Maintaining Job Files
by R. Scott Rasmussen

One of the things I discuss a lot with clients in construction defect cases is their job files. A job file is all the documents a subcontractor or general contractor receives as a part of any work they perform as a part of doing construction.

Unfortunately, because of construction defect cases, it has become very important that a complete set of all job file documents be kept. For instance, many times subcontractors will not keep a set of plans they may receive from the general contractor. Many times two, three or even four sets of plans can be used for one job. However, a subcontractor may only receive one set and be unaware of other sets that were used before, or after, their work is done. Many times, plans become critical in a case.

Most subcontract agreements require subcontractors to follow the plans exactly. However, when the lawsuit is filed, the general contractor’s argument includes all four sets of plans. If the subcontractor can show which set of plans they received, this can, in some instances, reduce their exposure immensely. I suggest that all subcontractors and general contractors follow these basic rules in preserving job files.

1. Have a Plan. Call your system whatever you want, just make sure you have one. Discuss this with your office personnel and make sure they know the importance of sticking to the plan. Make sure all of your managers, job superintendents and others are aware that all documents they receive must be placed in the job file system. Many times on-site employees will receive documents. But for a some reason they never get into the job file. Make sure this doesn’t happen to you. It could save a lot of money in the long run.

2. Save Everything I know it sounds burdensome, and it is. But in every case it seems that the lack of one document could have saved a lot of time, frustration and money if it was still around. Also, by keeping everything, a party in a lawsuit can argue they never received something. For instance, if all of the change orders you have in your job file are signed, and another party has an unsigned change order, you could make the argument that the unsigned change order was not something you did on a project. This would decrease your exposure in a case.

3. Organize The Files. Make sure you have documents kept in such a way that their location is easy to determine. You don’t have to go overboard with detail, just keep things in a way that would be easy for anyone to follow. Organizing documents by type and date are usually the easiest.

4. Keep Them Safe. Nevada’s statute of repose allows subcontractors to be sued up to ten years from the date they did the work. Finding storage for all those documents for up to ten years can be a hassle, but it is really important. Take it seriously, and set aside or rent an appropriate place to store documents.

5. Keep With Your System. Many times people start something that is good for them but then lose interest. Kind of like losing weight. The same could be applied to maintaining job files. You can’t lapse in and out of your system. You need to have a uniform system that is going to last. If not, your company may not last. If you need additional personnel in order for it to be done properly, make it happen. The truth is that insurance and the costs of these lawsuits is skyrocketing. Your maintenance of job files protects your company and you as well. If all of the lawsuits stopped tomorrow that is no guarantee they would not start up again in a year or two. We all hope that these lawsuits will not continue to be the problem they have been here in Nevada. However, many times subcontractors and general contractors can make it that much more difficult to get adequate relief because of the lack of a well-maintained job file.

I hope this information has been helpful. If you ever have a question about your job file documents, please give me a call.

From March 2002

From The Construction Zone

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