Lumber Toolkit
November 27, 2023
min read

Why Labor Tracking is important?

November 27, 2023
min read
Time Tracking

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From balancing project timelines to managing the workforce, life as a construction subcontractor or specialty contractor is pretty hectic, isn't it? If there's anything that can give you a hand in that chaos, it would be labor tracking.

Not just a fancy buzzword, labor tracking is that hardworking pal providing insights into your most valuable resource - your crew. The importance of labor tracking cannot be overstated, especially in an industry where profit margins can feel as thin as a balance beam.

What is Labor Tracking?

In the Construction industry, Labor Tracking is the process of monitoring the number of hours, construction workers work on a project.

Why is Labor Tracking important?

Labor tracking is important for several reasons -

  1. It helps businesses accurately measure and calculate labor costs, allowing them to have a clear understanding of their expenses related to employee wages and benefits. This is crucial for budgeting and financial planning purposes.
  2. It enables you to assess productivity and efficiency levels. By monitoring the time spent on different tasks and projects, organizations can identify areas where improvements can be made. This information helps management make informed decisions to optimize workflow and allocate resources more effectively.
  3. Tracking the time spent on different projects and tasks helps businesses monitor progress, measure performance, and evaluate the success of various initiatives. This data can inform future project planning and resource allocation decisions.
  4. It assists in complying with labor laws and regulations. Companies need to accurately record employee working hours, overtime and mandatory breaks to ensure they are meeting legal requirements and avoiding potential penalties.
  5. It plays an important role in employee accountability and fair compensation. It helps ensure that employees are compensated accurately for the hours they work, including any overtime or additional time spent on specific tasks. This promotes transparency and fairness in the workplace, fostering positive employee relations.

Benefits of Labor Tracking

1. Resource Optimization:  If you are a subcontractor or a specialty contractor, having the right workforce in the right place is important. Investing in a good Construction labor tracking software will help you manage skilled labor efficiently, ensuring optimal deployment on various tasks and projects leading to increased productivity and improved project outcomes.

2. Accurate Cost Estimation: Cost estimation is the backbone of any successful construction project. Recording precise hours of work completed requires sustained effort but a good time-tracking application will automate the process saving you time and cost. When you have accurate data at your fingertips, you can make well-informed decisions during budgeting and reduce the risk of cost overruns. This also ensures financial stability in the long run.

3. Real-time Project Monitoring and Control: Juggling multiple projects simultaneously is a challenge and that’s why subcontractors and specialty contractors need real-time insights into project progress. With Construction labor tracking software in place, you can track the completion of tasks, identify potential bottlenecks, and proactively address issues. This level of visibility enables agile decision-making, leading to improved project management and on-time delivery

4. Compliance and Regulation: Staying compliant with labor laws and safety regulations can be complex and demanding. That’s why, you need software with built-in compliance for labor regulations, overtime rules, labor union agreements, union rates, safety, contracts, and agreements. A smart labor tracking application with built-in compliance will help you avoid labor disputes, legal entanglements and safeguard your reputation. It also helps you focus on the project’s success rather than worry about being compliant.

5. Evidentiary Support for Change Orders and Claims: In the event of change orders or claims, you will need to provide contractors with evidence to substantiate additional costs or delays. This documentation bolsters your position during negotiations, protecting you from unwarranted disputes and ensuring that you receive rightful compensation.

6. Performance Evaluation and Skill Development: Using labor tracking software you can also accurately evaluate the performance of individual workers and teams while identifying areas of improvement. You can provide them with targeted skill development and training, leading to a more competent and efficient workforce.

7. Enhanced Client Communication and Transparency: Communicating progress, and providing verifiable reports of work performed builds trust and fosters stronger client relationships, and increases the likelihood of repeat business.

With accurate labor tracking in place, you're positioning yourself to hit deadlines, push productivity to its maximum, and keep those hard-earned dollars where they belong - back in your business.

But why go it alone when there's a tool designed specifically to help you?

Lumber - a construction workforce management platform, can be your partner in this journey. Our platform is poised to fulfill your labor tracking needs, saving you time, stress, and, most importantly, money. So, why wait? Check out Lumber today and let us help streamline your labor tracking process and usher you into an era of increasing efficiency and streamlined operations.

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