Between the many job sites, projects, and schedules, there are plenty of moving parts in construction — you don’t need to add disorganized documents to the list. Unorganized documents can cause chaos and inefficiencies for construction companies, especially if information is lost or difficult to find. 

Implementing effective document organization strategies can enhance project management, improve communication, and reduce costly errors in construction.  

Why Document Organization Matters 

Organized documents don’t just keep your desk or computer desktop clean; they impact your entire organization and set the foundation for smooth, efficient operations. Here are three key ways organized documents impact companies: 

Project Management 

Construction companies and back office staff have to balance numerous projects at once. Good organization ensures that information is tracked correctly, and everything runs smoothly. Organized documents streamline project tracking and reporting, making it easier for employees and supervisors to view a project’s status accurately. Organized documents also improve the accuracy of cost estimation and budgeting because all the information is stored neatly. Instead of hunting down time cards and the cost of equipment, teams can easily find the information they need and trust it is correct. 

Communication 

Organized documents keep everyone on the same page with the most current and accurate information. When team members and stakeholders can find the information they need, they can coordinate better for faster and stronger results. Organized documents lead to clearer communication of project goals, updates, and changes. 

Risk Management 

When documents aren’t organized, information can slip through the cracks, be processed multiple times, or be misplaced and miscalculated. Those mistakes can lead to costly errors and solutions by construction companies. Organized documents also enhance compliance with legal and regulatory requirements and make it easy for teams to find the correct data for an audit or their future reference. 

Common Challenges in Document Organization 

Just because document organization is important doesn’t mean it’s easy. Construction companies face many challenges as they try to organize their information, including these common challenges: 

• Handling a large volume of documents generated by construction projects. 

• Working with diverse and complex documents, including contracts, permits, drawings, and more. 

• Coordinating among various team members, stakeholders, and external parties 

• Ensuring all contributors follow consistent documentation practices. 

• Tracking revisions and versions of updated documents. 

• Managing document updates and ensuring everyone has access to the latest versions. 

Best Practices for Document Organization 

How can you overcome the challenges of document storage to create an organized system? Here are some top tips for construction companies: 

Implement a Document Management System (DMS) 

A document management system is designed to help your company be as organized as possible. These systems tap into cloud storage and offer features like version control, security features, and customizable hierarchies. Instead of creating your own system, a DMS can give you a head start. 

Create a Standardized Naming Convention 

Consistent naming conventions ensure everyone can find the correct information and it isn’t hidden because someone labels things differently. A standardized naming convention also makes it easy to track document changes and look at past versions, especially with files for the same type of project or the same client. 

Every detail matters in a naming convention, even down to abbreviations and how to arrange the date.  

Consider these examples of effective naming schemes for construction documents: 

• Client_Contract_DDMMYY 

• MM-DD-YYYY_Client_Document 

• YYYY_Client_Document_Phase 

Establish a Clear Folder Structure 

Similar to creating a standard naming convention, you should also have a clear folder structure and hierarchy to know where things go. Just like you wouldn’t throw a physical folder anywhere in a filing cabinet, you also shouldn’t do that with a digital file. The most effective document storage systems arrange files by project, phase, or document type and break things down in a logical and intuitive hierarchy that starts with the largest categories and works down to smaller details. 

Examples include: 

• Client-Year-Project-Phase-Document 

• Year-Client-Project-Document 

• Document-Client-Year-Project 

Utilize Version Control and Tracking 

As documents get passed around various teams and stakeholders, they inevitably are edited and changed. Giving everyone access to the most recent version of a document is crucial to keeping everyone on the same page and ensuring some teams aren’t working off outdated information. Tools with version control automatically track the document's updates, making it easy to track changes and revert to previous versions if necessary. 

Ensure Document Accessibility and Security 

To be effective, documents must be accessible and secure. It may sound like the two things can’t coexist, but strong DMS platforms set appropriate permissions and access controls. With them, the people who need the documents have easy access, and the people who shouldn’t access them can’t. 

Train and Educate Team Members 

The best document organization system isn’t effective if people don’t understand it or know how to use it. All team members who have access to the documents need to be trained on how to use the system and why it matters. Even one person who doesn’t follow the structure can throw things off for everyone else. 

For the best results, training on the use of DMS and document organization strategies should be provided. All team members should know how to search for documents in the DMS and file new documents they create, access, or edit. 

Perform Regular Audits and Reviews 

Document organization isn’t a set-it-and-forget-it system; it requires regular updates and evaluation. Conduct periodic audits to ensure document organization standards are met. Then, you can use the findings to adjust and improve document management practices. You may find that the folder structure isn’t effective or that you need to add another step to your document review process. Regular reviews keep you on track and ensure your documents are properly organized. 

Leveraging Technology for Document Organization 

Document organization may seem overwhelming, but you don’t have to do it alone. Technology is a powerful organizational tool — when leveraged properly. 

Popular document management tools like Procore and PlanGrid help construction companies stay organized and compliant. As an added bonus, these systems integrate with other construction management software, like the accounting and CRM systems, for faster document sharing and stronger data. 

Cloud-based storage allows for customizable access, so people who need to access a document can easily view, edit, and collaborate with others. These solutions also ensure data security and compliance. 

Construction happens at multiple job sites, so it’s important to be able to access and view documents on the go from mobile devices. When looking at mobile document management apps, look for systems that are easy to use and that don’t sacrifice access and security for mobile functionality. 

Now is the time to get your documents organized. Book your demo to see how hh2’s Document Flow helps you easily organize and manage your financial documents.