Labor costs can drive profitability down more than any other factor when running a construction company. You’re already taking the time to manage material and production costs, but are you doing enough to control labor?
Even if you’re having contractors “clock in” by writing down their times on a sheet or punching in on an old fashioned time clock, that is not enough.
LMS Eliminates Imperfect Time Keeping
Using an imperfect time system leads to bad record keeping. For instance, if a contractor writes down they arrived at 8:00 am according to their watch, but company time says its 8:10 am, you just paid for 10 minutes of unused time. While that doesn’t seem like much, having 30 contractors all claiming those extra ten minutes ends up being 5 hours of paid time daily that you’re not getting any productivity out of. With an LMS, the contractor clocks in and the time is standard across the entire company. You will never have to worry about paying for unused time again.
LMS Eliminates Falsifying Data
Keeping up with dozens of contractors is difficult if you’re not on-site at all times. With a GPS-enabled LMS, you no longer have to worry about paying contractors for work not being done. If a contractor leaves the site, you will be notified immediately. When contractors go on lunch break they clock out on the LMS and clock back in when they return. A contractor cannot falsify their time when it is accurately tracked.
LMS Allows For Accurate Data Collection
Having an LMS allows you to see exactly where and how labor dollars are being spent on each job. You also have the ability to pull up your labor as a raw number and use it to calculate how much you’re spending as a percentage of overhead. Seeing these numbers, you’ll be able to adjust how many contractors are used and how many labor hours are allowed. This can shave 5-10% off of your overhead which can lead to way better profits.
Having an LMS will:
Eliminate imperfect time keeping
Eliminate falsified data
Keep your data accurate and functional