Dec 8, 2025

How to See Your Labor Cost by Job When You Only Have a Small Crew

If you run a small crew, say 8 to 15 people on a roofing or landscaping job, you know how fast labor costs can slip through the cracks. Maybe your foreman forgets to log drive time, or hours get scribbled on scraps of paper that vanish by payroll day. Without clear job-level labor costing, you are flying blind on profitability.

This post cuts to the chase on how to see your labor cost by job even with a small crew. You will get a practical checklist, real-world tradeoffs, and a simple crew workflow that actually works on the ground. No fluff, just what you need to start tracking and controlling labor costs next week.

Why Job Costing Labor Matters for Small Crews

When your crew is small, every hour counts. If you do not know which jobs are bleeding labor dollars, you cannot price or schedule properly. For example, a 10-person concrete crew might spend an extra hour driving between sites daily, but if that time is not tracked by job, it looks like productive work. That adds up to thousands lost each month.

Job costing labor lets you:

Spot jobs that run long or require overtime
Adjust bids based on real crew performance
Hold foremen accountable for accurate time tracking
Improve scheduling and reduce downtime

What Usually Goes Wrong on Small Crews

Here is a typical scenario: You have a 12-person landscaping crew working two sites. The foreman writes hours on a whiteboard at the truck. Drive time and breaks get lumped in or forgotten. Payroll day, you scramble to piece together who worked where and when. The result: you guess labor cost by job, often underestimating it.

The problem is lack of clear responsibility and a simple system. When foremen are not accountable for detailed time tracking, or when you rely on memory and paper, errors multiply.

How to Actually Track Labor Cost by Job with a Small Crew

Step 1: Assign Foremen Responsibility for Daily Job-Level Time Logs

Make your foremen responsible for recording start and stop times for each crew member on each job. This includes:

Actual work hours on the job
Drive time between jobs or to supply runs
Breaks and downtime

Use a simple time tracking sheet or app on a phone or tablet. If you prefer paper, use a standardized form with columns for name, job code, start/end times, and notes.

Step 2: Keep Time Tracking Centralized and Consistent

Collect all daily logs at the end of the day or week in one place. This can be a shared folder, a single spreadsheet, or a time tracking app. Consistency is key. If you use paper, scan or photograph sheets daily to avoid lost data.

If you are still on paper and want a simple upgrade path, our 30 day plan for getting off paper timesheets walks through how to move crews over without chaos.

Step 3: Calculate Labor Cost by Job Weekly

Once you have hours by job, multiply by each worker’s hourly rate (including taxes and benefits). Add any overtime premiums. This gives you a clear labor cost per job for the week.

Step 4: Review and Adjust

Hold a quick weekly meeting with your foremen to review labor costs by job. Discuss any surprises like unexpected drive time or overtime. Use this info to adjust scheduling, bids, or crew assignments.

How to Accurately Allocate Labor Costs Across Multiple Jobs

When your crew splits time between multiple jobs in a day, accurate allocation is crucial. For example, if a crew member spends 3 hours on Job A, then drives 30 minutes to Job B and works 4 hours there, you need to track those hours separately.

Here is a simple approach:

Break the day into chunks by job and non-job activities (drive, breaks)
Have your foreman or crew member record start and stop times for each chunk
Use job codes or names consistently to avoid confusion
Track drive time separately but assign it to the job it supports (for example, driving to Job B counts as Job B’s labor cost)

If you are using paper forms, a column for job code and a notes section help clarify mixed days. Apps that let crew members clock in and out by job make this easier and reduce errors.

How to Track Employee Time for Job Costing on Small Crews

Tracking time on small crews does not have to be complicated. The biggest challenge is keeping it simple enough that foremen actually do it every day.

Here is what works:

Use a single sheet or app per day per foreman
Include columns for crew member name, job code, start time, end time, and notes (for drive time, breaks)
Train foremen to collect this info at the end of each job segment or when moving between sites
Review the logs daily or weekly to catch missing entries early

If your crew is tech-savvy, a time tracking app like TimeCamp can simplify this by letting crew clock in and out by job on their phones. It ties directly to payroll and billing, cutting down on data entry headaches.

How to Calculate Labor Cost Per Job with Limited Payroll Data

If your payroll system does not break down hours by job, you can still get close with manual calculations:

Gather total hours worked per employee for the week
Use your daily job-level time logs to estimate hours per job
Multiply job hours by the employee’s fully loaded hourly rate (wages + taxes + benefits)
Add overtime premiums where applicable

For example, if Joe worked 40 hours total, and your logs show 25 hours on Job A and 15 on Job B, apply his hourly cost accordingly. This gives you a rough but actionable labor cost per job.

If you want to tighten this up, consider moving to a time tracking system that integrates with payroll to reduce manual work and errors. If you are also cleaning up your payroll process, our guide to the best payroll setup for 10 to 50 person construction crews explains how to structure things so job costing is much easier.

How to Include Overtime in Your Job Labor Costs

Overtime is where a lot of small crews lose money without realizing it. The rate looks right on paper, but the extra half-time on overtime hours is not assigned to the right job.

Here is a simple way to handle it:

Track regular and overtime hours by job
- Your time logs should show total hours per job per person.
- At the end of the week, your payroll system tells you how many of those hours are overtime for each employee.
Split the week’s hours into regular and overtime by job
- If Maria worked 48 hours total, and your logs show:
  - 30 hours on Job A
  - 18 hours on Job B
- She has 8 overtime hours. You can allocate those 8 hours across Job A and Job B in proportion to the hours worked.
  - Job A: 30 / 48 of her time, so about 5 overtime hours
  - Job B: 18 / 48 of her time, so about 3 overtime hours
Apply the correct cost
- Regular hours: use her regular loaded rate (wage + taxes + benefits).
- Overtime hours: use 1.5 times her wage, then add taxes and benefits on top of that.
Assign the extra cost to the jobs that caused the overtime
- In the example above, Job A gets 5 overtime hours at the higher rate, Job B gets 3.
- This shows you which jobs are pushing people into overtime so you can adjust staffing or scheduling.

If you are not sure you are handling overtime correctly, it is worth reviewing your process against our guide to common overtime mistakes for small crews.

What Is Job Costing Labor in a Small Construction Company?

Job costing labor means tracking exactly how much labor time and cost goes into each job your crew works on. It is not just total hours worked, but breaking those hours down by job, including drive time, breaks, and overtime. For small crews, this level of detail helps you see which jobs are profitable and which ones are draining your labor budget.

Think of it like this: if your crew spends 40 hours in a week but 6 of those are driving between jobs or waiting on materials, you want to know which job those hours belong to. Without this, your job cost reports will be off, and you might underbid or lose money without realizing it.

What Labor Costs Should Be Included in Construction Job Costing?

When you say “labor cost” for a job, it should include more than just the base hourly wage. For a small construction crew, you will usually want to include:

Base hourly wages
Employer payroll taxes (Social Security, Medicare, state)
Employer-paid benefits (health, retirement match, vacation or holiday pay)
Overtime premiums
Paid travel time and drive time between jobs
Paid training time that is specific to that job (for example, safety orientation on a particular site)

Some owners also include a small percentage for indirect labor, like time your foreman spends on paperwork or calls related to that job. The tradeoff is accuracy versus effort. If you are just getting started, focus on:

Wages
Payroll taxes
Overtime premiums
Paid drive time

Once that is running smoothly, you can decide if it is worth layering in benefits and indirect labor to sharpen your numbers.

Can QuickBooks Track Labor Costs by Job for Small Construction Companies?

QuickBooks can track labor costs by job if you set it up right, but it is not always straightforward for small crews. You need to use QuickBooks time tracking features or integrate with a time tracking app that feeds job-level hours into QuickBooks.

The challenge is getting your crew’s time data into QuickBooks accurately. If you are still relying on paper timesheets or inconsistent logs, QuickBooks will not magically fix that. It works best when paired with a solid time tracking system that assigns hours to jobs before syncing.

If you are considering QuickBooks, think about whether you want to add a time tracking app or use QuickBooks Time (formerly TSheets). Otherwise, manual entry can be a headache and prone to errors.

Do You Need Job Costing Software for a 5 to 20 Person Crew?

You do not have to buy job costing software to get useful labor numbers, especially if you are running one or two small crews. A simple system can work:

Paper or spreadsheet time logs with job codes
Weekly manual calculations of labor cost by job
A basic summary sheet that shows hours and cost per job

This is usually enough if:

You have fewer than 10 active jobs at a time
One person in the office can spend an hour or two a week on the math
Your foremen are consistent with time tracking

Software starts to make sense when:

Crews are bouncing between many jobs in a week
You are losing time chasing missing or messy timesheets
You are doing a lot of change orders or T&M work and need backup for billing
You need certified payroll or more complex reporting

A good middle ground is to start with a simple app that handles time tracking by job, then let your bookkeeper or an AI accountant like Adam from Tyms turn that data into clean job cost reports without you hiring a full-time office person.

Do I Need Job Costing If I Only Run One or Two Small Crews?

Many owners with just one or two crews assume job costing is only for bigger contractors. The truth is, it depends on how many jobs you juggle and how tight your margins are.

Job costing is worth it even with one or two crews if:

You work multiple jobs in the same week
You are not sure which jobs are actually making money
You see overtime often but cannot tell which job is causing it
You are guessing on bids instead of using past crew performance

Where you can keep it lighter:

If your crew works one job at a time, start and finish before moving on, you can track labor at the job level with a simple weekly summary.
If you mostly do repeat, flat-rate work (for example, the same lawn route every week), you might track labor by route or customer group instead of every single visit.

A simple rule: if a 5 to 10 percent swing in labor cost can make or break your profit on a job, you need at least basic job costing, even with a small crew.

Real Example: Small Roofing Crew Gets Control Over Labor Costs

A 9-person roofing crew was struggling with unpredictable labor costs. Foremen tracked hours on paper but did not separate drive time or breaks. The owner switched to a simple app that let foremen clock in and out by job on their phones. Drive time was tracked separately.

Within two weeks, they saw that drive time was eating up 15% of billable hours. They reorganized jobs geographically and scheduled supply runs more efficiently. Labor costs dropped 8% in the first month, and bids became more accurate.

If you want to try something like this, TimeCamp is a solid choice for small crews needing job-costed time tracking tied to payroll and billing.

Checklist: What to Do This Week to Start Job Costing Labor

Decide who will be responsible for daily job-level time tracking (usually foremen)
Choose your tracking method: paper form, spreadsheet, or simple app
Create or download a standardized time tracking sheet with columns for job, start/end times, and notes
Train your foremen on what to track (work hours, drive time, breaks)
Set a routine to collect and review time logs weekly
Calculate labor cost by job using hourly rates and hours tracked
Hold a weekly review meeting to discuss labor cost insights and adjustments

Common questions from owners

Do I really need job costing if I only run one or two small crews?
If your crew works one job at a time from start to finish, you can keep it simple, but you still need to know total labor hours and cost for each job. As soon as you are bouncing between jobs in the same week, or overtime starts showing up, basic job costing becomes important. You do not need fancy software, but you do need clear time logs by job so you are not guessing on profit.

How do I include overtime in my job labor costs without overcomplicating things?
Use your weekly payroll report to see total overtime hours per employee, then allocate those overtime hours across the jobs they worked in proportion to their hours on each job. Apply the higher overtime rate (1.5 times wage, plus taxes and benefits) to those hours on each job. This keeps the math simple but still assigns the extra cost to the jobs that caused the overtime.

What labor costs should I include when I price a job?
At a minimum, include base wages, employer payroll taxes, and expected overtime premiums. If you offer benefits, add a rough hourly amount for those too. For example, if health insurance costs you $400 a month per employee and they work about 160 hours, that is roughly $2.50 per hour you should build into your labor rate.

Can I calculate labor cost per job if my payroll data is not detailed?
Yes. Use total hours from payroll, then use your daily job logs to split those hours across jobs. Multiply the hours per job by each worker’s fully loaded hourly rate. It will not be perfect, but it is far better than guessing and will quickly show which jobs are tight and which have room.

How often should small construction crews update labor cost tracking?
Daily time tracking with a weekly review works best. Foremen or crew leads should record job-level hours every day so details are not forgotten. Then once a week, you or your office person turn those hours into labor cost by job and look for problems before the job is finished.

Do I need job costing software for a 5 to 20 person crew?
Not always. If you have a handful of jobs and reliable foremen, a spreadsheet and consistent time logs can work fine. Software becomes worth it when you are losing hours chasing down timesheets, you need backup for T&M billing or certified payroll, or you are running multiple crews across many jobs and cannot keep up with manual tracking.

Can QuickBooks track labor costs by job for my small company?
Yes, as long as you feed it clean job-level time data. That usually means using QuickBooks Time or another app where your crew clocks in and out by job. If the time going in is messy or incomplete, the job cost reports coming out of QuickBooks will not be reliable.

Wrapping Up

Small crews do not need complicated systems to get a grip on labor costs by job. The key moves are clear responsibility, simple consistent tracking, and weekly review. Start with a straightforward time log your foremen can manage without hassle. Then use that data to spot waste and improve bids.

Next step: Pick your tracking method and get your foremen logging job-level hours this week. You will quickly see where your labor dollars go and gain control over your crew’s profitability.

For more on setting up payroll and time tracking for crews, check out our guide to the best payroll setup for 10 to 50 person construction crews and our payroll checklist for each pay period so your job costing numbers stay accurate once you run payroll.