Construction Sector Facing Faster Payments With Sage HCM

Accounting, financial, human resources (HR) and payroll technology platform, Sage, has announced Sage HCM, a new human capital management (HCM) solution that could transform how construction firms manage their workforce costs and project finances.

Targeting mid-market organisations in North America, Sage HCM was built for Sage Intacct to connect HR, payroll and workforce data directly with financial management. The platform includes a specialised construction solution designed to address the unique challenges of project-based operations, including union rules, certified payroll and prevailing wage requirements.

For construction businesses, labour costs represent one of the most significant drivers of project performance, yet payroll, HR and finance data often sit in separate systems. This fragmentation creates blind spots that make it difficult to accurately measure workforce costs against project outcomes.

Sage HCM was built specifically to bridge these gaps, offering construction firms a way to sync labour and payroll data with job costing within a single environment.

Sage HCM will first be showcased in San Francisco from 28 to 30 April 2026 at Sage Future.

Bridging field and office operations

While Sage HCM provides a core foundation of essential HR, payroll and talent management tools, HCM for construction extends from the standard features with specialised functionality built for project-based operations.

The construction-specific solution automates union regulations, certified payroll and prevailing wage requirements, bridging the gap between the field and the office. It ensures that labour data is synced directly with project financials for real-time cost accuracy, giving construction firms stronger control over project performance.

By consolidating HR, payroll, time and talent management into a single ecosystem, the platform supports construction companies in navigating complex hurdles, such as multi-entity structures and diverse payroll jurisdictions across different project sites.

"For many construction businesses, labour costs are one of the biggest drivers of project performance, but payroll, HR and finance data often sit in separate systems," says Dustin Stephens, CEO, Alliance Solutions Group.

"Bringing these together gives customers a clearer view of labour costs, improves payroll accuracy and helps them make better decisions at both the project and business level. This gives customers stronger control over project performance and supports more predictable, profitable outcomes."

Connecting workforce data to the bottom line

Through the new product, HR, payroll and workforce data will be offered directly within Sage Intacct, allowing Sage HCM to bridge the gap between people management and financial oversight.

This integration could offer construction firms a sharper lens through which to view workforce costs, which is typically their highest and most volatile expense. For project-based businesses, this visibility is particularly valuable, as labour spend has a direct influence on job profitability and overall business performance.

According to Deloitte's Human Capital Trends research, 74% of organisations now view the integration of workforce data into decision-making as a top priority. For construction firms managing multiple projects simultaneously, this integration could mean the difference between profitable projects and cost overruns.

"HR, payroll and finance data should not sit in separate systems," says Jonathan Cowan, EVP, HCM, Platform Strategy and Operations at Sage, in a press release.

"With Sage HCM, organisations can connect workforce and financial data in one place, improve visibility into labour costs, strengthen payroll accuracy and make better workforce planning decisions. By bringing these workflows together on the Sage platform, we're helping customers operate with greater clarity, control and confidence."

AI-powered payroll validation for construction

Sage HCM will be launched with Sage's first AI agent dedicated to HR and payroll workflows, HCM Agent.

The agent will help construction firms to streamline tasks such as payroll preparation, validation and reconciliation, while also highlighting compliance risks and reducing manual effort. For an industry dealing with complex union agreements and prevailing wage regulations, this automation could reduce the administrative burden while maintaining strict human oversight.

Sage has specifically designed it to help improve efficiency and accuracy without compromising oversight. It will also help teams automate routine work while maintaining control over critical processes such as payroll and compliance, allowing construction businesses to focus resources on project delivery rather than administrative tasks.

Sage HCM connects time, talent and payroll data to the bottom line, helping finance leaders in construction control costs and improve long-term planning across multiple projects and job sites.