Document Control
WHAT IS DOCUMENT CONTROL?
Every building has a design phase, a tender phase, a procurement phase and then a construction phase with the end result being a happy client and a design and building team who are proud of their work (and everyone was made a little money along the way).
This entire process relies on excellent communication, critical process met client expectations managed so everyone gets paid on time and everyone is happy. Within a building process, you rely on designers, materials supply, delivery, and freight companies. Subcontractors being on-site on time and completing there work as per the contract documents, authority processes and sign-offs, progress payments being processed, client response and payments, etc, etc, etc…
The administration of all these processes depends on a system of document control to answer some basic queries contractually of incoming and outgoing correspondence.
Query? Action? Response? Now the content will change but the basic premise – looking back on the historic events of a project we all need to track “how did we get here?”
Document control is basically the tracking of incoming and outgoing correspondence.
The WHY?
Australia is a very regulated country and we also have one of the highest rates of litigation in the world. Basically, the world has become a lot less trusting. So to trade as a designer, builder, and subcontractor it is not a can of if you will need legal help, it is when?
Now think of the client or one step onward – what about the client’s client… They may not have any building education what so ever and all they see is what is published on media.
The other issue is – managing clients’ expectations. People even in the industry have expectations of an end result or a specification. What the client thinks that they are getting and what has been detailed and built, often is not the same… managing the client’s expectation is a ticking time bomb if not managed properly.
The government and the industry have regulated as a result which has created an opportunity for legal and insurance backers. Basically, you can’t trade without their backing.
Before we get into document control I would like to discuss insurances and systems management because the background information is very important.
Basically, a builder is always looking to reduce their costs and therefore be more competitive. A builder needs mandatory insurance to protect the client, now these insurance companies underwriting the builder have certain policies associated with their risk. This rating is directly related to the builder’s management systems and quality assurance. So better the systems & QA – the insurance premiums are better.
And in some cases, if a builder has not any QA – well they are unlikely to get insurance. The rest is academic…
As a builder, the investment of a document control system is a no brainer.
TENDERING DOCUMENT CONTROL
Let’s look forward to an estimator’s end result. An estimator wants to win a tender and hand it onto the contracts team to procure the project. All our expertise, with first and second principles, benchmarking, etc. will mean absolutely nothing if you have a trade which you tender at the wrong price.
Now you have won a tender based on an assumption and now you have a hole to plug. The only way that this hole can be plugged is a procurement. That means everyone shares the pain right down the line by taking a hit in these subcontractors final contract price
Commonly known as “Putting the thumbscrews on the subbies”.
To make up lost profit – the builder has to be more mercenary with the client variations and it sets a path of a really hard project for everyone.
Hypothetical
Basic Contract Law 101 – As builders, we receive a set of tender documents that we price and supply a “bid” based on the understanding of a variety of documents at the time of the tender.
Now let’s say we win said tender and in the process of design development the documents change. Now how do you prove those changes were not a part of the original tender.
Now, this is the start of a potential “You said / We said conflict”.
OK next – what if you sent those tender documents to a subcontractor who is also tendering for another builder. Now, what if – that other builder messed up and sent out half the scope.
Now, what if you know that the subcontract is the best price and he or she didn’t download your tender set and made the assumption that the Builder A & Builder B tender package is the same.
Quite a few problems that need to be sorted – so the fundamental of good document control is the ability to track incoming and outgoing information. Filing and naming documents correctly and making sure that any upgrade documentation during the tender process is processed so all stakeholder is operating of the same tender set.
In document control, you need to be able to track
- What documents were received?
- How they were received?
- Who was the sent?
- Who received the documents?
- And when?
- Then you want to file this information where it can be easily found.
Builders will either live or die via there document control systems.
DOCUMENT CONTROL PROCEDURE
You will get a consistent pattern of my reiterating that in estimating processes – you do all the headline elements of tendering the same every time. A QA or Insurance auditor want to easily see the basic in and outgoing procedures but that also needs to see that the way you file information and name information is consistent. etc. Document control is based on a basic ritual for every project where you have a project name (&/or number) with all the subsections and standard checklists already populated. You have a template of this standard estimating file saved somewhere in systems files and you basically set up a tender file once a go-ahead has been given from your management, boss, etc.
Below is a step by step procedure for a good example of a document control with some time management tips.
Step 1 - Set up a Tender Project
Once the green light on the bid / no-bid, in theory – an RFT has already been given the once over and a basic document review has taken place earlier. The RFT file is then transferred to a tender folder and given a job name or job number. This file is normally set up in a central estimation folder in the following format.
- Client
- Consultants
- Tender documents
- Estimating
- Subcontractors
- Tender submission
- Post Tender Correspondence
- Award / Handover
Step 2 - Second Pass Document Review
Second, pass document review – This is a two-pronged process. The first point is to check that the tender set is complete and this is done by printing out the document register/transmittal and checking every document is correct and the correct amendment number.
Whilst this document review is taking place the estimator would be getting ready for supplier & subcontractors send-outs. This is basically cherry-picking all the pricing schedules, finishing schedules, etc. and highlighting the important areas within trade packages. Through this step, you will now know what trades and suppliers need to be contacted.
Depending on where the project is and how large or complex the project is, the estimator may start to formulate a list of possible subbies.
Step 3 - Subcontractors and Supplier RFQ
The tender documents are then uploaded to a document control system. There are a number of systems available in the market with very similar functions. including the following processes:
- Project creation
- Project data (Such as key milestone dates such as site visits, tender close, etc, tender rules & site-specific procedures, etc)
- Upload tender documents
- Create trades
- Create tender packages (drawings matrix)
- Create trade lists (with input from the contracts team)
- Dispatch trade packages
- Addenda & messaging
- Quote, receive and upload.
Basically, the estimator can see who has looked at the tender set. When the subcontractors have downloaded the documents, etc.
The dispatch of the packages is normally a click of a button, and ongoing addenda are very easy to process. Messaging and correspondence are tracked and then when a quote is returned you can see if the quote has included for any or all of the addenda.
I have use Tender Centre, Project Centre, Bid Contender, Aconex, Hightail, Drop Box, ICloud, BCI Australia, etc).
I can’t really say that one is better than the other as most of the software providers are constantly upgrading and trying to achieve a market edge against their competitors. All I would suggest is to review apples for apples, see what other opportunities are available, the license costs should be reviewed over a five year period as maintenance agreements can be expensive.
Step 4 - Filing of Quotes
In theory, the document control systems basically, want the subbie to upload their quotes on the document control system. This basically closes out the full loop.
The problem with suppliers is that some are not very IT savvy and they still don’t trust these systems. Plus many subbies get nervous using document control systems especially now there are so many available on the market.
What I would suggest – is to give the subcontractors the option of sending their quotes to a separate email address specifically for tenders. i.e. Tenders@####. Now if you get the time – sure the estimator can then upload their quotes up to the document control system post-tender.
Within the tender filing system in subcontractors – I would suggest you have you trades listed in either or both trade codes &/Or trade names. Most building companies have trade codes to procure a package. (6400 – Electrical Subcontractor). Basically, you save all the subbies into like trade files. This means when you open up a trade package you can quickly see how much coverage you may have on a certain trade as a quick glance.
When I send out tender requests I ask that the subbies return their emails in the following naming protocol: Subbies Name – Trade – Project.
When you receive a quote you can also manually change the name of the email and drop and drag the quote into their appropriate trade package.
I would also check that the trade package has included any required schedules plus I often read the exclusion first. If that trade is excluding something that you need to be included within their package – It is best to get right on top of the issue and send out email requests to rectify any scope issues.
Step 5 - Tender Subission
The tender submission is made up of a number of non-priced and priced criteria and is normally filed in a location and dated accordingly. I use a Year / Month /Day / (1) prefix to most of my filing. Strictly speaking, you are changing the document, however, you often have an email of the file named the same so I have used this prefix system that helps you file mass email during tender from consultants clients and subbies.
Getting back to a tender submission – the schedules are combined into a document and then send to the client and possibly followed up with a hard copy document. The submission is a document that is a price based on assumptions and documents at a place in time so all associated estimating documentation, clarifications, schedules are all filed in a similar manner as a submission revision.
All estimating systems are normally locked off as well.
Step 6 - Post Tender
Normally the client will ask questions, chop, and change and there may be a number of rounds after the initial tender submission.
The ritual of the document control for client correspondence, submission revisions, and estimation software updates must all be repeated every time there is a query from a client.
The hope is that your company is the last at the table discussing contract signing.
Now the contract signing could reflect a number of revisions. All these changes and negotiations need to be tracked.
Meanwhile – as you get closer to winning the tender in the post-tender rounds. As your competitors drop off the race – their subbies that may not have submitted a price to your tender request will slowly filter through to you. (This is where your relationship can be developed for the next tender and if you had a trade that wasn’t a cluster – these additional prices filtering through could close that risk element.)
If you are really lucky – that rogue price could be the Bolter (The Best price in the market which is fully compliant). When an estimator gets close to winning a price – during the post-tender rounds there is extensive checking and cross-checking that your number is right.
Step 7 - Contracts Handover & Record Keeping
If you win a project? (Contract Handover)
The time delay can be quite a long period of time. But you now need to hand over a summary of “How We Got Here”. This is a start to finish of the tender process, addenda, changes to the scope during tender negotiation and all the headline in the contract conditions that affected estimating decision. The opportunities and the risks and also the subbies who helped win the project that should be given special consideration. The estimator normally “drops a budget” which is a trade coded document that sets the budgets for the accounts department and the financial management of the project.
If you wish to read more about
If you lose? (Record Keeping)
Sometimes losing against a competitor is the best way to analyze where you went wrong and also where your competitor is doing things smarter or cheaper than you. When you win project information gets filtered to you over the life of the project however often you get nothing to see where your price sat in the mix.
However, if you lose – you learn everything from a number of sources. Sometimes you can strategically lose a tender to find out more about a client and other builders. Strategically you can apply that knowledge against then on a bid that you are really interested in.
But either way, an estimator post-tender gets busy.
If you wish to read more about
Tender Process – Click Here