How do I track labor costs by job in construction?
The foundation is time tracking. Every hour worked needs to be recorded and assigned to a specific job as it happens, not reconstructed later. Waiting until the end of the week means relying on memory, which produces inaccurate data. If your crew worked on three jobs Monday, you need to know how many hours went to each one.
Start with a consistent method your crew will actually use. Paper timesheets work if your team fills them out daily and you collect them weekly. Time tracking apps like Busybusy, ClockShark, or ExakTime let workers clock in and out from their phones and assign time to jobs in real time. The method matters less than consistency.
Capture more than just hours. Record the job name or number, the worker’s name, and the type of work performed. This detail lets you analyze labor costs by phase or cost code, not just by job. That’s how you discover that your framing crew is consistently faster than estimated while your finish work always runs over.
Don’t forget burden costs. An employee making $25/hour doesn’t cost you $25/hour. Add employer payroll taxes, workers compensation insurance, and any benefits you provide. A $25/hour employee might actually cost $32-35/hour fully loaded. Use the burdened rate when calculating job costs.
Enter time data into your accounting software weekly. QuickBooks and other construction job costing software let you assign labor costs to specific jobs. If you’re using timesheets, someone needs to enter that data. If you’re using a time tracking app that integrates with QuickBooks, the process is more automated but still needs review.
Reconcile weekly to catch errors. Did someone forget to switch jobs when they moved to a different site? Did hours get assigned to the wrong project? Did overtime calculate correctly? Weekly reconciliation takes 30 minutes. Fixing three months of bad data takes days.
Subcontractor labor is different from employee labor. You’re not tracking their hours. You’re tracking their invoices. When a sub bills you, code that expense to the job. The distinction matters because subs are a job expense rather than payroll, but they’re still labor costs for that project.
The goal is knowing what labor actually cost on each job so you can compare it to your estimate. If you bid 200 hours of labor at $30/hour burdened and the job took 280 hours, you need to know that before you bid the next similar job. A construction bookkeeper in American Fork who understands job costing can help you set up systems that make this tracking manageable rather than overwhelming.
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What bookkeeping services are available in Utah County?
Utah County has a range of bookkeeping options from solo practitioners to specialized firms. The best fit depends on your business type and whether you need industry-specific expertise like job costing for construction.
Read answerWhy is my profit different from my estimate at the end of a job?
The gap usually comes from labor overruns, material cost changes, untracked change orders, or expenses that never got coded to the job. Separating real cost increases from tracking problems helps you fix the right issue.
Read answerHow do I track subcontractor costs by project?
Enter every sub invoice with the correct job assigned the same day it arrives. Track committed costs from contracts, not just payments, so you see your true position before invoices land.
Read answerWhy are my job cost estimates always wrong?
Job cost estimates typically miss because you're not learning from completed projects. Without tracking actual costs by phase and cost code, every new estimate relies on gut feeling rather than real data from your own jobs.
Read answerHow do I compare estimated vs actual job costs?
Structure your estimates and actuals the same way, then track every expense by job, phase, and cost code. Compare weekly during active construction so you catch variances while you can still react.
Read answerCan I find a local bookkeeper in Utah County who understands job costing?
Yes, though bookkeepers with genuine job costing expertise are less common than general bookkeepers. Look for someone with actual construction industry experience who can explain how they track costs by job, not just by expense category.
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