Safety is a top priority for construction firms across the globe to ensure every precaution is taken to safeguard worker health and welfare. But construction firms must also keep an eye on safety and protection of their business in general. Many construction and engineering firms are still doing things the old-fashioned way – with pen/paper and clipboards. Not securing critical documents, or not taking the proper precautions to ensure digital work product doesn’t get lost in the cracks, can potentially open firms up to liability risk and non-compliance fines and penalties.
Construction firms must move to eliminate these practices that expose them to risks threatening the overall health and welfare of their business.
Threat #1: Data Loss and Destruction
Consider the following ways physical documentation can open an organization up to vulnerabilities and risk:
- No access controls. Paper documents can be left on a desk, counter, copier machine or in a locked file cabinet or record storage area. Access to these documents could be accidental or nefarious, but in any event, the files can be accessed by anyone with no security controls in place. Digitized records can be encrypted or password-protected making them much harder to access from nefarious attacks.
- Data loss. Paper documents get moved around the office and in the field where they can easily be lost or misfiled. While fire and floods can trigger devastating losses of physical files, even one bad coffee spill can obliterate a document. Digital documents can be secured in the cloud and have backup copies made.
- File tampering. A five-page paper document can suddenly turn into a four-page document by someone simply removing a page. Content can also be erased or altered. Electronic records include timestamps that can be traced back to when a file was last accessed or modified.
Threat #2: Productivity and Collaboration Killers
A lack of digitization also zaps productivity and thwarts collaboration. According to a McKinsey & Company study on the construction industry’s digital future, “one reason for the industry’s poor productivity record is that it still relies mainly on paper to manage its processes and deliverables such as blueprints, design drawings, procurement and supply-chain orders, equipment logs, daily progress reports and punch lists.” The study also noted that, “process digitization means moving away from paper and toward online, real-time sharing of information to ensure transparency and collaboration, timely progress and risk assessment, quality control, and, eventually, better and more reliable outcomes.”
In addition to productivity losses and lack of data analytics that can drive better outcomes, PWC claims mismanaged paper trails can also routinely spur disagreements between owners and contractors on matters such as construction progress, change orders and claims management.
Threat #3: Erosion of Competitive Edge
Another Engineering and Construction Trends report from PWC emphasizes the importance of adopting technology to maintain a competitive advantage. According to the report, engineering and construction firms must “embrace engineering and construction technologies and specialization that lead the market, outpacing competitors.” Usually, firms that are able to adapt and embrace technological change are the ones that ultimately survive the competitive business climate. These early adopters understand the benefits of embracing new construction technology advancements as they look to gain an edge on their competition.
These benefits include:
- helping people and critical operations to stay connected;
- increasing the speed of decision-making process; and
- automating functions to make day-to-day tasks more efficient.
Fortunately, technology exists today to help construction firms safeguard their data and operations and the future of their firms. This technology is easy to implement and more cost-effective than ever before thanks to cloud-based solutions.
To date, construction executives have been exceptional at fabricating structures that are built to last. Now they must devote time and attention to put in place the same care and precautions to protect their vital data and work product. Only then can executives build a firm that’s built on a solid foundation as equally durable and long-lasting.
