Labour is on site and nobody records what it did
Hours are paid, allocation is guessed, and any disruption claim later has nothing underneath it.
Updated: . By Jack Butler-Kettle, Construction Claims Consultant.
What's happening?
Your timesheets prove the hours were paid. Nothing proves what those hours were spent on. Productivity drops when the gang is moved, the area isn't ready or the work goes out of sequence. The cost lands in the labour account and vanishes there. In the records your business keeps, a paid hour and a productive hour look the same.
Labour allocation fixes that. It means putting each person's hours against an activity and an area, every day. The gap between planned and actual effort can then be measured, not just asserted. A claim backed by allocation sheets traces to activities, hours and notes made at the time.
Without them, the lost hours cannot be separated from the paid ones. More of the claim then rests on rebuilding events later, which is much harder to prove.
The solution
Fill in a labour allocation sheet every day. Put each person's hours against the activity and area they actually worked, from one fixed list of activities. Record every move between areas when it happens. The sheets then tie back to payroll and progress records, so lost hours can be measured and priced instead of guessed months later.
Delay & Disruption Loss Prevention builds the sheet into your wages routine, so your team keeps filling it in. Extra hours on their own still do not prove what caused them. That stays a separate question.
Example
Illustrative example. The scenario and figures are invented.
The facts
A drylining subcontractor pays 18 operatives £14,000 a week. Its timesheets record hours by person and nothing else. A labour allocation sheet starts on a Monday, with one list of 22 activities by floor and element.
What happens
- Each operative's hours go on the sheet daily, against the activity and area worked. Every move between floors is recorded.
- After 6 weeks the sheets show the second-floor partitions took 640 hours, against the 420 the tender allowed. The third floor took 410 against the same 420.
- The second-floor difference is not a guess. The sheets record three moves off the floor to let the mechanical first fix through, the returns, and the hours spent getting going again.
- The 640 hours match the payroll for the same weeks. The progress records show the second floor finishing 3 weeks later than the third.
- The 220 extra hours are priced at the recorded labour rate: £5,700.
- The figure goes into the account with the sheets, the diary entries for the three moves and the progress records. It says nothing about delay or who was responsible. Whether the money is owed is left to the subcontract.
Hours against the tender allowance
| Activity | Hours recorded | Hours allowed |
|---|---|---|
| Second-floor partitions | 640 | 420 |
| Third-floor partitions | 410 | 420 |
The outcome
The main contractor agrees £3,800 for the two moves it accepts it directed. It disputes the third.