4 WAYS MODERN DOCUMENT CONTROL OVERCOMES CONSTRUCTION COMPLEXITY
MODERN DOCUMENT CONTROL OVERCOMES CONSTRUCTION COMPLEXITY
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.
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.
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.
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 Older and outdated software struggles to keep up with the sheer volume of documentation and often relies on expensive and cumbersome on-premise solutions and data storage.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:
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]
The average net profit margin is 2.4% for general contractors and 4.2% for specialty trade contractors. (CFMA 2021 Construction Financial Benchmarker)[5]
Capital projects typically overrun budgets by 30-45%. (McKinsey survey)[6]