AEC firms, the Building Safety Act, and the risk of litigation

The Building Safety Act 2022 (BSA) was brought into effect in 2023 with the Building Safety Regulator (BSR) overseeing ‘the safety and performance of all buildings’ with a strong emphasis on ‘promoting competence and organizational capability within the AEC sector.’ 

By placing focus on the administrative side, the BSA is aiming to capture the entirety of a built asset's life cycle through what is known as the ‘golden thread of information.’

By exploring the BSA and the golden thread, we will highlight why they are so important to consider and what litigation risks they can help firms avoid.

What are the key impacts of the Building Safety Act on AEC firms?

The BSA 2022 was launched following the 2017 Grenfell Tower tragedy and came into effect in April 2023 with the aim of reforming building safety regulations. 

A key impact of the BSA was the implementation of ‘duty holder responsibilities’, which places an individual at the center of accountability for a project. By requiring someone to sign off on the monitoring and maintenance of the project activity in regard to building regulations, the BSA is adding another layer of security in terms of ensuring safety and mitigating risk.

The idea of mitigating risk and ensuring accountability is further solidified through the ‘golden thread of information’, which is now a core tenet of the BSA for AEC firms. By making the maintenance of the golden thread a paramount issue, AEC firms must now be able to prove that there is adequate and efficient project information management in place.

What do AEC firms need to change?

The new BSA means a culture shift for many AEC firms, as the new regulations require active engagement across practices to ensure the correct information is captured and responsibilities fulfilled. 

In order to make this shift successful, the changes must be implemented from the top down, with business owners accepting accountability and ensuring that the best quality practices are being followed. 

When it comes to implementation of the golden thread in particular, one of the key roadblocks is the lack of visibility that comes with document management and putting it into practice. Without clear visibility, encouraging and maintaining sufficient document management becomes impossible, with the golden thread becoming a secondary thought—when it should be a primary concern.

Why is the golden thread so important and what does it mean for businesses?

The golden thread of information is now an essential factor for AEC firms in light of the BSA. The ability to have readily available access and searchability of archived projects is key to avoiding litigation and bypassing risk elements. 

The golden thread acts as a way to future-proof projects. The move to digital file storing versus physical storage has left a void in the organizational aspect of document management and the golden thread is highlighting this space and the errors it can lead to. 

This is important to underline as some AEC businesses may be unaware of the full extent of the new requirements and how document management is now at the forefront of best quality practices. 

If a good quality management system is in place, there is a higher chance of maintaining the golden thread of information, as there is greater consistency in terms of workflow and a reduction of human error. By utilizing a system that involves automatic naming and storage functions, finding any information relating to a project becomes a simple task—especially when it’s consistent company-wide. 

What litigation risks arise due to the BSA?

AEC firms are at risk for litigation if they do not ensure that each step of the BSA is upheld. One area of which is the golden thread, a step that is easily overlooked or unmanaged by businesses. 

If there are no clear document management practices in place and a risk claim arises, countless hours will be spent going through past emails, folders, communications, and more. Even if there is a manual folder structure, there is no guarantee that each employee and vendor has been compliant, meaning they will all need to be searched and checked regardless. 

Other potential issues include outdated technology (e.g. broken computers, damaged storage), loss of data access (e.g. the person associated has left the company and taken the information, lead contractor withdrawing access), and the company raising the claim blocking off access to the communication. 

Without a structured way of storing and accessing the information necessary, AEC firms can very quickly become exposed to potential litigation—something that the BSA is trying to help firms avoid. 

Many AEC firms think it's easier to pay off financial claims than reorganizing/implementing a system from the beginning. However, this isn’t always the case.

Litigation risks can be mitigated through the employment of a structured system within the business, ensuring that access to information is clearly available and easy to search. 

How can document management help?

The best way to mitigate litigation risk associated with the BSA, and specifically the golden thread, is through utilizing a proficient document management system. A document management system provides a central archive for firms to access, store and manage files electronically. 

An ideal system should include:

• Long-term dependable storage
• Easy searchability
• Efficient document retrieval
• Captures all sent and received information related to a project No way to hide access in case of litigation
• Automatic file naming that adheres to project standards

By implementing a system with these capabilities, you and your business will be future-proofed against future legislation, as the requirements of the BSA, the golden thread, and additional acts are only going to become stricter and more thorough.

Why is selecting a good document management service so essential?

Selecting a good document management software is essential as risk claims are settled on gray areas. By eliminating any gray areas, the chances of winning fee claims are higher and both the firm and the client are better protected.

Atvero is a great example of a quality document management system that matches these essential capabilities. Built upon SharePoint with a Microsoft 365 integration, Atvero is specifically tailored for AEC clients. 

This easy-to-use document management system is devoted to helping clients adhere to the BSA and maintain their golden thread. Built on SharePoint - the world-class productivity system -  Atvero inherits Microsoft’s future-proofing data retention policies.

In fact, with recent Microsoft developments such as project archiving or Azure storage, Atvero can help AEC firms retrieve historical information decades into the future.

Systems such as Atvero play a crucial role in mitigating the challenges posed by the BSA, providing a seamless document management system that fosters a sense of confidence and reliability in its users. 

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