construction technology, Payroll & Accounting, Safety & Compliance, Subcontractor —

Top 5 Challenges in Construction Timekeeping

PeritusOctober 29, 2024 • 6 min read

Timekeeping is a critical component in the construction industry, yet it is often one of the most challenging processes. Inefficient time tracking can cause problems. It can lead to inconsistent data collection and compliance risks. This can result in project delays, higher costs, and frustrated workers.

Addressing these pain points is essential to streamline operations and maintain profitability. Rhumbix Timekeeping aims to solve these challenges directly. It provides construction teams with a more efficient, compliant, and easy-to-use experience.

In this article, we will look at the top five challenges in construction timekeeping. We will also see how Rhumbix solves these issues. Additionally, we will share new insights on productivity and ERP integration.

1. Manual Entry Errors

The Problem

One of the most persistent issues in construction timekeeping is the reliance on manual entry. Manual processes can lead to mistakes. These include wrong data entry, missed entries, or hard-to-read handwriting.

This can happen with paper timesheets or Excel spreadsheets. These errors distort labor cost tracking and affect payroll accuracy, leading to employee dissatisfaction.

How Rhumbix Solves It

Rhumbix replaces manual processes that often lead to mistakes. It offers digital timekeeping, so workers can clock in and out using their mobile devices. This digital approach ensures accurate, real-time data collection automatically syncs with the cloud.

The system’s intuitive design reduces user error and simplifies data review for supervisors. Rhumbix also works with current payroll and ERP systems. This helps reduce errors and ensures that managers pay employees correctly for their work hours.

2. Inaccurate Labor Cost Tracking

The Problem

Accurate labor cost tracking is critical to project success. However, without real-time insights, managers often use old reports or estimates. This makes it hard to know the current status of labor budgets. Inaccuracies in labor tracking can lead to budget overruns and disputes over labor costs, especially in complex projects.

How Rhumbix Solves It

Rhumbix Timekeeping gives project managers a clear view of labor costs. They can see labor hours as they add in real time. By breaking down hours by project, phase, or cost code, Rhumbix helps teams monitor and manage budgets proactively. This capability improves forecasting and enables quick decision-making to reallocate resources or adjust timelines.

3. Non-compliance with Labor Laws

The Problem

Labor law compliance is a significant concern in construction, given the potential penalties for violations. Construction firms must adhere to various overtime, breaks, and fair labor practices regulations. Inaccurate timekeeping records can result in non-compliance, exposing contractors to legal risks and costly fines.

How Rhumbix Solves It

Rhumbix helps construction companies stay compliant. It automatically tracks and records employee work hours, breaks, and overtime according to labor laws.

The system also generates audit-ready reports, providing a clear record of labor hours to ensure compliance. This feature especially benefits firms managing projects across different states or regions where labor laws vary.

Rhumbix has features like Clock-In Clock-Out and Kiosk Mode. These tools make it easier to check in employees. They also help reduce legal concerns and lower compliance risks.

4. Lack of Productivity on Jobsites

The Problem

A recent McKinsey study found that the construction sector’s productivity has only increased by 1% each year. This has been the case for the past 20 years. In comparison, the global economy has grown at a rate of 2.8%.

One main reason for this stagnation is poor time tracking. This issue impacts labor allocation and resource management. Inaccurate or delayed timekeeping hinders a project’s ability to manage workforce productivity, leading to delayed timelines and increased costs.

How Rhumbix Solves It

Rhumbix timekeeping empowers project managers to track productivity metrics more accurately. By integrating real-time labor data with performance analytics, construction teams can immediately identify issues like underutilized labor or time delays. This data-driven approach enables managers to adjust labor plans promptly and ensures that they allocate resources efficiently.

Rhumbix’s integration capabilities with ERPs also enable a seamless flow of information, allowing for faster decision-making and better labor utilization. When you connect timekeeping to the broader project management ecosystem, productivity improves significantly.

5. Limited ERP Integration for Streamlined Operations

The Problem

Many construction firms struggle with siloed timekeeping systems that don’t integrate well with their Enterprise Resource Planning (ERP) software. This lack of integration creates data silos. It increases manual entry and stops real-time updates to financial and project management systems. As a result, contractors often experience delays in processing payroll, inaccurate cost coding, and challenges in economic forecasting.

How Rhumbix Solves It

Rhumbix’s Timekeeping solution is designed to integrate seamlessly with leading ERP systems, such as Procore, Viewpoint, and Sage. This integration streamlines operations by syncing timekeeping data with financial, HR, and project management systems. Rhumbix reduces administrative workload and improves data accuracy across the board by eliminating the need for redundant data entry.

Real-time syncing allows project managers to see current labor costs in their ERPs. This helps them forecast and track budgets more accurately. This integrated approach ensures that construction firms can better control labor and financial data, improving overall project outcomes.

Real-World Results: St. Andrews Construction Timekeeping Case Study

St. Andrews Construction, a leading contractor in commercial construction, faced several challenges with its traditional timekeeping processes. Manual data entry, inconsistent record-keeping, and compliance issues affected its bottom line and workforce satisfaction. After implementing Rhumbix Timekeeping, St. Andrews saw a dramatic improvement in time tracking accuracy, productivity, and compliance.

Key Results:

  • Fewer Timekeeping Errors: St. Andrews cut manual entry errors by 90%. This led to more accurate payroll and happier employees.
  • Better Compliance: With automated break tracking and overtime monitoring, St. Andrews followed local labor laws. This reduced the risk of legal penalties.
  • Improved Productivity: Mobile timekeeping lets workers clock in and out from the field. This increases time capture accuracy and reduces unnecessary travel to central sign-in locations.
  • Better Budget Tracking: The connection with St. Andrews’ ERP system gave real-time updates. This helped the company control labor costs and project budgets better.

Why Rhumbix is the Right Choice for Construction Timekeeping

Rhumbix Timekeeping specifically addresses the unique challenges construction firms face. Rhumbix helps contractors boost productivity, reduce costs, and improve workforce management by eliminating manual processes, enhancing compliance, and offering real-time insights. Its smooth connection with ERP systems makes it a strong tool for construction companies. It helps them improve their operations and gain better control over their labor and financial data.

Conclusion

Timekeeping in construction is sometimes a source of frustration and inefficiency. With Rhumbix’s digital solution, construction firms can overcome the most common timekeeping challenges and drive better project outcomes. By using a digital-first approach and connecting it with your ERP, companies can improve accuracy and compliance. This also gives their teams the tools they need to perform well.