🇦🇺Australia

Unbilled Labour Hours & Time Theft

4 verified sources

Definition

Construction sites using spreadsheet-based timesheets experience systematic revenue loss from unbilled hours. Manual entry allows time padding, missed clock-outs, and off-the-books tasks that are never invoiced to clients. Even a 5% loss across a 20-person crew represents significant revenue leakage.

Key Findings

  • Financial Impact: AUD 2,000–6,000 per employee annually; 5–15% of billable labour hours lost to time theft or underreporting
  • Frequency: Continuous (occurs on every project until digital verification is implemented)
  • Root Cause: No GPS verification, no geofencing, no biometric controls; manual approval workflows create gaps; offline timesheets are never synced

Why This Matters

The Pitch: Australian building equipment contractors waste an estimated 5–15% of billable labour hours annually (~AUD 2,000–6,000 per employee/year) due to time theft, underreporting, and missed invoicing. Digital GPS-verified time tracking eliminates this gap and recovers lost revenue immediately.

Affected Stakeholders

Site foremen, Construction labourers, Field supervisors, Project managers (unable to audit)

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Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

Manual Payroll Processing & Reconciliation Delays

AUD 3,000–8,000 per month (payroll admin overhead); 20–40 hours per month of manual rework

Superannuation Guarantee Shortfall & SG Charge

AUD 5,000–15,000 per annum in SGC exposure; penalty is 200% of shortfall plus 10% interest

GST/BAS & STP Lodgement Errors & ATO Penalties

AUD 2,000–6,000 per annum in BAS correction costs and interest; STP Phase 2 penalty up to AUD 13,500 per year for non-compliance

Manual Timesheet Approval Bottlenecks & Payroll Delays

AUD 8,000–15,000 per annum in lost payroll productivity; 2–4 working days delayed per payroll cycle

Unbilled Change Order Work Due to Incomplete Documentation

Estimated 2-5% of contract value per change order; typical commercial fit-out project: AUD $50,000-$150,000 in unbilled work per year

Delayed Change Order Approval and Payment Hold-Up

15-30 day payment delay per change order; interest cost @ 6% p.a. on average AUD $300,000 WIP = ~AUD $5,000/month opportunity cost for mid-sized contractor

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