Buddy Punching and Overreported Labor Hours
Definition
Field workers engage in buddy punching, where one employee clocks in for another, or inflate hours worked, leading to inaccurate labor hour tracking. This results in overbilling clients or excessive payroll costs in job costing without actual work performed. Building equipment contractors suffer from unverified time entries due to manual or poorly secured systems.
Key Findings
- Financial Impact: $4285 per worker per year
- Frequency: Daily
- Root Cause: Lack of facial verification, geofencing, or automated identity checks in time tracking systems allows fraudulent clock-ins.
Why This Matters
This pain point represents a significant opportunity for B2B solutions targeting Building Equipment Contractors.
Affected Stakeholders
field workers, foremen, payroll managers
Deep Analysis (Premium)
Financial Impact
$4285 per worker per year across crews. • $4285 per worker per year affecting tight project margins. • $4285 per worker per year in bloated service contracts.
Current Workarounds
Basic clock systems with shared cards. • Basic mobile apps with shared logins or memory-based reporting. • Clock cards swiped by colleagues.
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Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Evidence Sources:
Related Business Risks
Overreported Hours Inflating Labor Costs
Delayed Supplier Reimbursements from Warranty Disputes
Excessive Warranty Rework and Processing Costs
Downtime Losses from Delayed Warranty Claims
Equipment Idle Time from Warranty Bottlenecks
Last‑minute truck/warehouse inventory purchases at retail prices
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