4 WAYS MODERN DOCUMENT CONTROL OVERCOMES CONSTRUCTION COMPLEXITY
Learn how faster approvals, clear accountability, flexible document control structures, and efficient closeouts can meet the challenges of today's capital projects
Every stage and aspect of capital construction, from project scoping to facility acceptance, is affected by growing complexity. Crossing every project stage as it does, the document control function is hit especially hard. Document controllers need help to stretch their already overburdened departments to accommodate.
A RANGE OF INDUSTRY TRENDS DRIVE THE INCREASED COMPLEXITY DOCUMENT CONTROLLERS FACE.
CHANGING PROJECT FOCUS
Projects themselves are changing. An increasing percentage of construction projects qualify as megaproject (more than $1B in capital expenditures), up from 3% of the total to 33%[1] in just five years. A growing focus on environmental, sustainability, and governance concerns adds more layers of complexity that transcend project size.
COMPLEX PARTNERSHIPS AND FUNDING
Partnerships and funding structures for capital construction are more complex[2] and carry more requirements for collaboration, reporting, and interconnected accountability. Many funding streams, like those authorized by the $1.2T Infrastructure Investment and Jobs Act, carry specific requirements that must be accounted for and documented.
ALTERNATIVE CONSTRUCTION
The rising popularity[3] of alternative construction methods and approaches also boosts complexity. Integrated project delivery, offsite construction, performance-based contracts, and sustainable building practices – to name a few – all introduce unique requirements and documentation needs.
Construction is a late-adopter industry when it comes to software, so many organizations use document control solutions that weren’t built to support the challenges posed by increased complexity. Older and outdated software struggles to keep up with the sheer volume of documentation and often relies on expensive and cumbersome on-premise solutions and data storage. Software built for simpler business models struggle to handle demands like frequent revisions and multiparty approvals. General-purpose document control systems can’t automatically handle file types common to construction, don’t offer appropriate workflow templates, and struggle to account for regulatory requirements. Trends transforming the construction industry act as fuel for change, but often, a crisis or opportunity provides the spark. Perhaps a new partnership or funding source carries requirements the current system can’t easily meet, or looming litigation inspires a reckoning about an organization’s document control practices and capabilities. Whatever the inspiration for change, embrace the belief that an organization shouldn’t stay shackled to document control software that can’t meet their evolving needs. Better document control software that better aligns field and office can deliver significant benefits, including cutting errors and rework, reducing delays related to approvals and workflows, providing increased accountability, and saving time currently wasted on processes that don’t add value.
HOW CONSTRUCTION STRUGGLES TO KEEP UP
The construction industry struggles with lagging productivity and profitability compared to other sectors. Key statistics show the scale:
LABOR PRODUCTIVITY
Construction labor productivity has grown at just 1% annually over the past two decades, compared to 2.8% for the world economy. (McKinsey Global Institute)[4]
NET PROFIT MARGIN
The average net profit margin is 2.4% for general contractors and 4.2% for specialty trade contractors. (CFMA 2021 Construction Financial Benchmarker)[5]
OVERRUN BUDGETS
Capital projects typically overrun budgets by 30-45%. (McKinsey survey) [6]
CUT REWORK AND ERRORS
Blaming all rework and errors on document control would certainly not be a defensible position, but document control does play a role in both the problem and the solution. The need is real: Rework accounts for between 2% and 20%[7] of total project costs. That’s especially problematic because delays and overruns are common, with large projects across asset classes typically taking 20% longer to finish and running up to 80% over budget,[8] according to McKinsey. According to an FMI study, data — including the data housed in document control systems — may have caused $1.8 trillion in losses[9] worldwide in 2020 and may be responsible for 14% of avoidable rework, which amounts to $88 billion in costs.
2-20%
Rework accounts for between 2% and 20% of total project cost
35% of an average 40-hour work is week spent on tasks that don't move the project forward
Document control software fails to deliver value when it can’t scale to the demands of projects, an increasingly common problem in a world of increasingly complex construction. Organizations are right to worry that their aging or non-industry-specific document control system delivers some unwelcome outcomes:
INCREASED ERROR POTENTIAL
When documents are incorrectly or incompletely indexed and organized, mistakes become more likely, leading to costly errors and rework. Every project management team has its share of nightmare stories: the work began without approvals, the work package was executed entirely from outdated plans, and the resulting cascade of rework and rescheduling.
AMPLIFIED RISK
When embankment dams crumble, bridge spans collapse,[11] and high rises crumple,[12] the world watches while people in the industry wonder about the cause. Construction mistakes can have serious consequences. OSHA violations can lead to huge fines,[13] sometimes to the tune of hundreds of thousands of dollars. Contractors face lawsuits for missed deadlines and unsafe conditions. Wrong or outdated documents can turn profitable projects into financial disasters, especially when delays or maintenance are unplanned.
35% of an average 40-hour work is week spent on tasks that don't move the project forward
WASTED TIME
According to a survey by FMI, construction professionals spend 35% of an average 40-hour workweek—14 wasted hours[10] per employee each week—on tasks that don’t move projects forward, such as searching for the latest information, resolving conflicts, and reworking due to mistakes.
INEFFICIENT COLLABORATION
Good collaboration in large construction projects depends on easily sharing and managing documents—internally and across organizations. When the latest versions of plans, specifications, and reports aren’t easy to access, decisions get delayed, and their quality degrades.
SECURITY CONCERNS
Construction companies and owners using spreadsheets and older or generic document control software face risks of cyberattacks and data breaches. Incidents that have led to business disruptions,[14] emergency work suspensions,[15] and significant fines[16] illustrate and highlight the crucial need for bulletproof document security to prevent breaches and the financial and reputational risks that go along with them.
“We needed to ensure that our project stakeholders had a single source of truth for all project engineering documents and data. They needed to have the latest information at the right time and for the right purpose.”
- Joseph Lopez, Manager of Information and Records, Transurban
DREAM BIG WITH MODERN DOCUMENT CONTROL
Imagine a world where all stakeholders have immediate access to a unified source of truth, just as Joseph Lopez from Transurban visualized. Workflows have been re-envisioned from the ground up. Communication and information sharing is effortless. Decisions flow. You’re better equipped to navigate construction complexities.
With modern document control systems, that vision is a reality.
Innovative Document Register: Store everything, from engineering documents to compliance records, in one accessible place. No more emailing, Slacking, or sifting through files and conflicting versions.
Timely Access to Accurate Information: Connect stakeholders to the latest project data when and where they need it. Whether in the field or the office, updated plans, specifications, and reports are accessible at a moment’s notice.
Streamlined Collaboration: Experience seamless communication across teams and organizations. Share documents easily, make decisions faster, and keep everyone on the same page.
Enhanced Security and Compliance: Protect sensitive data with advanced security features. Audit trails and controlled access mean tight compliance and data breach safeguards.
Error Reduction and Time Savings: Reduce the risk of costly mistakes and rework. Expect more efficient operations and better decision-making with automated workflows and accurate indexing.
Streamlined document control simplifies complexity and leads to successful construction projects.
KEEP APPROVALS AND INFORMATION FLOWS ON TRACK
The average project delay is 200 days.[17] It’s discouraging but unsurprising, especially when many layers of review are involved between multiple stakeholders. Complex review and approval processes lead to ongoing project adjustments, rescheduling, and extra costs. While it can’t be blamed specifically on a document control system, the California High-Speed Rail project provides an object lesson in timely project progress. Delayed approvals have driven the estimate from $33 billion to more than $100 billion[18]—and the project is still incomplete. Even in less extreme examples, efficiency suffers when document reviews and approvals involve many parties and span multiple organizations. Teams must manually route documents through multiple approvals. Planners stress as these complex steps eat into their schedules, and field teams waste time waiting for updates and revised schedules. Even small changes in a document can mean starting the whole approval process again, wasting time and squashing productivity. Document managers know all too well that delays in approvals, reviews, and changes have obvious effects on project progress, timelines, and cost. Other complications, even though slightly removed from the build process, are common and no less worrisome. Inadequate document control systems give rise to:
COMMUNICATION BREAKDOWNS
When projects span multiple teams, which happens with increasing frequency, it’s common for teams to fall into intractable misunderstandings. Far-reaching consequences to project efficiency, profitability, and even completion often trace back to problems related to document control.
LEGAL AND COMPLIANCE
Issues Failure to properly manage complex approval processes can also lead to legal issues. Consider the Atlantic Coast Pipeline[19] (ACP) and Cape Wind[20] projects. The ACP was canceled after years of delays and an extra $4 billion in costs. Cape Wind, an offshore wind energy project spanning multiple groups and agencies, also faced regulatory delays and permitting challenges that drove up costs and left it dead in the water.
LOSS OF CROSS-ORGANIZATIONAL TRUST
Complicated review and approval processes across organizations also damage trust. For example, if document-driven communication between engineers and contractors is garbled or approvals are slow, the stakeholders might start doubting each other. This lack of trust and increased skepticism makes sharing information hard and complicates decision-making.
MODERNIZING FOR THE DIGITAL AGE: GRAHAM CONSTRUCTION’S HIGH-SPEED CONNECTION
For more than 20 years, Graham Construction[21] relied on an internal “Toolbox” system to track documents, bids, estimates, and more. But in the cloud era, with IoT connectivity and real-time data access, the solution was holding the company back. Data was siloed. New hires had difficulty learning the system, and estimators constantly recreated estimates from scratch. It was time to modernize and find a construction technology partner to bring leadership’s vision of a single source of truth to life. Enter InEight Document. Graham brought on the platform in a controlled way to demonstrate its value to long-time employees without overwhelming them. The system is now central to how teams work, managing more than 80 projects. Estimates are more accurate and easier to create. Stakeholders across organizations can access real-time data in the field and the office. Teams deliver more accurate work faster. And overall efficiency rose. With InEight Document transforming document control and connectivity, Graham Construction handed teams the keys to unlock productivity and steer business performance into the future.
BE CLEAR ON ACCOUNTABILITY
Accountability in document control can range from tactical considerations related to project execution — RFIs, change orders, approvals — to legal liability issues if serious problems arise. Happily, every project stakeholder aims to avoid situations with legal consequences. Clear, auditable accountability throughout the project through excellent document control practices is the best protection for most high-stakes conflicts. However, outdated tools and manual processes make it likely that even the most vigilant document managers struggle to deliver true accountability. When organizations are missing detailed, auditable records of decisions, approvals, and changes, it’s hard to know who should be held responsible for what, creating a cycle of finger-pointing and distrust that can affect projects and future partnerships. Without an audit trail, document managers know that all projects — especially highly complex projects — run the risk of additional challenges, too, including:
LITIGATION RISKS
Without a clear, technology-supported documentation trail, the risk of litigation skyrockets. The California High-Speed Rail[22] project is an example of poor documentation contributing to significant delays and cost overruns. The auditor's findings[23] suggested that simply having documents available is not enough to establish a clear, auditable trail. The scenario underscores how a shortfall in documentation increases vulnerability in legal disputes and threatens project timelines, budgets, and reputations.
PROJECT-WIDE ACCOUNTABILITY ISSUES
Without audit trails, potential problems lurk around every corner. Project managers can’t confirm whether safety officers did their checks correctly. Engineers can’t be sure if the construction team followed their designs properly. Subcontractors end up wrongly blamed for upstream mistakes. This confusion, combined with “New Blame”[24] thinking, fosters mistrust and defensiveness, slowing progress and harming relationships.
LACK OF CONTINUOUS IMPROVEMENT
The lack of detailed, technology-enabled records also limits the opportunity to learn from past projects. This shortfall means each new project starts from square one without the benefit of previous lessons, leading to repeated mistakes. In an industry that’s advancing with the help of technology, this constant reinvention puts any company at a competitive disadvantage.
PAVING THE WAY FOR ACCOUNTABILITY AND HIGH PERFORMANCE
Australia's $16.8 billion WestConnex Tunnel Motorway[25] project needed to coordinate across 500 employees and more than 520 companies to deliver $300 million of work—a situation that called for tight communications and strong accountability. But issues arose because legacy systems and email communications caused information access issues, and administrators were overloaded with handling document requests. Transurban, which is delivering and maintaining the project in collaboration with the New South Wales government, implemented InEight Document to become a single source of truth for the multi-stage initiative, helping manage more than 350,000 documents. Permission levels improved user accessibility and supported collaboration across teams and during operations in the defects period. With InEight Document, the consortium achieved fully electronic project handover, a first for the lead government agency. Transurban, which is delivering and maintaining the project in collaboration with the New South Wales government, implemented InEight Document to become a single source of truth for the multi-stage initiative, helping manage more than 350,000 documents. Permission levels improved user accessibility and supported collaboration across teams and during operations in the defects period. With InEight Document, the consortium achieved fully electronic project handover, a first for the lead government agency.
Project needed to coordinate 500 employees
InEight Document managed more than 350,000 documents
Project needed to coordinate more than 520 companies
UNLOCK PROJECT ACCESSIBILITY WITH FLEXIBLE DOCUMENT CONTROL
Construction projects are a maze of data and documents. McKinsey reports that for every $1 billion in project value, 30,000 to 40,000 documents[26] are typically generated. This volume of data often leads to fragmented document control, with documents stored in overburdened local file shares or managed through personal productivity tools. This fragmentation is why some 70% of construction professionals[27] resort to makeshift solutions like spreadsheets and email for organizing files—an approach that dampens efficiency, threatens work quality, and significantly undermines accountability.
Flexible document control systems bring order to this chaos. By enabling smart filters, automated metadata tagging, and adaptable distribution tools, flexible document control allows managers to build workflows and operating models around the strengths and needs of their projects, rather than limiting processes to the capabilities of the software. Today’s advanced systems — especially those designed specifically for large-scale construction projects — streamline processes for all users, whether in the office or field or inside or outside the organization, bolstering accessibility at every step. Key benefits of flexible systems:
TRACEABLITY
Robust search functions and centralized data make tracking document changes and decisions easy.
TRANSPARENCY
Clear, consistent access to the latest documents for all team members encourages open communication and responsibility.
CONTROL
Centralized repositories prevent version confusion and ensure that everyone works from the most current information.
SECURITY
Advanced controls and audit logs offer a comprehensive view of document access and modifications, safeguarding against data breaches.
MOBILITY
Access to information anywhere, on any device, empowers teams to make informed decisions in real time.
Flexible systems like InEight Document exemplify such solutions, transforming how document managers and teams work by promoting the alignment, clarity, and availability of project documentation. When every piece of data reinforces a culture of flexibility, access rises across the project lifecycle.
SAVE TIME AT CLOSEOUT
Project delays can have many causes, but routine document control tasks needn’t be among them. Automating or speeding up standard processes gives organizations a natural place to look for efficiencies and time savings, especially when the cost of delayed completions can be significant. For example, a $250 million project with a three-year timeline experiencing the average 30% delay[28] would add $68,493 daily to its costs, or an additional $75 million over the three-year period, bringing the total project cost to $325 million. The closeout phase often highlights the accumulation of misses in document control and becomes a migraine headache when documents have been lost or mishandled. Why aren’t the operations manuals complete? Where are the inspection reports? Why can’t the team find information on the critical system safety checks, or the release of liens? You can streamline workloads and deliver overall business value by modernizing documentation management and automating and simplifying tasks. Project closeout is the best example, but other key areas of concern include:
LEGAL DOCUMENTATION
Properly organized documentation is critical for ensuring and proving that projects adhere to every relevant regulation and that contractual obligations have been met.
POST-COMPLETION ISSUES
Unclear or incomplete handover documentation can also lead to issues for owners. The problems may be minor inconveniences, like difficulty locating utility access points, challenges matching paint colors, or confusion over warranty details. Problems may also be significant operational challenges, like an inability to perform essential maintenance due to missing schematics, retrofitting challenges due to unclear structural details, or even safety hazards from the unknown properties of construction materials. This confusion disrupts day-to-day operations and makes it hard for owners to respond effectively.
LONG-TERM OPERATIONAL INEFFICIENCIES
An inefficient handover affects the long-term operational efficiency of construction assets. Overlooking crucial details in this final phase can cause ongoing issues throughout asset lifecycles. Missing critical operational and maintenance guidelines can lead to frequent repairs, higher maintenance costs, and disruptions in functionality, shortening the asset's lifespan and affecting its performance and sustainability.
QUALITY CONTROL
Incomplete or poorly organized quality documentation casts doubt on project integrity and safety. Documentation gaps can lead to increased inspections, potential reworks, added costs, and broken trust.
STREAMLINE TO SAVE AT CLOSEOUT
Transforming Closeout Efficiency with Modern Document Control Efficient document control at project closeout is necessary for successful project delivery. By streamlining this critical phase, organizations save time and safeguard the integrity and profitability of the entire project.
- Avoid Costly Delays: Automate routine tasks to prevent delays that add costs. A smoother closeout means staying on budget and schedule.
- Ensure Complete Documentation: With everything in one place, easily find operations manuals, inspection reports, and safety check information. No more searching for missing pieces at the last minute.
- Reduce Post-Completion Issues: Clear and organized handover documentation prevents post-completion challenges, from maintenance hassles to compliance headaches.
- Enhance Long-term Asset Management: A well-managed closeout phase sets the stage for better long-term maintenance and operational efficiency, saving time and resources in the future.
MODERNIZE YOUR DOCUMENT CONTROL
Organizations would be wise to consider improving their document control capabilities with up-to-date software. With the fast pace of change in the industry, owners and contractors are moving toward more efficient systems that were designed for large-scale construction projects. This modern approach turns old challenges into chances for improvement and growth. Tailored, construction-first document control solutions give any company the tools and insight they need to adapt to today’s realities. InEight Document, created by construction experts for the industry and its intricate challenges, is a robust yet easy-to-use platform that targets key document control challenges, combining the latest cloud-based technology with an intuitive interface. InEight Document puts all project stakeholders on the same page—and keeps them there throughout a project’s lifecycle.
[1] https://www.vorys.com/publication-building-bigger-more-often-trends-and-impacts-in-the#:~:text=Megaprojects%20were%20only%203%25%20of,grew%20to%2033%25%20by%202018.&text=Researchers%20have%20estimated%20that%20the,to%20$350%20billion%20by%202029. [2] https://www.mckinsey.com/capabilities/operations/our-insights/an-ecosystem-of-partners-the-foundation-of-capital-project-excellence [3] https://explodingtopics.com/blog/construction-industry-trends [4] https://www.mckinsey.com/capabilities/operations/our-insights/improving-construction-productivity [5] https://cfma.org/articles/cfmas-2-21-construction-financial-benchmarker-executive-summary [6].https://www.mckinsey.com/~/media/mckinsey/business%20functions/operations/our%20insights/capital%20projects%2050%20reimagining%20capital%20project%20delivery/capital-projects-50-reimagining-capital-project-delivery.pdf
[7] https://becht.com/becht-blog/entry/measuring-construction-rework-delays-in-sustaining-capital-projects/ [8] https://www.mckinsey.com/capabilities/operations/our-insights/imagining-constructions-digital-future [9] https://www.constructiondive.com/news/contractors-lost-18-trillion-globally-in-2020-due-to-bad-data-new-report/606939/ [10] https://www.constructiondive.com/news/industry-could-be-overspending-177b-per-year-study-finds/529450/ [11] https://theconversation.com/libya-dam-collapse-engineering-expert-raises-questions-about-management-213546 [12] https://www.cnn.com/2021/06/28/us/surfside-condo-collapse-cause/index.html [13] https://www.osha.gov/penalties/ [14] https://www.constructiondive.com/news/simpson-manufacturing-cyberattack-construction/696408/ [15] https://brazilian.report/tech/2023/03/04/andrade-gutierrez-data-breach/ [16] https://www.theguardian.com/business/2022/oct/24/outsourcer-interserve-fined-4-point-4m-cyber-attack-failings-data-breach-personal-information
[22] https://information.auditor.ca.gov/reports/2018-108/index.html [23] https://information.auditor.ca.gov/pdfs/reports/2018-108.pdf [24] https://www.sciencedirect.com/science/article/pii/S0925753523001893 [25] https://ineight.com/wp-content/uploads/2021/02/20200127_CMAR_CS_WestConnex.pdf [26].https://www.mckinsey.com/~/media/McKinsey/Business%20Functions/Operations/Our%20Insights/Reinventing%20construction%20through%20a%20productivity%20revolution/MGI-Reinventing-Construction-Executive-summary.pdf [27] https://www.autodesk.com/blogs/construction/construction-industry-recovery-survey/
[28] https://www.cornerstoneprojects.co.uk/blog/delays-in-the-construction-industry-our-2022-survey-results-and-how-they-compare-to-2016/
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