Data Management Developments in Construction Disputes

Data Management Developments in Construction Disputes

Data Management Developments in Construction Disputes
November 11, 2024

The construction industry is no stranger to complexity. As projects grow larger and more intricate, involving multiple stakeholders across various jurisdictions, the amount of data generated has surged exponentially. This explosion of data presents both opportunities and challenges in the realm of construction disputes. Effective data management is no longer a luxury but a necessity for navigating the complexities of modern construction litigation.

During a recent panel discussion, experts delved into the evolving landscape of construction disputes and the critical role of data management. The conversation highlighted how technological advancements are reshaping dispute resolution strategies, from evidence gathering to adopting advanced analytics. Drawing insights from this discussion, let's explore the developments in data management within construction disputes and how they are influencing outcomes.

Meet the Panel
 

Guillaume Hess
Guillaume Hess, Special Counsel, K&L Gates
Jackie Michalek
Jackie Michalek, Director, Project Management, TransPerfect Legal
Steven Sanabria
Steven Sanabria, Manager, Forensic Technology, TransPerfect Legal
Al-Karim Makhani
Al-Karim Makhani, Vice President, TransPerfect Legal

The Importance of Electronic Data in Construction Litigation

Electronic data has become the cornerstone of construction litigation. The ability to efficiently collect, manage and analyse vast amounts of data can significantly influence the outcome of a dispute. Proper data management ensures that evidence is preserved, legal obligations are met and disputes are resolved more effectively.

‘Documents hold the highest probative value in legal disputes’, emphasised Guillaume Hess, Special Counsel at K&L Gates in Doha. ‘If you don't have documents to back up what you're trying to explain to the tribunal, your claim is very unlikely to succeed’.

Comprehensive electronic records reduce ambiguity and facilitate early settlements. When all parties can access clear, organised data, misunderstandings are minimised, and disputes are more likely to be resolved without prolonged litigation. Moreover, maintaining proper electronic records is often a contractual obligation in construction projects. Failure to do so can result in breaches of contract and further complicate disputes.

However, the sheer volume of data generated can be overwhelming. Modern construction projects produce immense amounts of electronic data, including emails, instant messages, CAD drawings and more. Managing this data effectively is crucial to prevent escalating costs and delays associated with sifting through irrelevant information.
 

New Sources of Data to Be Considered

The evolution of technology has introduced new sources of data that must be considered in construction disputes. Messaging applications, mobile devices, and specialised project management systems are now integral parts of project communication and documentation.

Guillaume shared an experience highlighting this shift: ‘We sometimes get instructions from a contractor to a subcontractor to perform a particular type of work via WhatsApp. But those WhatsApp messages obviously form part of the project data, which you need to review when trying to understand what happened on a project’.

Mobile devices used by project staff contain valuable data such as emails, messages, images and call logs. These devices often hold critical information about onsite activities and communications. Additionally, project management systems like Aconex store vast amounts of project-related data, including documents and correspondence. Extracting data from these proprietary systems can be challenging but is essential for a comprehensive understanding of the project.

Specialised files and formats, such as CAD drawings and BIM models, are also crucial. Reviewing these technical documents requires specific tools capable of rendering and interpreting complex data. Visual data, including photographs and drone footage, adds another layer of complexity but is invaluable for providing evidence in disputes.
 

Accessing Data: The Role of Forensic Specialists

Given the diversity and complexity of data sources, forensic specialists play a vital role in accessing and managing data in construction disputes. They employ specialised techniques and tools to ensure data is collected, preserved and analysed effectively.

‘One of the most important things to consider is metadata’, noted Steven Sanabria, Manager of Forensic Technology Consulting. ‘When you look at a file being created – who authored that file, who received that file, who modified that file – that's all data that gets passed along when files get moved over’.

Forensic experts use industry-standard tools to collect data from various sources while maintaining its integrity. They ensure that metadata is preserved and that the chain of custody is documented, preventing data spoliation that could undermine the credibility of the evidence.

Steven described a challenging case: ‘We were called in to collect multiple sources, including Office 365 emails, server data and mobile phones. The total data collected amounted to about 3.6 terabytes, which comprised over 8.5 million documents’.

Handling such volumes requires efficient data management strategies. Forensic specialists assist in culling irrelevant data using filtering techniques, analytics and AI-powered tools, reducing the dataset to a manageable size for legal teams to review.
 

Strategies and Techniques for Data Review

Effectively reviewing diverse data types requires strategic planning and advanced technologies. Early case assessment and thorough planning are essential to define the scope and goals of the review process.

‘The most important part of the review process is going to be our most expensive part’, highlighted Jackie Michalak, Director of Project Management. ‘Typical industry standard methods only reduce initial data sets by 80%. The more complex and unwieldy the data, the more sophisticated tools and workflows you need to leverage.’ 

Data culling techniques, such as applying date ranges, keyword searches and deduplication, help eliminate irrelevant data. Advanced filtering methods, like domain analysis and metadata filtering, further reduce the dataset.

Utilising analytics and AI is increasingly important to optimise lawyers’ time reviewing the docs. Pre-review analytics can identify patterns and group related documents, while AI-powered tools can assist with image recognition, predictive coding and continuous learning to prioritise relevant documents. Image recognition that can automatically detect the difference between a bridge and a dog can further save review time.

Jackie discussed handling specialised data types: ‘When we think about the CAD drawings, those don't have a lot of meaning for us on the forefront of being able to open them on our machines. Being able to look at that CAD drawing – there are some platforms out there that can do that’.

Specialised review tools capable of rendering technical documents within the review interface are essential. Visual data analysis tools allow interactive exploration of visual data, such as 3D models, enhancing understanding and presentation.
Collaborative review strategies involving interdisciplinary teams also improve efficiency. Legal professionals work closely with technical experts to interpret complex data, and segmented workflows allow specialists to focus on specific data types.
 

Future Developments in Data Management

The field of data management in construction disputes continues to evolve, with emerging technologies promising further advancements. The integration of advanced technologies like AI, augmented reality (AR), virtual reality (VR) and blockchain could transform project management and legal proceedings.

Guillaume expressed optimism about these developments: ‘The hope for the future of construction disputes is the more systematic use of modern technology. Given the nature of construction projects and the volume of data that is generated, efficiency can only be achieved if you rely on modern technology’.

Evolving legal practices, such as remote proceedings and virtual collaboration, are likely to become standard. The COVID-19 pandemic accelerated the adoption of virtual hearings and demonstrated their effectiveness.

Greater collaboration amongst legal teams, forensic specialists and technologists will further strengthen dispute-resolution strategies. By embracing these developments, legal professionals can navigate the complexities of modern construction disputes more efficiently, reduce costs and achieve better outcomes for their clients.
 

Conclusion

Effective data management is no longer optional in construction disputes – it's imperative. The challenges posed by the proliferation of data require strategic planning, collaboration and the adoption of advanced technologies. As projects become more complex and generate more data, managing that data effectively will be a key differentiator in fast, successful dispute resolution.

By integrating legal expertise with technological innovation, we can ensure that the resolution process is not only efficient but also just. The future of construction litigation lies in embracing these developments and adapting to the ever-changing landscape of data management.
 

Blog Info
By Al-Karim Makhani & Reuben Miller