Before You Automate, Get Your Data Right

Why accurate time tracking and payroll data will be the real competitive advantage in 2026.
Dec. 5, 2025
4 min read

Key Highlights

  • Accurate data is the cornerstone for effective AI implementation in construction, enabling automation and smarter decision-making

  • Poor data quality can cost the industry over $1.8 trillion globally, mainly due to rework and inefficiencies

  • Field-level accuracy in time tracking and data capture directly impacts downstream processes like payroll, forecasting, and compliance

  • The most competitive contractors in 2026 will prioritize building a reliable data foundation before adopting new automation tools

Across the construction industry, conversations about AI are everywhere. Contractors are exploring ways to use AI in all aspects of their business—from streamlining processes to predictive reporting for proactive decisions. But before contractors start taking advantage of AI, there’s a more fundamental question every contractor should ask: how accurate is our data?

In 2025, the most successful contractors won’t just be the ones with the newest tools. They’ll be the ones with the cleanest, most reliable data.

The Foundation Problem

Every project relies on data. The hours worked, the crews deployed, the tasks completed, productivity, and the costs accrued. That data drives everything from payroll and budgets to project forecasting. Yet, for many contractors, it still begins with inconsistent inputs from the field: handwritten notes, spreadsheets, or outdated systems that leave room for inaccurate data that you can’t trust to help drive future business decisions.

According to McKinsey & Company, construction is still one of the least digitized industries, a reality that costs contractors as much as 20% in lost productivity every year. Similarly, research from Autodesk and FMI found that bad data cost the global construction industry over $1.8 trillion in 2020, driven by rework, inefficiency, and inaccurate reporting.

Those numbers aren’t abstract. They represent misreported hours, outdated cost codes, and decisions made on information that simply isn’t right.

Accuracy Comes Before AI

AI can be transformative, but it’s not magic—even though sometimes it feels like it is. It relies on data integrity. Knowing that every time entry, cost code, and approval reflects what actually happened in the field.

Before any contractor can confidently automate time tracking, payroll, or compliance, they have to ensure that the data feeding those systems is clean, complete, and verified. Otherwise, automation simply moves bad information faster.

Accurate field data unlocks real automation:

  • Payroll runs on time and without rework. Verified hours flow straight into processing.

  • Compliance reporting becomes effortless. Certified payroll and wage reports generated instantly.

  • Forecasting improves. Trends in labor productivity and manpower become visible, allowing better scheduling and estimating.

It’s not automation that creates accuracy—it’s accuracy that makes automation work.

The Competitive Edge in 2025

As the labor market tightens and projects grow more complex, accuracy itself has become a competitive differentiator. Two contractors might have similar automation tools, but the one with cleaner, more reliable data will operate faster, bid smarter, and make decisions with confidence.

McKinsey found that companies adopting automation and digital workflows can improve productivity by up to 50%, but only when the data underpinning those systems is high-quality and consistent.

For many contractors, that begins on the jobsite, where data is captured. When time tracking is precise, verified, and connected, everything downstream becomes easier. Solutions that prioritize field-level accuracy help contractors eliminate the guesswork before automation ever starts.

Building the Right Foundation

There’s a saying in construction: the structure is only as strong as its foundation. The same holds true for AI. If your field data isn’t accurate, every process built on top of it—from payroll to forecasting—will eventually crack.

That’s why the next wave of construction technology isn’t just about more automation. It’s about building on accuracy, capturing clean, verified time data at the source and using it to support smarter, more reliable automation across every project.

That principle is at the core of SmartBarrel’s approach. Helping contractors ensure the data coming from the field is accurate and verified before it powers automation, compliance, or forecasting. It’s what we call accuracy you can build on.

Because in 2025, the contractors who win won't be the ones who move the fastest—they will be the ones who built a solid foundation of data they can trust.

About the Author

Ana Uribe

Ana Uribe is a Sr. Marketing Manager for SmartBarrel, a construction-focused biometric time-tracking platform. 

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