Proper document management is critical for businesses of all sizes in the construction industry. Many construction companies have taken the first step and have moved from paper-based construction document management systems to digital systems. However, many continue to host their document management systems on internal servers and have not yet resolved their remaining document storage and accessibility issues. Moving to a cloud-based construction document management system is the key to clear and easy collaboration and communication between teams. Read on to learn more about document management systems.

Advantages and disadvantages of using internal servers for construction document management

The use of internal digital servers is an improvement over managing paper-based documents. They serve as a central repository of documents with easy search capabilities. The transition from paper-based systems to internal servers will bring benefits to construction companies such as increased efficiency and security, cost savings, better accessibility, and easier management of regulatory compliance.

However, the use of internal servers for the management of construction documents is not without its limitations, including:

• a significant initial investment in servers and licenses
• low scalability as business needs increase
• ongoing maintenance requirements for data backup and disaster recovery

The most important point is that internal servers limit access to documents to those who work in the office - which means that those in the field have to physically go to the office to get the information they need. If that doesn't seem like a big deal in terms of efficiency and time spent, consider that project managers and site supervisors spend an average of 5.5 hours per week simply looking for data/information about the project. This means that in terms of annual cost impact, access to information costs the average construction company over $16,000/year per individual.

Another challenge with internal servers is version confusion. As revisions occur, multiple document versions are created. If foremen, field supervisors, and subcontractors are not notified of these changes or don't have immediate access to plan updates, it can easily lead to errors and costly work if crews consult an outdated document. In the case of fixed price contracts, this could wipe out all the profits.

Benefits of cloud-based construction document management

Cloud-based document management systems allow system accessibility via the Internet, granting access to any user regardless of location - all they need is an Internet connection. It's a game-changer for the construction industry, given that so much work is done outside the office on construction sites and in remote areas.

Cloud-based systems offer several advantages over traditional on-premise systems, including:

• Accessibility: Cloud-based systems can be accessed from anywhere with an Internet connection, making it easy for team members to access documents regardless of location.
• Collaboration: Cloud-based platforms remain the pinnacle of collaborative technology; authorized users can edit or comment on documents from anywhere using a mobile device.
• Real-time communication: Cloud-based platforms take advantage of mobile technology <a href="https://www.civalgo.com/blog-post/improving-construction-office-field-communication">to seamlessly connect the office and field, allowing for real-time communication between teams so work can continue as planned.
• Scalability: Cloud-based systems can be scaled up or down as needed, making it easy to adjust the document management capabilities of construction companies according to their changing needs.
• Cost efficiency: Cloud-based systems generally have lower initial costs and can be more profitable in the long run because businesses only pay for the storage and services they need.
• Automatic Backups: Cloud-based systems generally include automatic backups, ensuring that documents are always safe and can be easily restored in the event of a disaster.

With cloud-based construction management software like Civalgo, construction document management is integrated into a larger system that allows construction companies to schedule and dispatch teams, track productivity and project costs, manage site security, manage site security, automate payroll, and communicate in real time between office and field.

Transition to cloud-based construction management software

There's really no competition between on-premise document management systems and cloud-based systems. The advantages, especially in an industry as fast and complex as construction, far outweigh the disadvantages.

That said, the transition from legacy systems is never effortless, and there are a few challenges you need to be ready for, the most common of which are:

• Employee buy-in: Employees may be resistant to change and hesitant to abandon familiar processes. Appropriate training and education on the benefits of digital document management can help ease the transition.
• Integration: Businesses may need to integrate their cloud-based construction document management system with other systems and applications. To avoid too many complications, choose cloud-based construction management software that can be integrated with any SaaS application or service.
• Security: Businesses need to ensure that their construction document management system is secure and that sensitive documents are properly protected. While cloud-based construction software is profitable in the long run, there are usually upfront costs associated with the transition.

Before choosing cloud-based construction management software, it's a good idea to understand the product, schedule your demo with an expert to find out more.

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