7 Smart Strategies for Managing a Contingent Workforce in Construction
As the construction industry continues to evolve, so does the structure of its workforce. Today, labor shortages, project-based contracts, and economic uncertainty have led construction firms to lean heavily on contingent workers, skilled tradespeople, equipment operators, project consultants, and temporary labor. Contingent workers now represent over 35% of the U.S. workforce, and this number is growing rapidly, especially in project-driven industries such as construction.
To build smarter, faster, and more efficiently, contractors must rethink how they manage this workforce segment. Without the right structure, contingent labor can introduce delays, safety risks, and compliance issues. But with a smart strategy, it becomes a powerful tool for flexibility and growth. Below are seven data-backed strategies tailored to construction companies managing a variable workforce across job sites and regions.
1. Use a Centralized Labor Management Platform to Control Costs on Job Sites
Managing hundreds of workers across multiple job sites many of whom are contracted through third-party vendors demands centralization. A robust labor management platform or Vendor Management System (VMS) tailored for construction allows project managers, GCs, and HR teams to track hours, verify certifications, manage safety documents, and control spend in real time.
Stat: Construction firms using centralized workforce platforms report a 15–20% reduction in contingent labor costs, thanks to streamlined processes and better visibility (Everest Group).
2. Set Clear Roles for Temporary Workers to Improve Safety and Efficiency
From electricians to steelworkers, everyone on-site must know their scope, schedule, and deliverables. Lack of clarity slows down builds and increases the risk of injury. Every contingent worker should receive a detailed scope of work and a task-specific safety orientation.
Stat: Workers who clearly understand their job expectations are 27% more likely to be engaged and productive, leading to fewer delays and rework (Gallup).
3. Streamline Onboarding to Get Workers Site-Ready Faster
Time is construction money. A lengthy or inconsistent onboarding process eats into productivity and delays project milestones. Standardizing onboarding including digital collection of I-9s, OSHA cards, site access credentials, and PPE training gets boots on the ground faster.
Stat: Companies with streamlined onboarding processes report up to a 54% increase in productivity during the first 30 days of contingent employment (Glassdoor).
4. Stay Compliant with Contractor Classification and OSHA Regulations
Construction is one of the most heavily regulated industries in terms of labor. Worker misclassification and OSHA non-compliance can lead to lawsuits, fines, and project shutdowns. A compliance-first labor strategy includes routine audits, documented subcontractor agreements, and tracking local/state licensing.
Stat: Between 2018 and 2022, U.S. businesses paid over $6 billion in fines related to contractor misclassification and labor violations (National Employment Law Project).
5. Improve Contractor Retention Through Communication and Accountability
Temporary construction workers often rotate between firms. Regular check-ins, safety huddles, and feedback loops make them feel part of the team and encourage return engagements. Providing performance feedback and recognizing quality work keeps job sites productive and reduces turnover.
Stat: Construction teams that keep lines of communication open with contingent workers experience a 26% higher project success rate (Deloitte).
6. Build a Scalable Talent Bench for Seasonal and Project-Based Work
Construction is cyclical, with workforce needs peaking during warm months or large-scale commercial builds. Planning with a vetted bench of licensed subcontractors and skilled temp labor gives companies the agility to scale up or down without compromising project timelines.
Stat: 65% of construction businesses that used scalable labor strategies reported faster recovery post-COVID and better alignment with fluctuating demand (SIA).
7. Leverage Labor Analytics to Optimize Jobsite Performance and Cost
Using workforce analytics, construction companies can identify which trades are delivering the best ROI, which subs are most compliant, and where inefficiencies lie. This data drives better bidding, stronger partnerships, and continuous improvement across jobs.
Stat: Companies that leverage labor analytics make faster, more accurate staffing decisions up to 5x faster, according to PwC.
Why Construction Firms Need a Smarter Approach to Contingent Labor
In the construction industry, every hour counts. Managing your contingent workforce with intention through strong systems, compliance checks, and performance monitoring turns labor from a liability into a competitive advantage. Whether you’re a GC building high-rise or a subcontractor scaling for solar farms, these seven strategies will help you control costs, stay compliant, and keep your builds on schedule.
As contingent labor becomes more central to construction success, investing in better labor planning isn’t just smart, it’s essential.