How to Establish Tool Accountability In Your Construction Business

Did you know that tools and equipment can account for up to 50% of a construction project’s total cost?

Yet, many companies still struggle to track them effectively.

Poor tool accountability leads to delays, unexpected expenses, and even safety risks.

This article offers practical tips to help you take control of your tools, reduce losses, and improve your bottom line.

Use a Digital Tool Tracking System

Digital tool tracking systems increase visibility and control over tool locations, usage, and assignments, helping you control costs, prevent loss, and improve accountability.

Construction businesses worldwide rely on different kinds of software to improve their operations, from BIM and construction project management to tool tracking.  

And this technology adoption is accelerating.

A recent report by Deloitte and Autodesk found that out of 16 different technologies, the average construction business now uses 6.2, which is 20% more than the previous year.

Illustration: GoCodes / Data: Deloitte & Autodesk

Among these, asset tracking stands out as a fast, high-impact upgrade.

It delivers value quickly and supports broader digital transformation efforts.

Cloud-based, mobile-first tracking systems are especially effective.

They bridge the gap between field teams and office staff, enabling faster decision-making and better resource allocation, as Sunway Property’s Ziqing Liew notes:

Illustration: GoCodes / Quote: Deloitte & Autodesk

With a tool tracking solution like GoCodes, for example, you can view each tool’s last known location on a map, track usage history, assign tools to team members, and manage everything from a phone or tablet.

Source: GoCodes

That kind of access improves control while saving time and reducing manual errors. 

Tool tracking also helps protect against theft, and, unfortunately, construction equipment is a frequent target of theft.

In one recent Philadelphia case, $65,000 worth of equipment was stolen from three construction companies.

Source: 6abc Philadelphia

The worst thing about these cases is that, besides disrupted operations, there’s very little chance you can get your assets back if you’re not using digital tool tracking.

So, yes, without tracking in place, recovery is unlikely.

But GPS-enabled trackers and scannable labels establish clear ownership and aid in asset recovery.

While GPS isn’t typically used on every tool, it can be applied to high-value items, toolboxes, or containers to great effect.

Moreover, GoCodes real-time trackers have geofencing capabilities, giving you an additional layer of security around critical areas like storage units and yards.

Activating geofence loss alerts will help you log and track any suspicious movement in real-time, and aid in asset recovery.

Source: GoCodes

Ultimately, automating tool tracking is a must in this day and age.

It’s a smart investment that strengthens security, boosts efficiency, and helps you run a more profitable construction business.

Assign Tools to Individual Employees

Assigning tools to specific employees increases ownership and responsibility.

When a worker’s name is tied to a particular tool, they’re more likely to take care of it, reducing damage, loss, and unnecessary downtime.

And this matters.

According to Equipment Watch, the cost of owning and operating construction equipment can account for 10 to 50% of total project costs.

Illustration: GoCodes / Data: Equipment Watch

With tools being such a major investment, minimizing waste and maximizing usage is essential.

Assigning tools helps prevent common issues like tool hoarding, loss, or idle workers waiting for equipment.

More importantly, it makes individuals responsible for the condition and whereabouts of the tools they’re using.

In short, it turns passive usage into active ownership. This approach also deters theft and misuse.

Source: GoCodes

Construction business owners and managers know that tool loss is a widespread problem, and research backs this up.

While there are many cases of pure negligence, Bauwatch’s report shows that small tools are the most commonly stolen construction equipment and that nearly a quarter of these thefts are inside jobs.

This is no surprise because the lack of control and accountability opens room for theft.

In one recent case in Putnam County, an investigation is currently underway after $15,000 of power equipment was stolen from an equipment store.

The main suspect?

You guessed it—it’s one of the employees.

According to Putnam County Sheriff Bobby Eggleton, the gradual disappearance of several tools is a clear indicator of an inside job.

Illustration: GoCodes / Quote: WCHS TV

This was a depot store.

Now imagine how much harder it would be to spot such patterns across multiple job sites.

So, what can you do to prevent these kinds of situations?

It’s simple: You assign tools to employees and track the tool assignments.

One traditional method is using tool cribs, like those from WireCrafters.

Source: WireCrafters on YouTube

These are controlled storage areas where a dedicated attendant checks tools in and out to specific workers.

This setup adds a layer of accountability by recording who took what and when, while also reducing idle time caused by misplaced tools.

But while tool cribs improve control, manual tracking still has limitations.

Paper logs or spreadsheets are slow, prone to human error, and don’t offer real-time insights.

In fast-paced construction environments, that lack of visibility can lead to missed returns, duplicated requests, or unnoticed losses.

That’s where digital assignment systems excel.

Any reliable tool tracking software will enable you to assign the asset while also defining location, return date, and any other relevant information.

Source: GoCodes

The bottom line is this:

Assigning your tools to employees establishes site-wide accountability with minimal investment, so make sure you incorporate this tip if you haven’t already. 

Create a Tool Check-In/Check-Out Procedure

Building on the previous point about tool assignments, a structured check-in/check-out process takes accountability even further.

It ensures every handoff is documented and traceable, minimizing loss, misuse, and confusion on busy job sites.

Disruptions are common in construction.

While difficult to quantify, every foreman and project manager feels the impact.

One way to reduce chaos and boost efficiency is to connect your data across processes, including tool management. 

The same Deloitte and Autodesk study reveals that construction leaders save roughly 10.5 hours per week thanks to investing in a more uniform data environment.

Illustration: GoCodes / Data: Deloitte & Autodesk

That translates to 1.5 days a week!

A check-in/check-out system is just one example of creating a uniform data environment, but it is an essential one for ensuring general tool accountability.

In this case, the core thing is having access to detailed logs.

Secondary school teacher Greg Wellwood breaks down the gist of it by explaining the role of tool room attendants who need to capture every tool exchange.

Illustration: GoCodes / Quote: That Shop Teacher Guy 

In construction, however, the stakes (and costs) are much higher, which is why you need more reliable mechanisms in place.

With digital check-in/check-out software, you get a centralized, real-time log of every tool handoff.

You can use simple mobile forms or barcode and QR code scans to automate the process and keep accurate records.

Source: GoCodes

You can easily start barcoding tools and equipment and linking these with a database.

When a worker scans an asset tag with their smartphone or a handheld scanner, asset tracking solutions capture that device’s GPS location, which eliminates the need for manual input.

This simplifies essential asset management tasks, from checking who is using an asset and where to tracking maintenance tasks and monitoring equipment conditions.

Naturally, every crew member can instantly view and update asset details based on their user permissions.

Adjusting user permissions is particularly useful if you want to fine-tune who has control over tool assignments and entrust the process to specific personnel.

Regardless of what you opt for, digital solutions create a robust audit trail for all equipment, as pictured below.

Source: GoCodes

In the end, check-in and check-out procedures can take different forms, but the ultimate goal is to maintain visibility and accountability.

The quickest way to do that is by adopting digital solutions.

Train Employees on Proper Tool Use

Accountability starts with proper tool use and extensive employee training.

Why is this so important?

On construction sites, tool misuse is usually viewed first and foremost as a safety risk.

This is not surprising given that the sector accounted for nearly one-fifth of all fatal occupational injuries in the U.S in 2023.

While not every incident can be tied to incorrect tool use, these figures point to deep gaps in training, accountability, and on-site discipline.

According to a survey by The Center for Construction Research and Training (CPWR), 71% of participants identified training programs as the top method to encourage safe and proper tool use.

Illustration: GoCodes / Data: CPWR

While a well-structured training program is one of the most effective ways to prevent on-site incidents and harm, proper tool use has additional benefits, including:

• Extended tool lifespan
• Reduced costly downtime
• Stronger culture of accountability

When tools are handled incorrectly, it quickly leads to costly equipment damage, avoidable project delays, and drops in productivity.

The fix?

Build a robust, ongoing training program.

To build an effective program, start with comprehensive onboarding sessions for new hires that cover proper tool handling and site protocols.

While quality onboarding can achieve a lot, it needs to be supplemented with regular safety refreshers—short, targeted sessions that aim to reinforce key practices.

For example, a five-minute video like this one can serve as a quick reminder on safe manual handling techniques before shifts begin.

Source: Be Accredited Group on YouTube

You should also reinforce training with visual reminders posted around job sites and storage areas.

Anything from simple notices to larger instructional posters, as shown below, will do.

Source: F & K Power Tools

These cues help keep safety and accountability front of mind, even during hectic workdays.

As Hamid Etezadkhah, Vice President of Global Supply Chain at Klassner Furniture, wisely notes, focusing first on people and then processes naturally leads to the performance you want.

Illustration: GoCodes / Quote: LinkedIn

In short, effective tool training reduces risk, improves care, and strengthens accountability.

All this is essential for safer, more efficient construction operations.

Schedule Regular Inventory Checks

Regular inventory checks are one of the simplest yet most effective ways to maintain tool accountability on construction sites.

These recurring audits help detect missing, misplaced, or damaged tools early, allowing managers to act before minor issues turn into costly problems.

More importantly, they reinforce the message that accountability is a daily expectation, not a one-time event.

In construction, inventory loss can happen due to shrinkage (the gradual disappearance of tools through theft, loss, or errors), damage, or obsolescence.  

Source: GoCodes

Shrinkage is often the biggest challenge for firms, and scheduled audits are one of the best defenses against it.

Now, to get consistent results, you should standardize the inventory process.

Even basic tools like checklists or templates significantly improve accuracy and ensure all team members follow the same steps.

Source: GoCodes

That said, it’s critical to make these checks as quick and straightforward as possible.

Manual, paper-based solutions often fall short in fast-paced construction environments, where workers already juggle multiple high-priority tasks.

That’s exactly the point made by Paul Heitlinger, General Manager at Nokia AIMS:

Illustration: GoCodes / Quote: Supply Chain Digital

There are better ways to conduct essential checks than moving from one storage bin to another.

Effective planning needs to be backed by the right tools for execution.

Digital inventory systems, equipped with mobile scanning and field update capabilities, enable workers to quickly verify tool quantities, update records in real time, and flag issues without ever leaving the jobsite.

Source: GoCodes

This efficiency frees up valuable time to keep projects moving forward.

By pairing regular audits with intuitive technology, construction businesses can maintain accurate inventories and drastically reduce avoidable losses.

Conclusion

Chances are, you’re already using some of these tips and strategies to manage your tools.

However, ensuring tool accountability and preventing loss requires ongoing dedication and constant improvement.

There’s always room to get better, whether it’s faster, more transparent check-in procedures, comprehensive crew training, or regular inventory counts.

Automation and digital tools can transform how you manage assets, but the most important step is to honestly assess your current processes and how well they meet your business’s present and future needs.

Once you’ve done that, you’ll be ready to fine-tune your approach, boost efficiency, and protect your valuable equipment.