Contractors often balance field work, travel, materials, subcontractors, and client changes across several jobs. A useful time system captures work close to the job site without making every entry an administrative burden.

Start from the records the business actually needs. Client billing, worker payment, job costing, and regulatory records can have different requirements. Confirm employment and recordkeeping obligations with the appropriate authority or adviser for each jurisdiction. Document which record controls each process so a client invoice is not treated as a substitute for payroll or legally required worker records.

Design the project structure

Create a unique project for each job and divide it into useful phases or cost codes. The structure should match the estimate closely enough to compare planned and actual labor.

Keep names stable across estimates, time records, change orders, and invoices. This prevents the same work from being scattered across slightly different labels when the job is reviewed.

  • Unique client and project identifier
  • Phase, trade, or cost code
  • Worker or subcontractor assignment
  • Standard and special rate category

Capture field time accurately

Record time at arrival, departure, or another agreed job checkpoint. Include the work location and task, while collecting location data only when it is necessary, disclosed, and handled according to applicable rules.

Supervisors should review missed punches, overlaps, travel, breaks, and unexpected overtime promptly. Corrections should remain visible and be approved by the person responsible for the record.

  • Record time close to the work
  • Assign the correct job and task
  • Describe the completed activity
  • Review corrections and exceptions

Separate labor from other costs

Time records should distinguish labor from materials, equipment, mileage, and reimbursable expenses. Each cost can then follow the pricing and approval method in the agreement.

Identify non-billable callbacks, training, estimating, and administration even when they are not shown to the client. These costs affect margin and can expose recurring quality or planning issues.

  • Labor hours by rate
  • Materials and equipment separately
  • Approved travel or mileage
  • Non-billable rework and overhead

Connect time to job costing and invoices

Compare actual labor hours with the estimate by phase. Review variances while the job is active so scope changes, productivity issues, or incorrect assumptions can be addressed before the final invoice.

Use approved client-billable time to create invoice lines and preserve the underlying detail. Do not assume that every paid worker hour is automatically chargeable to the client; follow the contract and approved changes.

  • Compare estimated and actual labor
  • Approve client-billable entries
  • Create itemized invoice lines
  • Review margin after completion

Frequently asked questions

Questions about time tracking for contractors

Should contractors track travel time?

Track it when it affects worker records, project cost, or client billing. Whether it is payable or chargeable depends on the applicable rules and agreement.

Can one worker record time on several jobs?

Yes. Each work block should be assigned to the correct job and task so hours are not duplicated and project costs remain accurate.

How often should contractor time be approved?

Review exceptions daily and complete formal approval before payroll or invoicing. The schedule should leave time to correct records without delaying payment.