems, and ERP platforms. Mobile functionality and offline capability are critical for field use.
How do I prevent T&M fraud with software?
Look for verification features: GPS/geofencing confirms location, biometric options verify identity, and timestamped entries create an audit trail. Combined with daily approval processes, these features minimize fraud risk.
Key Takeaways
- Manual tracking fails: 24-day average delay from field work to billing creates significant revenue leakage
- Digital delivers: Processing time drops from weeks to days with 50% time savings
- Essential features: Mobile access, real-time tracking, verification, accounting integration
- Start small: Pilot on one project before company-wide rollout
- Daily review: Same-day T&M approval minimizes disputes
- Documentation matters: Photos, GPS, signatures create defensible records
Every day your T&M process runs on paper is a day you’re leaving money on the table. Digital T&M billing software captures the revenue you’ve earned and gets you paid faster.
