Is your construction project paying employees correctly?

Many construction projects lose money when construction companies pay their workers more than they are due. In other cases workers are paid less than they should and they become demoralised or demotivated, which impacts their productivity and can even lead to industrial action including work stoppages.

Project Managers must read and understand the industrial relations agreements governing their construction project. These may include the prevailing labour legislation and project, union and company agreements. Employees’ wages and conditions must be in accordance with the relevant agreements which often differ between projects.

Many construction projects incur additional costs because they don’t manage the hours and pay of personnel correctly which could be because:

1. the hours personnel work aren’t recorded correctly

2. people aren’t paid the correct overtime rate or the rate is applied incorrectly

3. people aren’t booked absent when they’re not at work

4. leave forms aren’t submitted (including annual and sick leave)

5. people are paid the incorrect rates

6. deductions for tax aren’t applied correctly and in accordance with the latest legislation

7. the incorrect deductions are made from their pay

8. people are paid allowances they aren’t entitled to

9. rates of pay or allowances aren’t adjusted when personnel are transferred to another project

10. people deliberately falsify their attendance

11. errors are made when completing time sheets

12. people leave work before their shift is complete, yet they are paid the full shift

(From the book ‘Building a Successful Construction Company: The Practical Guide’ by Paul Netscher. Available from Amazon and other retail outlets)