Collaborating in Cyberspace

By Sheila A. Dixon and Kenneth R. Wortley

If you haven’t used a project Website yet, chances are you will. Design professionals are increasingly managing their project communication and collaboration on Websites created for specific projects.

And, while the sites are being touted as efficient and effective tools in project management, they also pose a range of new risks that could entangle the unwary.

These extranets — a broad term that encompasses everything from information sites to application service providers (ASPs) — can be thought of as private, electronic meeting rooms where all team members can go to find the most recent information on their projects.

Most electronic Websites promote project communication and collaboration by allowing team members to store documents and drawings on a central server where authorized members of the project team can access them. Clients, contractors and subconsultants can upload, download, view and comment on documents. On some sites, team members can "subscribe" to selected documents, so that they will be notified if a document has been changed. RFIs, submittals, field reports and payment requests can also be handled through sites. Project Websites often also have their own discussion forums and chat rooms where team members can discuss project-related issues.

Sites often provide a single, current version of every document on a project and permit authorized users to have instant access to information. On some sites, actions on a document can be recorded per user, which may help establish an audit trail in the event of a lawsuit. Discussion forums and team e-mail could mean, the providers tell us, that all project communication is stored as part of the design process.

These sites are either created and maintained by commercial vendors, or managed internally by the design firm. Each method has its advantages and disadvantages; the decision as to which you choose is also influenced by many factors, including your firm’s discipline, the size of your practice, the extent to which the project will be managed electronically and the number of projects you plan to manage through Websites.

New Advantages Mean New Risks

While project Websites may enhance communications and data sharing, there are concerns. Consider the following issues:

Inadvertent increase in project responsibilities — There is the danger that you could be held responsible for all content on the Website. Other participants could also hold you liable for any copyright violations, harassment or other wrongful acts that occur in this virtual space.

Project delays — While a primary motive for managing a project extranet is enhanced and improved communication, it may just as easily become the reason communication breaks down, say in the event of a network failure. Now the risks of delay claims and increased costs are at your doorstep.

Project safety issues — Project safety continues to be one of the most worrisome aspects of your work. There is the possibility that design members may be tempted to suggest construction means and methods on the Website and unintentionally become a participant in safety issues.

Ownership and use issues — Will suppliers and detailers be able to readily use your documents? Are you then liable for their errors in dimensions and details?

Security — Confidential or proprietary information is vulnerable to interception when transmitted via the Internet. Unauthorized access to your data or your client’s can compromise your business or your project. This risk is not just from those firms that are authorized to access the project Website. Hackers, the cat burglars and vandals of the Internet, can do an enormous amount of damage by changing data, stealing valuable information or wreaking havoc with a network.

Data integrity — Every time an electronic file is transmitted or converted from one format to another, there is a chance that it may be corrupted, lost or damaged, resulting in design errors.

Vendor reliability — While there are scores of commercial project Websites currently available, some will eventually go the way of a lot of dot.com businesses. If, two weeks before construction is to begin, the extranet service you selected goes out of business and causes project delays, your client may blame you.

Viruses — Computer viruses can invade a Website and delete or corrupt files before spreading to you, your client, the contractor and others, causing serious damage or, once again, delays.

Copyright or license infringement — Illegal downloading of licensed software or copyrighted documents via the Website can leave participants facing lawsuits.

Personal/employment practices liabilities — Including charges of slander, libel, discrimination or harassment. Whatever you and your co-workers transmit via e-mails, chat rooms, instant messages and bulletin boards may be copied, taken out of context and distributed. Worse, they can be recovered much later and used in a court of law.

Inadequate compensation — Unless your contract provides for it, you may not be adequately compensated for the additional time required to train for, set up and coordinate the Website effort.

Managing Your Risk — Points To Consider

Evaluate your goals. This is an aspect of your business that you can’t provide on an occasional basis. While we don’t advocate that you avoid project Websites, be aware that while this is unquestionably the future of the design and construction industry, we are on the leading edge of the evolution — there is still a lot to learn and plenty of room for mistakes. When your firm chooses to adopt project extranet management depends on its ability to learn and willingness to commit the long-term resources necessary.

Talk to your client. Explain the increased risks and scope issues. Additionally, there are compensation considerations, ranging from time issues to licensing costs, which have to be addressed. Agree on a comprehensive scope of services. Because information moves more quickly and freely between participants on an extranet, the lines of responsibility can become fuzzy. You and your client must agree on who is responsible for what. For example, who will be responsible for coordinating documents? Who will monitor and approve access? Who will archive the project e-history and at what intervals? How long will it be maintained?

Protect yourself by contract. The AIA B141-1997 standard form contract calls for a separate agreement regarding electronic documents. (A sample form is being developed by the AIA Documents Committee.) With your attorney’s help, you and your client should agree on file formats, system and software compatibility, means of transmission, Website selection and coordination.

Clearly establish security guidelines for all participants. Project Websites are prone to abuse, unintentional or otherwise. Communication issues, secure access and document-change histories are all issues that must be addressed up front.

Manage your own electronic files. Set up procedures for transmitting electronic documents: logging all files sent and received, and maintaining backup copies. Test file transfers so you can be sure the files aren’t corrupted when you send or receive them.

Formalize your company electronic communications policy. This policy should address not only employee e-mail practices but the appropriate use of all electronic communications, including extranets, chat rooms, news groups, instant messaging and bulletin boards. The policy should consider ownership, copyrights, software licensing rules, property rights and privacy. Additionally, you’ll want to outline security and virus protection procedures your employees are required to follow.

Check your insurance coverage. Your professional liability insurance policy protects you from claims arising from your negligent acts, errors or omissions in the performance of your professional services. Other kinds of claims may be covered by your general liability policy, specific e-liability policies or even employment practice liability policies. To be sure there are no gaps in coverage for claims arising from nonprofessional, Internet-related activities, call your liability insurance specialist.

All in all, project Websites provide many opportunities to make project management more effective and efficient. It’s crucial, however, that they be used prudently and with an understanding of the risks involved.

Sheila Dixon is the co-author of XL Design Professional’s Contract Guide and author of a number of other XL Design Professional publications. Kenneth R. Wortley is president of Wortley/Poole Professional Ltd, Philadelphia, PA, specializing in professional liability insurance and loss prevention issues for design firms.