Construction Claims

Create a Legally Defensible Document Retention / Destruction Policy

My February 2015 NARI Legal Corner guest blog titled Build a Record You’ll Be Proud Of, addressed the importance of recordkeeping for contractors and provided practical guidelines for creating project records.  It showed that the successful management of construction projects requires proper management of a company’s records and other “information assets.”  Information asset management should be viewed as a key component of every contractor’s overall risk management program. The article concluded by recommending that organizations develop and implement a document retention policy and legal retention schedule, which together allow old records to be destroyed in a legally defensible manner. This article describes an approach to managing and retiring (destroying) information assets that is based on industry standards and best practices. A document retention policy is really a document destruction policy Information as Assets Broadly defined, information assets include not only project records, accounting records and official documents but all other information holding any value or representing any risk to the organization.  Information assets include anything that is recorded or stored such as email, instant messaging, voicemail, databases, digital photos or any type of document, whether printed out or not.  Assets in the form of Electronically Stored Information (ESI) also include …

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Build a Record That You’ll Be Proud Of

Coliseum

The management of construction projects involves the management of information. Frequently, decisions need to be made on-the-fly, before the written information necessary to document the decision is available.  Under time pressure and with no reliable systems in place, project documentation (building a record) is regularly neglected. Unfortunately, a poorly built record can have serious negative legal, and financial consequences. Why Build a Record? One good measure of the success of a construction project is whether the completed building meets the needs and vision of the owner. Even small projects require a written proposal containing references to plans and specifications.  Without good documentation, there is a greatly increased risk that the customer’s vision may not be converted to reality, leading to a dispute.  A key attribute of project documentation is the extent to which it enables any given stakeholder (general contractor, subcontractor, designer, supplier, owner, lender, insurer) to protect its own legal and financial interests during the course of, and after the project. A poorly built record can have serious negative, legal, and financial consequences. If a dispute arises for any reason (payment, workmanship, change orders, etc.) the first thing that lawyers need to see is the record – for the …

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