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In the construction world, labor and materials are the two most important resources when it comes to bidding on jobs. If you don’t have enough labor, the project gets pushed back. If you have too much labor, you’re wasting money and potentially putting your workers in unsafe conditions.  

That’s why time tracking is so important for construction companies. It helps project managers plan out resources accordingly for the job, proactively mitigate risks, and keep projects on schedule. Traditionally, time tracking has been done manually, which leaves room for costly errors. In fact, the U.S. economy loses around 50 million hours a year due to errors in timesheets!  

Luckily, we live in a time where there are great options for time-tracking software to help companies save money and plan more accurately. 

In this blog post, we will dive into the transformative possibilities of time-tracking software, how to choose the right software for your company, and best practices for implementing this software across your organization. 

Costs of Manual Time Tracking 

Time tracking is essential for planning projects, managing costs, and monitoring progress. However, we also understand that with manual time tracking, errors can be made if we aren’t careful. But mistakes do happen (we’re human after all), requiring rechecking and correcting any mistakes, which can take up a great deal of time.  

Aside from time, manual time tracking causes other problems like: 

  • Inaccurate reporting: Part of the human condition is that we make mistakes. Manual time tracking is susceptible to human error affecting the total hours worked and leading to inaccurate payment to your workers. 
  • Delayed entry: Unlike software updated in real-time, manual time tracking is delayed, meaning companies must wait to receive information about labor costs and project tracking. 
  • Poor project management: If you have inaccurate time reports, it’s hard to tell when a project is nearing completion. It can also result in overtime if you don’t have enough workers, increasing costs. 
  • Audit and compliance risks: Workers are protected by labor laws, which companies must abide by. Inaccurate hours may cause labor to exceed what is acceptable. If companies are not compliant with the laws, this can result in legal hurdles and hefty fines. 

Moreover, manual time tracking comes with many drawbacks. We live in a digital age and have access to software that can help us reduce errors, save time, and standardize processes.  

If you haven’t done so already, consider implementing a time tracking software at your company. Be thorough in your research because not all time-tracking software is created equal. Read on to discover what you should be looking for in a solution. 

Which Time Tracking Software is Right for You? 

Now that we’ve identified why it’s beneficial to have time-tracking software instead of manual tracking, the question is—how do you select the right software for your company? With so much software out there claiming to be the best in the business, it is important to have some criteria in mind that will make the selection process a little easier. 

Here are a few of the qualities you want to have in a time-tracking software: 


Select time-tracking software that is user-friendly and has a minimal learning curve so you and your team can get started using it right away. Also, look into the onboarding process and whether they offer any training. Another element to look for is support. Make sure you choose a system that offers prompt support when needed. A strong support team can make all the difference in a time-tracking app. 


Construction workers typically aren’t confined to an office all day and are often on the go at different job sites, where their mobile phone is the only device they have. Look for time-tracking software with a mobile-friendly interface so workers can reliably track their hours, no matter where they are. 


Find software that integrates with your accounting system. This will make processes more efficient, eliminating the need for manual data entry. Instead, all the data can be pulled from your time tracking app, reporting billing and payment info in real-time. 


The construction industry has many compliance and security standards that companies must uphold. Make sure your time tracking system is compliant with these regulations to avoid fees and a slew of other issues. 

Best Practices for Implementing Time Tracking Software 

If you’ve selected a time-tracking software and are eager to use it company-wide, check out these best practices beforehand to successfully implement the software and start reaping the benefits of automated tracking. 


The first step we recommend is to set aside time for everyone to be trained on your new software. Showing people how to use it ahead of time will hopefully reduce confusion and limit errors so that you and your company can start gaining value from the application more quickly. This might look like having a representative from the time tracking company hop on a Zoom call or record themselves reviewing how to use the platform. It could also look like in-person training for those who work in an office. Either way, having some standard training for everyone, and a person to go to for questions will be extremely helpful. 

Track projects separately 

If possible, track projects separately to get more accurate information on budgeting and resource allocation. This will help project managers forecast labor and supplies, identify bottlenecks, and optimize team efficiency 

Test and evaluate 

Once you have implemented the software, keep track of how it is being used and gather feedback on how it is working on your teams. Set a few goals or KPIs that you can track. For example, one goal could be to have everyone successfully onboarded within three months of purchasing the application. You can monitor this goal by asking managers to report who on their team has started using it, and who needs further instruction. Evaluate the effectiveness of the time tracking software by asking for feedback and comparing current time reports against ones in the past. This will give you an idea of how much time it saves. 

Overall, integrating a time-tracking system into your workflow will help save precious time, increase accurate reporting, and improve project management.  

Experience Time Tracking Built for Construction 

Cut the time you spend on employee time tracking with hh2’s easy-to-use tools built for the unique needs of Construction. Capture time the way you want with countless time-tracking options—whether clocking in for yourself or a whole crew at once. 

Book your demo to see how all time is coded to the right job and cost codes, routed to the right people for approval then seamlessly synced with your ERP. 

How Construction Time Tracking Software Can Save You Time and Money

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