- In construction, collaboration is essential for construction programs. Today, we’ll discuss the management of construction documents and why it is crucial to the longevity of your projects.
- In this complete guide to document management for construction, We’ll discuss four major reasons why owners are quickly moving to an application for managing construction projects to manage their construction project requirements:
- Reduction of Risk
- Accessible by Anyone, Anywhere
- Reduce the Pain of an Audit
- The Single Source of Truth
Historically speaking, the management of the construction documents during a construction project can be quite a hassle for all who are involved. The owners not only run a serious risk by failing to create an organized tracker of their audits, but every person involved in the lifecycle of the project will become confused and annoyed and spend their time looking for construction documents.
Let’s draw a picture. It’s not unusual for thousands of people to be involved in the construction of a single project. It could be modernizing an airport or constructing a new athletic arena, or it could be the construction of an extremely secure government building. Many unique contributors work for a single project, including architects, owners and supervisors, construction managers, engineers, contractors, project managers, sub-contractors, estimators, suppliers, administrative personnel, and much more.
Prior to the advent of software for construction, managing documents for construction was a headache for everyone concerned. Project participants typically relied upon various offline storage spaces for hosting and exchanging information, such as spreadsheets in Excel, filing cabinets, external hard drives, desktops, and a myriad of other difficult-to-access places. This messy, unorganized system of controlling documents created a risk for the owners, impeded collaboration, delayed timelines for projects, and eventually cost the users billions in dollars.
A report released by FMI Corporation. FMI Corporation revealed the fact that accuracy and document documents issues caused the construction industry to lose more than $31.3 billion in 2018. This is quite a bit of money that was taken from the pockets of the owners.
However, it doesn’t need to be this way. There’s a better solution for document control.
If you’re unsure if your company is suffering from a flawed construction project management process, think about these questions…
Where do I find that document? I don’t know which direction to go or who to contact.
- Is this the most current and up-to-date version of the document?
- My supervisor has already signed the document.
- Did we pay this contractor?
- Is this the most current version of the sketch?
- Where is the specification sheet?
You’ve probably had a similar experience. If you have, then you’re probably having issues with your process for managing construction documents.
Let’s look into the four main reasons why owners are moving to software for managing construction projects.
Reduction of Risk
Three issues are at the top of any owner’s head:
- Do I have the capacity to finish my project within the budget?
- Is my project on schedule?
- Do I reduce my risk to the greatest extent is
A lot of owners don’t know they’re in danger until a catastrophe occurs (like an unavoidable lawsuit, claim, or major construction defect, however, a properly constructed document management system minimizes the risks to an owner’s legal liability. Workers’ compensation claims, disputes about the construction of a project, and the costs of claims and litigation can be expensive for owners. Anyone who’s worked in the construction field understands that everyone is looking to make ends meet. A well-designed construction project management system can reduce the chance of a successful lawsuit against the owner. The consequences of these legal junctures go much more than the financial costs and can often delay projects for months or even years.
Let’s take an example. An HVAC contractor puts up the steel beam 2 feet from the needed installation in the room. It blocks the required AC ventilation, preventing an HVAC contractor from finishing his job. If a homeowner has an outdated building, document management software will be forced to look for hours across multiple systems in order to locate the documents needed to figure out the best method for installing the HVAC in accordance with the new guidelines. If you’re searching through an old file cabinet, searching for desks or disk drives, or looking for a needle in the field. It’s virtually impossible.
A well-designed document control system can help the owner (or the project manager) in addressing these questions.
- What did the first spec sheet and drawing contain?
- Are there any changes to the installment?
- Was the document changed?
- Did the contractor and the contractor have a written agreement? Writing, and have they confirmed the revised specifications?
The answers to these issues are accessible in just a few seconds using a construction project management program like Trimble’s eBuilder Enterprise. Proper document control does not just save owners’ time, but it also helps them save money. Instead of having a lawsuit to follow, the owner can directly access the document inside the e-Builder to find out if the document was altered or accepted. A well-designed method of managing records in construction imposes accountability and transparency for everyone involved.
Unlike a physical paper trail that could get lost, hosting construction documents in a digital environment with advanced tracking/collaborative properties allows owners to shift responsibility to the general contractor or supplier, hence reducing their risk.
Another way of looking at this is to consider that e-Builder Enterprise holds the project management team accountable for the daily activities within the project. Construction software monitors activities that could pose a risk to the project and, more importantly, the program’s actual cost. Owners can benefit from the transparency that eBuilder offers by providing a display and report on the project, process, and program levels. When budgets, commitments, and invoices are modified or added, e-Builder Enterprise performs cost validations. The modifications and additions are compared against the Contract and Budget to ensure that there is no overage of budget or contract amounts.
For the owners to determine what projects have the best chance of generating profits is the top concern. This is why a well-designed documentation management process becomes essential. In a typical construction setting, the information silos that exist between sub-contractors, contractors, and architects make it almost impossible to accurately assess and forecast the timeline of profitability of a construction project.
Project forecasting is actually the foundation of every business plan. It is important to pinpoint the desired destination prior to making any decisions about the best path to take. Forecasts are not 100 100% accurate, but they are precise enough to recognize the possible risk. The sooner you can identify the possibility of a chance, the better you will be at avoiding it. Forecasting can help you take the most proactive steps you can and reduce the risk of potential dangers.
Risk mitigation isn’t possible without a well-designed Document control program.
Accessible by Anyone, Anywhere
The ache of traditional manual construction documents isn’t something new. For those who are yet to switch to a more modern document management system such as e-Builder, the usage of paper could delay their construction projects, adding confusion and costing the company money.
Contrary to a document saved and stored on the cloud, construction documents made of paper are lost in the chaos. If dealing with paper documents, project participants must depend on physical signatures to sign modifications to orders, updated specifications sheets, approvals for funding invoice payments, and much more. This physical labor results in delayed timelines for projects as well as employee discontent and a decrease in productivity at construction sites. Contractors could wait to build the wall for several weeks, awaiting an official signature from somebody who is away on vacation. In reality, this is inefficient and can delay your project.
One of the builder’s most prominent supporters is Susan Medeiros of Cumberland Farms, who explained the difficulty of storing the documents in offline mode:
“Like the majority of people present on the call, before e-Builder, Cumberland Farms had a significant need to consolidate our records. We had plans on OneDrive and photos stored in another location, letters stored in another location, contracts somewhere and then, some documents and some documents. You can see the picture.”
The latest element to the paper versus digital debate is the fact of the COVID-19 virus. With increasing numbers of people shifting to remote work (likely ending as an indefinite shift), the need to rely on paper and paper-based processes is an obstacle to all construction projects. It could be due to the absence of time or worry about their health; those who have the possibility of working remotely will not be going to an office to sign documents for construction or to open the office for contractors to get an updated copy of the paper.
The management of construction documents is made much simpler when all documents are organized and stored digitally using construction software such as e-Builder. Here’s a screenshot of how document storage appears in the e-Builder application. Please take note of the customized file structure as well as access history, as well as the ability to edit documents inside the program within the application itself. There is no need to download files on your PC, edit with an external software, and then re-upload.
Storage of documents in e-Builder Trimble’s project management software as well as capital management program software developed for the owners.
No more trips for office work, no waiting for a signature on paper, or even rummaging through a filing cabinet stuffed with old change order forms that are 40 years old. With a construction project management tool such as e-Builder, everyone who contributes to a construction venture can electronically access documents regardless of where they are. It doesn’t matter if it’s on a laptop computer or tablet, an iPhone, or are working on-site or in another country. It is possible to get the construction documents they’re seeking.
For companies that are owned by commercial entities, this change could be quicker than for an owner operating in the public sector. Indeed, the majority of state governments, for example, New Jersey, have physical signature-type processes to monitor and manage business. In the wake of this, local bodies of governing are contemplating a faster acceptance of technology for construction, even if it’s as simple as recognizing electronically signed documents as the official ones for changes to orders. It will be fascinating to see how governments adopt technology to combat the Coronavirus. Some may not have a choice but to need to advance their daily activities and projects.
Reduce the Pain of an Audit
The very sound of “audit” inflicts fear in the eyes of government contractors. For those who own businesses in the areas of education and government, papers and trails, particularly those relating to financial records, become more vital. When financing and public funds are involved, the scrutiny of the project can be much more extensive. The quality of documentation can be the key to the decision of whether or not your boss will allow you to continue your job. This is how crucial the proper control of documents is.
As you’re working with the government, compliance with federal, state, and local regulations demands that project managers and owners adhere to a strict approach to managing construction documents. It doesn’t matter if it’s a quality control concern on the project, an employment rights complaint, or a claim against a contract; monitoring communication and changes through central software for project and construction management can help you save time and stress.
When you are closing the project, proving compliance with local regulations could be a nightmare when a business owner or contractor isn’t documenting their activities. To be sure that you comply with the regulatory body, having proper management of documents is the most essential measure you can take.
The Single Source of Truth
In any construction project, collaboration among the key stakeholders is essential. Construction has traditionally been a very fragmented procedure, with many contributors spread across various platforms. The purpose of the software for construction is to integrate multiple systems into a single point of reference. In this location, everyone is able to collaborate and share crucial information about projects.
Managers of projects have traditionally used paper documents, random Excel spreadsheets, and emails to monitor changes throughout the lifecycle of a project. It doesn’t matter if it’s a change request spec sheet or an illustration — information is a risk for a project’s success. Contractors, project managers, architects, engineers, and even suppliers must have access to the status of the project.
If you’re using a program like e-Builder for project management, users are able to trust to know that what they’re viewing in the application is the most up-to-date and correct version. Users can monitor the history of their performances and find out what’s changed over time.