Paperless Projects: The Future is Now

All construction projects have common elements: owner, design team, construction team, tools, equipment, materials, and... paper. Usually, lots of it. From design documents to contracts to change orders to meeting minutes to project memoranda — all on paper and all taking up space. Copies of these documents occupy the office of every major player on the construction project, resulting in reams and reams of paper. All of which begs the question: is all this paper really necessary?

Until recently, the answer to that question was a simple "yes." Each member of the team needed to be able to document every phase of the project in which it was involved in order to track the project properly, get the work done right, and to protect itself against the possibility of errors or claims by others.

Now, however, we have "paperless projects." Technology has reached a point where we can reduce the use of paper to document jobs. This is accomplished by using common databases where all the documented elements of a project are stored and transmitted electronically. The parties communicate through the database, including requests for information, change orders, and the like. Is this a good thing? It depends.

The reduction of all that paper can result in real savings, can reduce the need for storage space, and can streamline communication on a project. However, there are some important considerations when deciding whether to participate in a paperless project.

• Is it cost effective? Hardware and software, as well as database provider fees, are not inexpensive, and you should understand the costs of hardware and software before committing to a paperless project.
• Is the database provider solvent? If it quits business during the project you may lose critical information.
• Is the database secure? You and every other party to the project will have sensitive information in the database. You must be comfortable that the information you provide cannot be accessed by unauthorized persons.
• Is the provider unbiased? In the event of a dispute, the database provider should not be in the position of taking one side over another or have the appearance of favoritism.
• Will the provider train you? You need to know how to use the software to maximize your ability to access the project data.
• Can the provider supply hard copies of documents if necessary? In the event of a dispute, paper reproductions of the documents in the database will be critical.
• Can the provider testify as to the security, accuracy, and "routineness" of its record-keeping? In order for reproduced documents to be admissible in court in the event of a dispute, these elements are critical.

The bottom line: Proceed with caution before deciding to undertake a paperless project. They offer great promise in improving efficiency and reducing waste on projects, but you should only undertake one if you're prepared to pay the cost of the technology and if you understand and are prepared to mitigate the risks of proceeding without paper.

This article is intended to inform the reader of general legal principles applicable to the subject area. It is not intended to provide legal advice regarding specific problems or circumstances. Readers should consult with competent counsel with regard to specific situations.

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