“I bought a house in Texas, sold a condo in Denver and never once met buyers, sellers, or had to go to a bank to sign papers,” said a new homeowner. Electronic contracts and signatures have revolutionized the real instate industry.
The construction industry has been slow to adapt to digital contracts and e-signatures. That’s no surprise; we’ve been historically slow to adapt to any technology. E-signatures have been in use over 20 years and they’re just now “catching on” in construction.
Construction Industry E-Sigs
Here’s the bottom line: The benefits outweigh the risks. “General contractors and construction managers, both of whom have integral roles in contract administration and project management, appear to be leading the implementation of e-signature technologies,” says Construction Dive.
The two most important aspects are speed and security. Contract execution is faster and more efficient. Any technology that reduces the manual-entry margin of error is one that is worth considering sooner rather than later.
How Digital Documents Enhance Project Management
Collecting signatures during some phases of pre-construction and construction can take a long time. –DocuSign®
When surveyed, contract managers said the most difficult aspect of the job is locating the latest version of a document. When you go completely digital, revisions and changes can be more easily located.
Change orders can now take effect in hours, not weeks. One of the security enhancements includes code generation by SMS or email. Only the signatory receives the code and can then access and sign the document. All documentation can be “filed” in an easy-to-access, single source.
And digital documents can be integrated into project management and accounting software:
- Change requests
- Lien waiver
- Purchase orders
Construction Monitor: Business Transformation Data
A digital document is a readable, paperless document (invoices, contracts, etc.). An electronic document is pure data, transferred from one computer to another. You need an EDI (electronic data interchange) to “digitize” an e-document (make it readable).
Construction Monitor professionals work with pure data. We format it into something you can use. You receive a PDF (easy-to-read) or CSV (spreadsheet integration) format. But if you don’t use it, you’ll lose it (business leads, that is).