How Long Should You Keep Construction Project Data?
Lawsuits surface years after project completion. Without the right records, you lose. A proactive document retention strategy for your projects is your best defense.
$60.1M
Average construction dispute value in North America
40%
Year-over-year increase in construction dispute values
4-10 yrs
Typical statute of repose range across US states
30%
Of construction projects end in a formal dispute
The Hidden Risks of Poor Document Retention
Construction litigation can emerge years after a project is complete. Without the right documentation strategy, owners face significant financial and legal exposure.
The #1 cause of construction disputes is errors and omissions in contract documents — highlighting the critical importance of proper documentation.Source: Arcadis 2025 Construction Disputes Report
Lost Documentation
Without proper retention, critical project records can be lost or destroyed before litigation arises, leaving owners without evidence to defend claims.
Legal Exposure
Construction defect claims can surface years after project completion. Missing documentation can result in unfavorable judgments and costly settlements.
Statute Surprises
Each state has different statutes of repose. Disposing of documents too early can leave you vulnerable during the entire liability window.
Contractor Disputes
Change orders, RFIs, and daily logs are essential for resolving disputes. Without them, owners often bear the burden of proof.
Real Stories. Real Consequences.
These aren't hypotheticals—they're real experiences that show why proactive document retention isn't optional.
Galen Hair
Managing Partner, Insurance Claim HQ
The $150,000 Puzzle No One Wanted to Solve
When a commercial building burned down with zero documentation, Galen’s firm faced what he calls “forensic reconstruction”—rebuilding the history of a building without a single document to prove anything.
The Cost of Missing Documents:
- 300-400 hours of attorney time hunting down contractors and witnesses
- Insurance adjusters assumed "low contractor grade" materials from the rubble
- Client had to accept a lower settlement due to weak evidence
Dr. Greg Bower
School Superintendent, Rural Texas
The Story Behind OI Vault
Dr. Bower was standing in a river fishing when he got the call: a tornado had just hit his school district. Every critical document—insurance policies, emergency procedures, construction records—was in a binder behind his desk.
What Was Lost:
- Insurance policies needed to file claims
- Emergency procedures for crisis response
- No baseline to prove pre-storm conditions
He drove straight back and went in to retrieve the documents—risking everything to recover what should have been safely stored in the cloud.
This experience became the catalyst for OI Vault—ensuring no school district or property owner would ever face this situation again.
State-by-State Requirements
Hover over any state to view document retention periods and relevant statutes.
- <7 years
- 8-11 years
- 12+ years
Why Smart Owners Prioritize Document Retention
Proactive document management is not just about compliance—it is a strategic advantage that protects your investment and strengthens your position in any dispute.
Legal Protection
Maintain defensible documentation that protects your interests throughout the entire statute of repose period.
Organized Records
A structured retention policy ensures critical documents are accessible when needed, not buried in disorganized archives.
Cost Savings
Proper documentation can prevent or quickly resolve disputes, saving significant legal fees and settlement costs.
Stakeholder Confidence
Demonstrate due diligence to insurers, investors, and partners with a comprehensive document management approach.
Key Documents to Retain
Contracts and amendments
RFIs, change orders, and submittals
Daily logs and progress reports
Inspection reports and certifications
Payment applications and lien waivers
Correspondence and meeting minutes
As-built drawings and specifications
Warranties and guarantees
Insurance certificates and bonds
Key Terms Explained
Understanding these legal and industry concepts is essential for protecting your construction investments and navigating potential disputes.
Discovery
What is it?
Discovery is the formal legal process where parties in a lawsuit exchange information and evidence before trial. During discovery, attorneys can request documents, conduct depositions, and send written questions (interrogatories) to the opposing party.
Why it matters for construction owners
For construction owners, discovery is when your document retention practices are put to the test. If you cannot produce requested documents—contracts, change orders, inspection reports, correspondence—you may face adverse inference rulings where the court assumes missing documents would have been unfavorable to your case.
Legal Hold
What is it?
A legal hold (also called litigation hold) is a directive to preserve all documents and data that may be relevant to pending or anticipated litigation. Once a legal hold is issued, normal document destruction schedules must be suspended for the affected materials.
Why it matters for construction owners
When a construction dispute arises or litigation is reasonably anticipated, you must immediately implement a legal hold. Failing to preserve relevant documents after a legal hold is triggered can result in sanctions, adverse jury instructions, or even case dismissal. This is why having organized, accessible records is critical.
Document Retention
What is it?
Document retention refers to the policies and practices an organization uses to maintain, store, and eventually dispose of records. A document retention policy specifies which documents must be kept, in what format, for how long, and how they should be destroyed when no longer needed.
Why it matters for construction owners
Construction projects generate thousands of documents. Without a clear retention policy aligned with your state’s statute of repose, you risk either destroying evidence prematurely or incurring unnecessary storage costs. A well-designed policy protects you legally while managing expenses.
Risk Mitigation
What is it?
Risk mitigation encompasses the strategies and actions taken to reduce the likelihood or impact of adverse events. In construction, this includes contractual protections, insurance, quality control, safety programs, and documentation practices.
Why it matters for construction owners
Proper document retention is a core risk mitigation strategy. Complete project records allow you to demonstrate compliance, prove contractor responsibilities, support insurance claims, and defend against unfounded allegations. The cost of maintaining good records is minimal compared to the cost of litigation without them.
Statute of Limitations
What is it?
A statute of limitations sets the maximum time after an event within which legal proceedings may be initiated. Once this period expires, claims are generally barred regardless of their merit. The clock typically starts when the injury or damage is discovered or should have been discovered.
Why it matters for construction owners
Construction defect claims often have statutes of limitations of 2-6 years from discovery. However, because defects may not be discovered until years after completion, the statute of limitations alone does not determine how long you should retain documents. You must consider this in conjunction with the statute of repose.
Statute of Repose
What is it?
A statute of repose sets an absolute deadline for filing claims, measured from a specific event (typically substantial completion of construction) regardless of when an injury or defect is discovered. Unlike statutes of limitations, the statute of repose runs even if the plaintiff has not yet been harmed.
Why it matters for construction owners
The statute of repose is the critical benchmark for construction document retention. It represents the outer boundary of your legal exposure—once it expires, claims related to that project are barred. Your retention policy should extend beyond this period (typically by 3 years per NSPE recommendations) to ensure you have documentation available throughout any potential litigation.
Our Solutions
Purpose-built tools designed to protect your projects from day one through decades of document retention that reduces the Owner risk.
Manage Projects with Confidence
The comprehensive construction management platform that keeps your entire team aligned. Track progress, manage budgets, coordinate schedules, and maintain complete documentation throughout every phase of your project.
- Real-time project tracking & reporting
- Budget management & cost control
- Team collaboration & communication
Protect Your Documents Forever
The only document management system built specifically for project teams. Securely store, organize, and retrieve critical project documents throughout the entire statute of limitations period and beyond.
- Long-term secure document storage
- Automated retention policy compliance
- Instant search & retrieval
Don't Wait Until It's Too Late
Learn how Owner Insite helps construction owners protect their projects with robust document management strategies before disaster strikes.