The National Construction Payment Survey Report published in 2020 says that one in three construction businesses finish the project on tim...
The National Construction Payment Survey Report published in 2020 says that one in three construction businesses finish the project on time. Also, project owners have to pay extra labor costs in terms of time wasted by workers in other activities paid in the paycheck.
If you are a construction site manager, you have to find what is causing time wasted by workers that you pay in salaries. And work on minimizing it as much as possible. Otherwise, you'll pay the labor cost without getting something in return. Here, you'll learn how to reduce your financial drain in terms of time wasted by labor on the job. So, keep reading further. It'll help you in your future construction project management.
Let’s begin!
Why Should You Try to Reduce Wasted but Charged Timed?
The price of materials can go up anytime due to the demand and supply gap. Also, the weather and other factors can slow down your project while increasing the cost of rent on materials and equipment. Yes, you can’t control the increase in the cost of such domains. But you can be smart and focus on minimizing payroll. You’ll save thousands of dollars if you pay attention to the time your labor wastes on the job.
Providing accommodation to your labor is also a big challenge because its cost can minimize your profits and give you financial strains. Odessa is a beautiful city with many opportunities for construction business owners because many development projects are in execution, along with many more in the pipeline. Suppose you have a construction project in Odessa and need housing for your labor workforce. In that case, man camps in Odessa TX can suit your budget and project, as well as your workers.
How Do Workers Waste Time on the Job But Get Paid Full on Construction Sites?
Let’s face it: Every construction project manager has to pay for a lot of labor time that workers waste, and the employer does not value it. That’s why sometimes the cost of labor puts the whole project in jeopardy. Here’s how it happens in reality.
Worker’s Rounding Off
Suppose your shift starts at 8 a.m. and ends at 5 p.m. with 50 workers on the job, but not everyone will show right at 8 a.m. Some will come 15 minutes late, and some will start the work after spending half an hour chatting, greeting, and listening to stories. If 25 workers skip 15 minutes of the day and round it off on the timesheet, you have to pay for around 4 hours of labor without getting it. With $50 an hour, your payroll increases by $200 a day due to rounding off on timesheets by workers. In other words, you have to pay an extra $6000 of payroll each month that you can easily save and spend on materials.
Time Theft
Time theft is another problem that you must tackle using strict management principles. Workers will go for lunch 10 minutes early and come back 20 minutes late. If 50 workers steal half an hour each day, you have to pay for 750 hours in a month in stolen and valueless time. Imagine reducing $40000 from your payroll by catching time theft using strict time calculation rules.
Labor Costs of Manual Time Keeping
Manual timekeeping is outdated and a waste of time in the modern construction business. You have to hire a dedicated person to calculate and record daily timesheets without real value to your construction business. Let’s say you pay for two hours each day at $50 an hour for manual timekeeping and calculation. Then you bear $3000 per month on such outdated practice.
Human Error Costs
Manual timekeeping poses another challenge because there will always be errors and mistakes. Yes, you can remove errors in paychecks by reviewing everything twice. But it’ll always add the cost on your payroll one way or another. You will either pay for wrong amounts or pay for the time of the person who delivers everything correctly.
How to Reduce Wasted Time on Payroll?
Consider time wasted by workers on the job as a challenge because it reduces your chances of survival in a competitive market and eats a big chunk from your actual profits. Here’s how you can do it!
Automated Timekeeping
An automated timekeeping machine lets workers clock in and out using biometric verification. It calculates the correct labor time with accuracy in minutes. That’s why there will be no rounding off like timesheets, along with zero errors in hours’ calculation. Also, an automated timekeeping machine stops the clock when a worker goes off from duty outside the construction site’s premises. So, adopt the new technology and reap the rewards for your construction business, along with a reduction in your payroll payment while getting the correct time calculation.
Employee Schedule Optimization Software
Wrong crew settings are the most time-wasting hurdles on construction sites that you have to counter. Even one missing skilled worker can stop many processes, and you have to pay workers for not doing anything. You can use employee schedule optimization software to build crews and teams on the site during all shifts that do not have anything missing. Yes, employee schedule optimization software seems like a big investment. Still, it saves you ample time and puts productivity at a peak. So, embrace modern scheduling software as an essential working tool in your construction business. You’ll save time and cost on all labor while meeting your deadlines.
Conclusion
Financial drain due to time wasted by labor on the job can seriously minimize your profits in the construction business, and you can go really under in the market. Using automated timekeeping machines and schedule optimization tools can help you save a lot of money and create more profits in the same economy. Imagine using saved payroll money for growing your business in the right direction. The choice is always yours. Have a great day.
