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Document Management System in Construction Industry

By: Dustin Baker

In this article, we look at the specific benefits of a good document management system for the construction industry. We look at the industry processes and the documents typically generated in these. We will also look at how a construction company could achieve better business results through a good document management system.

Construction Industry Processes

The major processes for any sizable construction project include:


  • Planning a project – purpose, funding, environmental impact, legal aspects

  • Design – Drawings and Specifications

  • Tendering – Inviting bids based on either the whole design or drawings and bill of quantities

  • Preliminary cost estimations

  • Evaluating the bids and awarding the contract

  • Financial planning for profitability and timely cash availability

  • Attending to legal aspects like obtaining permits, health & safety regulations, contract terms and conditions and others

  • Scheduling the work considering the sequencing of different tasks and deadlines for completion

  • Assembling needed materials, equipment, personnel and getting the work started

  • Accounting, monitoring and progress chasing

  • Inspections and handing over the completed structure to the owner



Each of the above processes (and sub-processes) generate considerable documents, with some of them creating massive volumes.

Planning and Design

Both the planning and design processes require collaborative work, with the participation of many persons. Project owners, construction manager, project manager, design engineer/architect, civil engineers, surveyors, quantity engineers, cost estimators, financial and legal advisors are some of the persons thus involved.

And the issues to be reviewed would include:

  • Overall objectives of the project,

  • Specific plans for achieving them,

  • Strategic, physical, environmental, financial and legal implications of these plans


  • Overall and detailed design for completing the project given the constraints, ending in drawings and specifications


    • Quantities, Costs, Tendering, Contract

    Next comes the task of finding contractors to execute the work. This is typically done by floating tenders and inviting bids. Tender documents have to be prepared in a way that the bidders can make realistic cost estimates and submit their bids based on these.

    Final stage of this phase involves evaluating the bids, negotiations and final award of the contract to the bidder who has not only submitted a competitive bid but is also assessed as having the competence and facilities to execute the particular project. This again is a document intensive process – bids comparison worksheets, bidder profiles and testimonials, correspondence, minutes of negotiations, decision records with details of parameters considered and so on.

    Construction Project Implementation

    Once the contract is awarded the project owner has to ensure that:

    • Necessary permissions are obtained and the requirements of Health & Safety and other regulations are complied

    • Funding is arranged so that the contractor can be paid progressively against completed works

    • The contractor is executing the work according to plans and meeting the agreed quality and performance specifications

    • The project is progressing speedily enough to meet completion deadlines



    Documents like municipal permits, regulation copies, financial plans, bank mortgage loan agreements, work inspection reports, work progress charts and others would be generated.

    The contractor would be generating further massive volumes of documents. These would include:

    • Work schedules and allocation sheets

    • Work progress and completion reports

    • Attendance cards and payroll

    • Records incidental to materials procurement and transport

    • Inventory records – receipts, issues and balances to be accounted

    • Cash transaction records

    • Work inspection reports and progressive bills

    • Records to be maintained under different government regulations, including income tax regulations



    For larger projects, PERT and CPM charts and reports would also be created to control achievement of cost and time targets. These documents are so complex that computer assistance would invariably be needed to generate useful reports in a timely manner.

    In this part, we look at how computerized and Web based document management systems could not only make document management efficient but could also produce concrete business results.

    Planning a Project

    Each project would have a unique ID and all documents would be linked to this ID. The document management system would reside on a hosted server or on the Web, accessible to authorized persons, both inside and outside the organization.

    Digital copies of all paper-based reference materials could also be stored under the same project ID.

    It would be possible for authorized team members to access a document, and review and comment on it. In this way, the original drafts could be developed into finished final reports after considering all relevant inputs.

    One person would be assigned the task of progressing each report and an authorized manager would then approve the final draft.

    The key advantage of such a system is that the necessity for all team members to physically assemble at one place could be minimized. Instead each member could review the up-to-date status of each session and add his own contribution, from wherever he or she is. And this can be done at a time when the person is free and able to focus on the issue.

    Tendering, Bid Evaluations and Contract Award

    A good document management system would prove invaluable at this stage. Some examples:

    • The tender documents could be prepared in minutes based on the bill of quantities and the drawings could be easily attached. The whole set can then either be sent by electronic mail to bidders or printed out and sent by conventional mail.

    • Bids received can be tabulated and compared at far greater speeds and with greater accuracy.

    • Communication with bidders can be instantaneous and it would be easy to obtain clarifications and document these.

    • Negotiations can also be documented online, or recorded offline for review and comment by authorized persons.



    Conclusion

    The examples given above are not exhaustive. There are several other aspects, such as contractor payrolls and materials inventory records, which could benefit from proper interfaces with a good document management system.

    The overall result would be higher profitability, better performance records and more business.

    Article Source: Free Articles - http://www.articlesworldonline.com

    About Author:
    Ademero, Inc. develops document management software. Visit their web site devoted to document management at www.ademero.com. Browse the resources section which includes the largest collection of posts from real users reviewing all of the most popular document management systems available.

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