Labour Costs: Impact on Project Financial Progress


Project Vectors

26 Jun 2023

The construction industry has always been a significant player in the global economy, yet it’s marked by inefficiencies that can lead to significant cost overruns. Among the primary factors that influence the cost of construction projects is labour. With a broad scope of tasks ranging from simple to complex, tracking labour costs in construction has always been a daunting task. However, the digital revolution is now changing the game.

Understanding Labour Costs in Construction Projects

Labour costs are the total amount of money paid to employees in exchange for their work on a project. It is a significant component of total project costs and includes the direct costs of wages and benefits for workers. Mismanagement of these costs can significantly inflate a project’s budget and negatively impact profitability.

Accurate tracking of labour costs is crucial to gauge project performance, provide an accurate job costing, identify any cost overruns promptly, and make data-driven decisions. Traditionally, these costs were calculated manually, leading to potential inaccuracies due to human error, time theft, or fraudulent practices. Also, the process was laborious and time-consuming, diverting valuable resources from core operations.

Digitalisation: The Game Changer PVManager

Fortunately, with advancements in technology, innovative solutions like PVManager have been developed to automate this process and provide an accurate, real-time view of labour costs. This digital system allows companies to capture their labour’s timesheet digitally and calculate their cost per day by multiplying their working hours with their hourly rate. The system then aggregates these costs and incorporates them into the project’s overall cost.

PVManager site diary showing total labour costs

The dashboard offered by PVManager provides companies with a comprehensive view of their worker’s hours, and location. This transparency empowers businesses to monitor their workforce effectively, adjust staffing levels as required, and keep projects on budget and schedule.

PVManager Dashboard

Benefits of Digitalisation

  1. Accurate Costing: With digital timesheets, the scope for errors is drastically reduced. The system automatically calculates the cost per day based on the hourly rate and working hours, ensuring that the labour cost captured is precise and reliable.
  2. Real-Time Tracking: PVManager provides real-time data on the workforce’s location, hours worked, and productivity. This visibility helps manage the workforce effectively, ensuring they are at the right place at the right time.
  3. Efficient Resource Allocation: By providing a clear view of the workforce’s productivity, PVManager helps project managers allocate resources efficiently, maximising productivity and profitability.
  4. Transparency: By logging time in and out, PVManager offers complete transparency, reducing chances of time theft or false reporting. It also promotes a culture of accountability among the workforce.
  5. Data-Driven Decisions: With a complete picture of labour costs and productivity, businesses can make informed decisions to ensure projects remain on track and within budget.


Accurately capturing labour costs is a critical aspect of managing construction projects, directly influencing a project’s overall cost and profitability. Embracing digital solutions like PVManager can transform the way businesses track, manage, and control labour costs, bringing in more accuracy, transparency, and efficiency. In the age of digitalisation, staying updated with such technological advancements can be the difference between project success and failure.

Learn more about PVManager: Construction Project Management Software Australia – PVManager | Project Vectors

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