At a large NSW open cut mine, contractor labour costs were quietly escalating due to inaccurate timesheet claims. Small discrepancies, often just minutes per shift, were compounding into millions of dollars in annual losses.
By digitising contractor sign-on, timesheet submission, and supervisor approval, the operation shifted control back to the frontline. The result was sharper visibility, faster decision-making, and an estimated AUD $6 million in annual savings without impacting safety or productivity.
Cost Pressure at Scale
Operating in a highly competitive environment, the mine needed tighter control over rising labour costs.
While no single issue stood out, contractor workforce inefficiencies, multiplied across scale, were creating significant financial drag.
When Small Gaps Become Big Losses
Timesheet discrepancies were common:
- Contractors claiming more time than job duration or site presence supported
- Legitimate variations (e.g. site entry delays, tooling collection) mixed with unsupported claims
- Supervisors lacking time and access to verify claims properly
- Approvals often happening during shift handovers when pressure is highest
The impact: An average overclaim of just 20 minutes per shift equated to ~AUD $9 million annually in one department alone.
Back-office reconciliation was:
- Reactive
- Time-consuming
- Often leading to disputes after invoices were already submitted
What Needed to Change
The operation set out to:
- Reduce contractor labour cost leakage
- Enable fast, confident frontline approvals
- Cut administrative overhead
- Eliminate invoice disputes through reliable data
- Maintain safety and productivity
- The Shift: Moving Control to the Frontline
Rather than tightening controls after the fact, the solution focused on real-time visibility and decision-making where the work happens.
Key components of the solution included:
- Frontline Sign-On/Sign-Off
Contractors log on and off at kiosks at the start and end of each job or shift - Digital Timesheet Submission
Timesheets are completed and submitted immediately via kiosk - Automated Supervisor Workflow
Timesheets flow directly to supervisors for approval via desktop, tablet, or mobile - Real-Time Discrepancy Detection
The system flags differences between claimed time, site entry/exit records and job allocation time - Immediate Resolution at Source
Supervisors address discrepancies on the spot while context is still clear - Supplier Transparency
Contractors access approved time records directly for invoicing - Accurate Invoice Verification
All invoices are backed by approved, traceable data
The Results: Control, Clarity, and Real Savings
The impact was immediate and measurable:
- ~AUD $6 million annual savings in contractor labour
- Frontline control replaced delayed back-office corrections
- Major reduction in admin workload across all stakeholders
- Faster, cleaner invoice verification
- Fewer disputes with contractors
- Supervisors freed up to focus on safety, coordination, and productivity
Why It Worked
This was about better timing and better information.
- Decisions moved closer to the work
- Supervisors had the right data at the right moment
- Discrepancies were handled before they became disputes
Key Takeaways
- Small time overclaims scale into major financial losses
- Manual approval processes fail without accessible verification data
- Frontline control is far more effective than retrospective fixes
- Digitisation improves both cost control and efficiency
- Transparent, traceable data strengthens supplier relationships
This case highlights a common issue across contractor-heavy industries: cost leakage actually comes from small, repeated gaps.
By digitising contractor time capture and approval, this operation turned a fragmented, reactive process into a controlled, efficient, and transparent system.