THE CONSTRUCTION TIME & ATTENDANCE PLAYBOOK:

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1 THE CONSTRUCTION TIME & ATTENDANCE PLAYBOOK: A method for managing an essential business function. Ben Robbins, Mobile Product Manager We all know about time and attendance. At one time or another, we ve punched a clock or filled out a timesheet. In fact, many of us still do and those who ve been in construction long enough most likely remember the old checking brass method used on many jobsites. While the methods of tracking time and attendance may have changed, the importance of doing so stays the same. Unfortunately, what construction companies often overlook is that time and attendance truly drives the profitability of the business. In The Construction Time and Attendance Playbook we take an objective look at the best practices developed over the years, providing a foundation for initiating change, and a framework for measuring your company s progress. We hope that you will save this document and use it to evaluate where your business stands, help decide your company objectives, and put a plan in place to get there.

2 CONSTRUCTION HAS UNIQUE CHALLENGES Many construction organizations that have long somehow managed with old processes will no longer be able to compete unless they update their systems and modernize their thinking. As the industry recovers and more jobs are awarded, companies will need to be far leaner than they were at the height of the market. Effective time and attendance presents challenges to any type of organization, but in the construction industry, there are some very specific hurdles to overcome. The most obvious challenge is job costing. The need to charge time against a specific activity with its own budget isn t limited to construction, but its importance to overall profitability is unique to our industry. Managing job costs is an entirely separate process form processing payroll, but like payroll, it is very dependent on time and attendance. The collection of labor costing is most easily done when time is recorded, and is most accurate when done at the source, on the job. In the end, job costing adds a whole additional layer of complexity on top of the time collection process. The objective of collecting time at the jobsite brings home another reality of construction - the difficulty associated with sending and receiving information from remote locations that typically lack the infrastructure found in an office. The practicality of ensuring access to technology differs from company to company, even from job to job. This requires construction organizations to develop processes and systems that are flexible based on what is available on different jobsites and at different times. As if these headaches weren t enough, labor costing in construction is laden with other inherent complexities like union codes, certified payroll, and risk factors for insurance. Other information about job conditions and equipment often must be recorded alongside the time. Ultimately, the exact requirements vary greatly between companies depending on industry sector, role or specialty. All this adds up to an obvious conclusion: A generic notion of time and attendance doesn t

3 work for us in the construction industry. Let s look at a uniquely construction specific perspective on this topic. WHY TIME AND ATTENDANCE MATTERS TO CONSTRUCTION COMPANIES #1: Higher than expected hours are often a red flag that a crew is waiting for something. Overruns in a labor budget often conceal unbilled change orders - a hidden revenue opportunity. The ability to see what workers spend time on daily is a must. Solid labor tracking helps to turn problems into opportunities. Do your project managers or superintendents have to wait for payroll to be processed before they get the reports that tell them something is taking too long? The sooner they know, the sooner they can ensure everything is on track. #2: The level of detail at which time is tracked has a major impact on workers compensation premiums. Chances are your risk hours are being derived from an employee file or a craft code. If this is so, low risk hours get lumped under high-risk classifications as a result. Using cost codes to drive workers comp reporting can save you a bundle, but only if the time is reported accurately on the jobsite. When a claim is filed, can you verify whether an employee was on the job when an injury occurred? #3: Having accurate historical information lays the groundwork for winning profitable jobs. All labor history begins with time and attendance. The more granular the cost measurement, the more accurate estimates become across dissimilar projects and industry sectors. It s important to track all of the labor spent on a job, whether in the field or elsewhere. That means making sure that time spent in the office, shop or warehouse gets charged to the right jobs too. In an effort to limit bids to only the profitable types of work, more companies are beginning to track historic business development

4 costs. This allows a more accurate picture of each job s true costs, including those before the work is won. Of course, this requires that professionals closely track time spent estimating and bidding each job. GETTING STARTED To measure both projected and actual ROI, you need an accurate calculation of costs today. Put a price tag on the status quo! What is the cost moving forward if nothing were to change? Be sure and include costs associated with your current process. Add up hours spent recording time each week. This could be on paper, in a spreadsheet, or using specialized software or hardware. Include the time spent transporting time records whether via , fax, phone or driving paper to the office. Calculate how long project managers and/or superintendents spend reviewing and approving time each week. Add any time spent processing payroll, including keying in time and working with the field to correct mistakes. Once you ve accounted for the above and any other time spent every week on time and attendance, payroll or labor costing, multiply the time spent on each task by the average burdened rate of employees performing the task. Then, multiply that number by the number of weeks you process payroll in a year, and the annual cost of your time and attendance process will begin to take shape. Using the current numbers as your benchmark, track your progress as you make changes to the process. Some solution providers will help you to estimate the time you would save by streamlining and automating your process using time and attendance software.

5 PUTTING TECHNOLOGY TO WORK The remote nature of construction work is such that our industry benefits tremendously from new mobile technologies. Why send a PC or laptop where a cheaper, much more portable device will do? The computing capabilities of today s smart phones and tablets means that there s more power in our pockets than there was on our desks a few years ago. Consumer devices are now very capable of business tasks, and your workforce may already have them. Here are a few tips to get you started. #1: Start by selecting a carrier that has coverage where you need it. The proverbial map is crucial. Evaluate the devices they offer. #2: Do the math on ruggedized devices. Sometimes it s better to replace a cheaper phone more frequently. #3: Choose software that will work on a wide range of devices. The most affordable and popular platforms can change quickly. IN SUMMARY Any time you introduce software or hardware that doesn t communicate with existing systems, more work is created. Truly integrated job costing is a must. Ideally, new employees, job and cost codes will carry over to a tie and attendance system automatically and immediately from your job cost system. Make payroll processing bulletproof. Uploading time to payroll should never require redundant effort. An Integrated system is most efficient. If a file import is used, avoid systems that require manual reformatting of data.

6 Avoid non-sql databases and flat files. Integrating information and writing reports requires access to your data. When selecting a time and attendance system, picking one that runs on an industry standard SQL database will offer you the most power and flexibility into the future. Making an investment in new tools can quickly pay dividends. Even so, before buying a bunch of nifty gadgets, take a long look at the technology you ve already invested in. If employees already have access to a PC or laptop, you may not need anything but the right software. When selecting a time and attendance software package, be sure and examine the requirements carefully. Some software may work with your existing servers and software; others may not. Ask vendors to give you a list of any prerequisite software their product may require you to purchase. Ben Robbins, Mobile Product Manager with Viewpoint Construction Software Ben has over 13 years experience in the high-tech industry, including roles as a developer, product manager, business consultant and executive. Ben focuses on trends in emerging technologies, which he is able to apply daily in his current role as marketing and product strategist for mobile technologies. Ben enjoys working with customers, prospects and other industry influencers to discern needs and opportunities in the marketplace Coaxis, Inc. dba Viewpoint Construction Software. All Rights Reserved. Viewpoint Construction Software, Viewpoint V6 Software, Construction Imaging, Mobile Field Manager and 4Projects are trademarks or registered trademarks of Coaxis, Inc., dba Viewpoint Construction Software in the United States and/or other countries. Other names and brands may be claimed as the property of others.

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