Mechanical Contractor Reduces Weekly Payroll Processing Time From 40 to 12 Hours and Saves $50,000 Annually
Intech Mechanical, LLC is a minority-owned, full service mechanical contractor based in Roseville, CA. Established in 1993, Intech is licensed in both California and Nevada to provide a full range of HVAC, plumbing, process piping, and maintenance services. With its ability to offer design assist, design build, plan spec, and constructability review expertise, the company’s 40 office workers and 100 field workers enjoy a presence in a wide variety of market sectors. Some of these include healthcare, education, laboratories, office buildings, energy and data centers, manufacturing facilities, government compounds, and hospitality/senior housing. Customer projects include commercial and industrial HVAC and plumbing, preventative service and maintenance, process piping, central plant installations, tenant improvements, automated building controls, duct fabrication, hydronic piping and more.
Intech’s manual time reporting system was bogged down by human errors, paperwork delays, and missing information. Some of the most frustrating problems, according to Dena Randall, Intech’s Controller, were field time entries charged to closed jobs and non-existent change orders. “We consistently had to track down the project managers and foremen to get accurate information before we could move forward.” In their manual process, time cards were prepared on Excel spreadsheets and emailed to payroll. Cards were reviewed, rates were written on the time cards and costs were calculated by hand before manual entry into the accounting system. As Randall says, “It was a very cumbersome process.” And clearly, it wasn’t working.
A company that prides itself on remaining current in the latest construction technology requirements and advancements, Intech needed a stream-lined time tracking system to facilitate communications between office and field workers. They had to spend less time on paperwork and more time working toward inventive, cost effective, customer solutions. Changing to an automated system seemed daunting, but they had no choice. Intech needed something quick to implement and easy to use.
After narrowing their search to mJobTime and one other prominent time reporting system, Intech settled on mJobTime because its “Web-based features and functionality were more friendly and easier to use.” Randall stated, “Our payroll manager had done a lot of research on time reporting systems in a previous job. She determined that mJobTime was the best fit.”
Intech uses mJobTime’s Labor Manager and Budget Manager modules to gather time data, export it, and manipulate it in Excel. From Excel they export it to their American Contractor accounting system.
No longer bogged down with paperwork, Intech’s field foremen enjoy the convenience of using tablets, laptops and smart phones to enter time. Using mJobTime’s web interface, foremen easily clock their field workers in and out of the system. At the end of the week, employees use mJobTime apps to review their time with supervisors and sign off. The time entries are then available for project managers to approve before being sent to the company’s payroll manager for a pre-audit check. The payroll manager scans system reports for missing time cards and overtime entries, exports the data into Excel for final audit and double-check, and then uploads an ASCII file to their accounting system.
mJobTime’s system implementation went well for Intech. Their controller and payroll manager spent two days with mJobTime implementation specialists configuring and training on the system. Randall gave mJobTime’s trainer “high marks for knowledge and expertise.” Over a 3-month period, office personnel were trained on live test cases and training videos and the system was rolled out gradually to field crews.
mJobTime allows Intech to save about $50,000 a year, or about 35% of their payroll costs. “The manual process used to take two people two-and-a-half days to process payroll, or just over 40 hours,” Randall explained. “Now it takes one person one-and-a-half days, or about 12 hours.” Project managers enjoy mJobTime’s ease of use and transparency, which allows them to quickly see time charged to their particular jobs. Randall attests that, besides the obvious time and cost savings benefits of mJobTime, the “greatest benefit is the accuracy of the information we receive. With mJobTime, our personnel can only use valid open jobs and valid change orders or phase codes thus eliminating almost all human error.”
Intech did their homework and determined mJobTime would best meet their time tracking needs. By educating themselves up front on its powerful features and usability, they assured themselves a successful venture into automated time tracking. No longer needing to chase down foremen and project managers to correct job errors, their office staff now spends less time processing payrolls. Project managers are quickly and easily monitoring their jobs, and job site workers are continuing to produce the high quality products and services for which Intech is known.