Construction Software With Real Time Payroll Data – A Worthy Investment

Construction Software With Real Time Payroll Data – A Worthy Investment

Having the right tools for a job is almost as important as having the skills necessary to complete the task.  Yet, many construction companies fail to see the need for a construction accounting software package that captures payroll data in real time.  No doubt they have the skills to complete the job, but this tool can help to make that job more profitable. 

Payroll is an inherent piece of any construction project budget and final cost.  It reflects the manpower labor costs necessary to complete the job.  As such, it is key to have this data at your fingertips at all times and it needs to be as accurate as possible.  The most accurate way to collect this data is in real time.  Having real time data allows decision makers to make sure the project is properly directed and helps them make better decisions before and after deviations are made from the plan.

Estimating up to date figures is inaccurate and takes time, which costs money.  The amount of time it takes is often increased due to the pay structure of many construction companies – often workers with more diverse skill sets receive higher wages.  Calculating the potential costs for 12 workers for varying time periods that have different wages can get confusing and will most certainly take time away from activities that a manager could be doing that add value to the project. 

Real time data leaves no need to estimate or get confused about the financial impacts of using a different labor force.  Even data that is only a day or two old can lead to ineffective monitoring of the project’s bottom line, which can result in decisions being made a day or two later than they should have been.  The impact of these 2-day-late decisions on the bottom line can be pretty big if you consider multiple decisions like this made over the life of a project that lasts for several months. 

These factors have led construction software manufacturers to begin including as much real time data as possible, for good reason.  Today’s market moves faster than ever and new risks arise every day, requiring decisions to be made in the middle of the project that were not expected.  Would you rather make those decisions with the most accurate data you can possibly have or with old data and some estimates?

Beware, however, that too much real time data can be overwhelming at first.  If you’re used to working with the old system of old data and projections, a wealth of real time data can be intimidating.  However, after an initial getting used to period, you’ll soon realize that real time data leads is simply the best tool you can have when it comes time to make those on-the-fly decisions. 

In a perfect world, every construction project would be executed exactly according to plans and would finish exactly on budget.  However, unexpected changes, weather, supply chain issues, and other common hiccups lead to projects that rarely (if ever) follow the initial plan. 

For example, perhaps a big milestone is approaching for a particular project and the supervisor realizes that he does not have the personnel on hand that was planned to complete the task.  As a result, the supervisor has a different group complete the task.  Thus, the actual cost of that piece of the project will either be over or under the budgeted amount.  With real time payroll data, decision makers will be able to see those different costs reflected in actual costs as they happen.  With this data, they can make the best possible decision for how to make up for the overages and finish on budget or how to continue to operate under budget. 

Construction software with real time payroll data gives companies an additional bit of flexibility when executing a project.  Since deviation from the original plan is more of “the rule” versus the “exception,” being able to move forward with the project with the most accurate data possible is a benefit that is most certainly worth having.

David Kraft is a freelance author that specializ


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