How do I manage per diem reimbursements for construction crews on travel jobs?

The Current Problem

Construction crews on travel jobs often struggle with per diem reimbursements. Policies vary by project and location, making it challenging to ensure compliance. Handoffs between the field, accounting, and payroll can be error-prone, leading to delayed or incorrect payments.

• Inconsistent per diem policies across job sites
• Manual tracking and approval processes
• Miscommunication between field crews and accounting
• Delayed reimbursements causing crew frustration

The Recommended Workflow

1. Establish a clear per diem reimbursement policy for all job sites, including rates, eligible expenses, and approval processes.
2. Require field crews to submit per diem requests through a mobile app or web portal, capturing necessary details like job codes, receipts, and approvals.
3. Automate the approval workflow, routing requests to the appropriate supervisors based on cost codes and budget thresholds.
4. Integrate the per diem system with your construction ERP, synchronizing approved reimbursements to the general ledger and payroll.
5. Provide field crews with real-time visibility into the status of their requests through the mobile app.
6. Analyze per diem data to identify opportunities for cost savings, such as negotiating better hotel rates or streamlining policies.
7. Regularly review and update the per diem policy to ensure it remains competitive and compliant with tax regulations.
8. Train field crews and accounting staff on the new per diem process to ensure smooth adoption and consistent implementation.

Tips for Construction Teams

• Leverage mobile technology to make per diem tracking and approval easy for field crews
• Integrate per diem data with your construction ERP to automate accounting and payroll tasks
• Enforce per diem policies consistently across all job sites to avoid confusion and resentment
• Empower field supervisors to approve per diem requests within their budgets to speed up the process
• Provide real-time visibility into per diem status to improve transparency and communication
• Consider using a construction-specific software solution like Vergo to streamline per diem management

How Vergo Helps

Vergo is a card-agnostic expense management platform built for construction. Connect any corporate or project credit card and get full visibility and control over field spending.

• Job-cost coding at the point of capture — field teams assign job number, cost code, and cost type from their mobile device before the receipt leaves the job site.
• Per-job spend controls — set card limits by project, cost code, or cardholder so spending stays within approved budgets.
• Mobile receipt capture — superintendents and PMs photograph receipts on-site with automatic data extraction.
• Role-based approval workflows — route expenses through project managers, job-level approvers, and controllers based on your org structure.
• Vergo integrates natively with major construction ERPs, syncing coded expenses directly into job cost and general ledger without manual re-entry.

Related Questions

• What is construction reimbursement management and why does it need its own workflow?
• What is the real cost of managing reimbursements manually in construction?
• How do I choose reimbursement software for a construction company?
• What is the best reimbursements software for landscape companies using QuickBooks?