In industries where every hour counts, timecard scandals aren’t just payroll problems—they’re risk management nightmares. The recent case involving Consolidated Nuclear Security (CNS), operator of the Pantex Plant in Amarillo, Texas, is a stark reminder.
In April 2024, CNS agreed to pay $18.4 million to settle allegations of timecard fraud. Over six years, technicians reportedly logged hours they didn’t work, billing those to the National Nuclear Security Administration. If this can happen at a nuclear weapons facility—where oversight is intense—imagine the vulnerabilities on a typical construction site relying on trust-based timecards and manual systems.
CNS managed the Pantex plant and, between 2014 and 2020, some employees submitted false hours. The government paid out on those doctored timesheets, making this a False Claims Act issue. CNS discovered the issue while upgrading payroll systems, reported it, and fired those involved. Still, the fallout was severe: financial penalties, reputational damage, and operational disruption at a highly sensitive site.
If timecard fraud can slip through at a nuclear facility, it’s a warning for every construction business. Construction projects often juggle multiple sites, subcontractors, and complex pay rules, yet many still rely on paper timecards, badge swipes, or spreadsheets. These systems run on an honor code, leaving millions of dollars exposed to mistakes and, sometimes, outright fraud.
Swipe badges and proximity cards may seem secure, but they’re easy to exploit. Buddy punching, badge sharing, and ghost workers are common issues. Workers can badge in for each other, or a single badge might be used by multiple people. Sometimes, employees badge in at the gate but aren’t actually working yet. Lost or borrowed badges, manual overrides, and offline systems create even more gaps. Ultimately, badges show that a credential was used—they don’t prove the right person worked the hours.
Badges answer the question: “Did someone use a credential at this reader at this time?” But, they do not reliably answer: “Did this specific person actually work these hours at this location?” For owners, GCs, and large subs, that gap is where millions of dollars in loss, disputes, and compliance risk live.
Loose timekeeping creates:
Owners may challenge hours billed versus actual progress, and weak evidence can make these disputes costly. Non-compliant records can trigger audits and penalties. Inaccurate data also affects safety, as you may not know who’s really on site in an emergency. The Pantex case proves that authorities are willing to pursue and penalize fraudulent timekeeping, and construction is moving toward similar scrutiny, especially on large or public projects.
Modern timekeeping needs more than hours tracked—it requires verification and auditability. Biometrics, especially facial recognition tied to location and job, closes the loopholes. You verify the person, not just a badge. Geo-fenced clocks ensure that “on the clock” means “at the job.” Every punch is recorded with a biometric event, timestamp, and location, creating a defensible audit trail. For adoption, the technology must be field-friendly and work with the devices crews already use.
MobiClocks is built for commercial construction, eliminating the need for badges and confirming the actual worker is on site. The platform is designed for real job-site conditions, making it easy for foremen, crews, and subs to use. Time records are clear and defensible, standing up to scrutiny from owners, auditors, and regulators.
Built by construction professionals, the workflows reflect the realities of the field, supporting multiple trades, rotating crews, and complex pay rules. The result is more than fraud prevention—it’s margin protection, fewer disputes, and greater trust between contractors and owners.
You shouldn’t look at the Pantex story and think, “That’s a government problem. It doesn’t apply to construction.” You should look at the Pantex story as just a government problem. Every contractor should approach it as a wake-up call.
It’s time to consider biometric, digital solutions if your teams have a heavy reliance on manual systems or badges. Because timekeeping is about more than payroll. It’s about compliance, risk, and trust. If a nuclear facility can get burned by bad timecards, the construction industry can’t afford to be complacent.
If you’re ready to see how construction-first timekeeping can reduce risk and protect your margins, let’s talk about how other contractors are making the shift. Schedule a demo.
Source: USA Today
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