How to reduce cost and risk in capital projects

According to McKinsey, nine out of ten large infrastructure projects go over budget. In 73% of the cases, this is because of poor project execution….

Jens Friehmelt profile picture
Jens Friehmelt

December 4, 20194 minute read

Descriptive text explaining the contents of the image.

According to McKinsey, nine out of ten large infrastructure projects go over budget. In 73% of the cases, this is because of poor project execution. And what’s at the center of poor execution? Poor document management. In one study, three-quarters of respondents said that project document issues caused overruns on their projects, and 25% said that poor documentation had led to construction delays.

Effective document management lies at the heart of successful construction and capital projects. From initial design documents to work orders to contracts to compliance documents, every stage in the process is dictated by the quality of its documentation. Here are six key benefits of effective document management:

1. Reducing waste and risk

With large projects involving thousands of documents, it is all too easy for the wrong set of documentation to be used. This results in the wrong work taking place because of inaccurate information. Reworks are costly and wasteful and lead to the risk of project overruns and penalties. A central repository provides a ‘single source of the truth’ for all documents, where all documents are kept up-to-date and are far easier to locate and access.

2.  Improving version control

Construction work takes place in the field, which means that mark-ups and changes to documents take place where they work. Engineering document management solutions give workers mobile access to the documents they need and allow them to mark-up and amend the document to reflect their activities. In this way, document quality and integrity is maintained throughout its lifecycle.

3. Keeping projects on schedule

Inefficient processes – whether manual or digital– add cost and delay. Without effective process state control and progress reporting the project is slowed down as project managers and document controllers don’t know if documents of a delivery package or project tasks have been accomplished, reviewed or approved by the appropriate people.

4. Building Information Modelling (BIM)

Engineering companies and departments of owner/operators are increasingly introducing BIM to improve efficiency in collaboration and quality in delivering construction projects. Engineering Document Management is an important pillar in the BIM methodology. OpenText™ Extended ECM for Engineering is BIM compliant by supporting model information in specific attribute categories, process state and expediting information and by providing interfaces to project management software solutions.

5. Increasing collaboration

There are many stakeholders involved in modern construction and engineering projects. Owners, contractors, sub-contractors and authorities need the right information at the right time. In large capital projects, the team is likely to consist of a number of disciplines from a number of international companies. Secure mobility and accessibility is key.

6. Boosting profitability of the project

The financial success of an engineering or construction project depends on the timely submission and acceptance of documents at all the parties involved. This is particularly true at the project handover stage. If the document quality is poor or the information inaccurate, the project may not be accepted–leading to costly rework and potentially even more costly contractual penalties.

The benefits of enterprise document management

Enterprise document management solutions – such as Extended ECM for Engineering – provide a powerful, central document repository developed for the specific needs of engineering and construction projects. Extended ECM for Engineering provides a single, authoritative repository for storing and controlling engineering and construction documents and work processes. With advanced document and workflow controls, xECM for Engineering facilitates efficient and secure collaboration with interdisciplinary teams and suppliers.

Leading through best practice

If you’re planning an initiation and investigation project to establish the scope and high-level design of your Extended ECM for Engineering project, we offer an exciting Proof of Concept service. With the service, you have access to pre-configured prototype systems that can be adapted to your requirements. Without installing the system or purchasing licenses, you can identify how your organization can benefit from this solution. The prototype can then be easily adapted for the implementation program.

Share this post

Share this post to x. Share to linkedin. Mail to
Jens Friehmelt avatar image

Jens Friehmelt

Jens is Senior Manager in OpenText Professional Services EMEA leading an international team which combines multiple OpenText technologies to serve customers with best practice solutions for the Engineering, Construction and Maintenance processes. His focus is on engineering document management in capital projects as well as maintenance and as-built documentation.

See all posts

More from the author

Optimize success and minimize risk on engineering implementations

Optimize success and minimize risk on engineering implementations

Anyone who has ever been involved in a large-scale IT program knows just how hard change is. The sad truth is that most large-scale programs…

3 minute read

ECM is key for Engineering document control

ECM is key for Engineering document control

It’s estimated that the average company faces 800 hours of downtime each year. With an hour of downtime costing as much as $540,000, inefficiencies and…

4 minute read

Stay in the loop!

Get our most popular content delivered monthly to your inbox.