Unbilled Labour & Overhead Costs in Manual Job Costing
Definition
Manual job costing systems fail to capture and invoice all labour-related costs. The standard job costing formula shown in search results (Raw Materials + Other Direct Costs + Labour + Overheads = Total Cost) requires granular tracking of employee hours, contractor invoices, and site-specific overhead allocation. When done manually, 3-7% of billable labour (e.g., site supervision, material handling, vehicle costs) goes uninvoiced due to missing time sheets, contractor invoices not matched to projects, or overhead allocation errors. For wholesale distributors, this translates to unrecovered site labour and delivery coordination costs.
Key Findings
- Financial Impact: 3-7% of labour costs uninvoiced annually; for a firm with AUD $2M annual labour cost allocation, this represents AUD $60,000 to $140,000 in lost revenue per year
- Frequency: Monthly to project-end (every invoice cycle)
- Root Cause: Manual tracking of labour time sheets, contractor invoices, and overhead allocations; incomplete matching of labour costs to job accounts; lack of automated reconciliation between payroll/timesheets and job costing records
Why This Matters
The Pitch: Australian wholesale building materials distributors leak AUD $50,000-$200,000 annually through unbilled labour and indirect costs. Automated job costing with labour tracking integration ensures 100% cost capture and invoicing.
Affected Stakeholders
Site Managers, Payroll/HR, Project Accountants, Invoicing/AR Staff
Deep Analysis (Premium)
Financial Impact
Financial data and detailed analysis available with full access. Unlock to see exact figures, evidence sources, and actionable insights.
Current Workarounds
Financial data and detailed analysis available with full access. Unlock to see exact figures, evidence sources, and actionable insights.
Get Solutions for This Problem
Full report with actionable solutions
- Solutions for this specific pain
- Solutions for all 15 industry pains
- Where to find first clients
- Pricing & launch costs
Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Related Business Risks
Defective Goods Claims & Liability Exposure
Statutory Liability & Unfair Contract Terms Risk
Payment Release Delays Due to Incomplete Lien Waiver Documentation
Legal Exposure & Indemnity Costs from Non-Compliant or Expired Lien Waivers
Manual Bottleneck in Multi-Tier Lien Waiver & Preliminary Notice Collection
Loss of Mechanic's Lien Rights Due to Improper Waiver Timing or Execution
Request Deep Analysis
🇦🇺 Be first to access this market's intelligence