Why the Paperwork Matters

Most contractors don’t go into the construction business because they love doing paperwork. Whether it’s processing payroll, preparing contract documents, or completing some other written submission, they see written documentation as a nuisance. Because almost all of the most successful contractors do an excellent job at documenting their files, a slight shift in mindset might be the difference between getting to the next level and just continuing to plod along though.

To be clear, I am not asking anyone to love paperwork. Instead, I am suggesting that it be seen as a difficult but necessary task that has to be tackled. Taking on these tougher assignments is what successful people do; and paperwork matters for your business for a variety of reasons.

Paperwork represents the rules of the game. Contract documents allocate risk for specific projects. Employment documents set out job responsibilities, what is acceptable in terms of behavior at the company, and how people get paid for their work. Not only does paperwork provide the operational roadmap, the documents set standards that provide helpful guard rails based on intent when the situation does not quite fit into the paperwork.  

Unfortunately, claims and disputes are also an all too regular reality of doing business these days. Documenting your file is critical to making sure the evidence is clear and your company is protected in these situations. Written documents prepared contemporaneously to when the events at issue happened are better forms of evidence than oral testimony recalling what occurred during a deposition. Having such documentation both puts you in a better position if a claim comes up and serves to prevent claims in some instances by allowing opposing parties to see that the evidence clearly favors your side.

Finally for purposes of discussion here, there is great value in keeping good records for purposes of institutional knowledge. Most issues a contractor faces have come up in a similar form in the past. Having a written record to refer back to can provide valuable data that assists in finding a better answer.  Review of paperwork prepared in relation to past situations in a wholistic manner can also help the company to recognize both good and bad patterns from which it can learn.

In closing, don’t dread paperwork. See it for what it is – an opportunity to get ahead. Spend that time, learn to get efficient with it, and make sure it gets done. It will make you better at your job and strengthen your company in immeasurable ways.