The construction industry is no stranger to complying with regulations from local, state, and federal governments. From health and safety regulations to policies like GDPR and CCPA regulating data privacy protocols, construction managers are continuously integrating new policies into their workflows. In this post, we’re going to take a look at the role of construction management software in staying compliant with various regulations.

What is regulatory compliance in construction management?

Regulatory compliance in construction management refers to the requirement to adhere to various codes and regulations, such as building and fire codes, health and safety standards, environmental standards, data privacy regulations, and many more. It’s a big challenge in the construction industry, especially for companies operating in multiple states or countries, where the finer details of regulations may change based on local requirements.

Compliance with regulations is mandatory. Many regulations come with costly penalties for violations, and infractions can result in project delays. Whether through carelessness or otherwise, violating regulations can also negatively affect a company’s reputation in the industry and make it difficult to secure future contracts. 

As noted, in a heavily regulated industry like construction, keeping up with all the laws and regulations can be a big challenge. Small variations from one municipality to another can lead to major violations. It’s not enough to track these regulations with pen-and-paper; regulatory compliance must be a part of the construction management process.

The role of construction management software in regulatory compliance

With the growing complexity of regulatory frameworks that impact various aspects of the construction process, firms are faced with the daunting task of managing compliance across all these areas. Tracking regulations through paper-and-pen systems or a few knowledgeable experts is no longer viable. Construction management software allows your firm to integrate compliance processes into everyday project management workflows.

This allows you to track and enforce compliance as part of your overall workflow, ensuring you don’t miss critical checks or run afoul of local regulations. Carefully setting up your project in a tool like Bridgit Bench is a rock-solid way to bake compliance into your process from the moment your project gets off the ground. It also means you can widely disseminate information to the right people on your team at critical milestones throughout your project. 

Construction management software lets you set up a centralized compliance management system that can be used as the focal point for various teams. Construction projects involve multiple stakeholders such as subcontractors, engineers, and inspectors, each with their own set of compliance requirements. By having a unified view of the project, its compliance obligations, and identifying those responsible for each part, you can carefully manage compliance while reducing risk.

As an example, you can use a tool like Bridgit Bench to track certifications of your employees and contractors. The tool will monitor the status of certifications and send out automated reminders when renewals are due. No more checking cards on the job site to discover unwelcome surprises; instead, you have a streamlined, automated system that reduces the risk of non-compliance on the job site.

Types of Regulations Tracked Through Construction Management Software

As we’ve seen, construction firms must comply with a diverse set of regulations. These regulations are different across regions and project types, making tracking compliance a complex and ongoing process. Let’s take a closer look at how construction management software can be used to track different types of regulatory requirements such as: 

• Health and Safety Regulations
• Environmental Compliance
• Labor Laws and Workforce Compliance
• Data Privacy and Cybersecurity Regulations
• Building Codes and Permitting

Health and Safety Regulations

Construction firms are familiar with the importance of complying with health and safety regulations. Agencies such as OSHA (Occupational Safety and Health Administration) in the United States impose strict guidelines for safe practices on job sites and back this up with regular inspections. 

How Construction Management Software Can Help

Construction management software can help streamline compliance here by automating the tracking of safety checklists, safety inspections, and incident reports. For example:

• You can set up automated safety inspections to schedule and manage recurring safety inspections to ensure all protocols are followed.
• Real-time incident reporting of safety incidents and near-misses provide immediate data to set up corrective measures.
• Tracking the training and certification status of all workers on a job site ensures only qualified personnel are performing specific tasks.

Environmental Compliance

The growing attention placed on environmental compliance has added another key component to the regulatory frameworks construction firms must follow. Regulations dictating the management of emissions, waste disposal, and energy consumption are often set at the local level. Non-compliance can result in penalties, project delays, or even shutdowns.

How Construction Management Software Can Help

The complexity of tracking an evolving mix of environmental regulations is a modern challenge facing construction firms. Construction management software can help by:

• Setting up processes for tracking emissions and waste by monitoring and reporting on everything happening on-site.
• Providing a central documentation management repository to provide detailed records of environment impact assessments, compliance reports, and regulatory documentation.
• Integrate sustainability metrics into their software to track progress towards reducing their environmental footprint and ensuring adherence to green building standards.

Labor Laws and Workforce Compliance

Complying with local labor laws is a critical component of modern construction regulations. Local laws will govern working conditions, employee rights, and wage regulations, and can vary based on region adding another layer of complexity.

How Construction Management Software Can Help

Adhering to local labor and workforce regulations is an essential component of regulatory compliance for construction firms. Construction management software plays a key role by:

• Providing a system to track workforce hours and wages to ensure that work hours, overtime, and wages are compliant with local and federal labor laws.
• Helping by managing union agreements and labor standards in compliance with union agreements.
• Ensuring that workers have the correct and necessary safety certifications for certain equipment or materials handling (such as handling hazardous materials).

Data Privacy and Cybersecurity Regulations

Construction firms are required by law to safely handle sensitive information such as employee records, client details, and financial data. This ensures compliance with data privacy laws such as GDPR and CCPA. Data privacy laws often come with tough penalties for offending parties, signaling the growing importance of data protection in the modern workplace.

How Construction Management Software Can Help

Construction management software can provide a key pillar in your data governance strategy, helping your IT and security team protect all your company data. This can help through:

• Providing data access controls on sensitive information to ensure only authorized personnel can view or modify data.
• Automating consent management and data retention to ensure individual rights are protected, for instance, making it simple to perform a data deletion request.
• Implementing cybersecurity measures to safeguard data from bad actors and incorporating your workforce data in your data governance policies where IT and security teams can protect information.

Building Codes and Permitting

Construction projects need to comply with local and federal building codes. These codes everything from structural integrity and electrical systems to plumbing and fire safety. Managing permits and adhering to these building codes is critical for the legal execution of any construction project.

How Construction Management Software Can Help

The nuances of building codes and permits require a solution that intelligently scales with your construction firm’s processes. Construction management software simplifies this process by:

• Tracking permit requirements to ensure that all necessary permits are obtained and renewed on time, reducing the risk of project delays due to missing or expired permits.
• Providing automated checks to ensure code compliance checks are completed at the correct stages of the construction project.
• Creating a centralized repository for managing documentation related to permits including inspections, compliance certifications, and inspection schedules.

Centralizing Compliance Management Through Software

The construction industry involves multiple layers of regulations from health and safety to data privacy and building permits. Managing all these regulatory requirements can be overwhelming; unfortunately, it can also add risk to your project through potential for costly delays or even being shut down. As we’ve seen, construction management software offers a way to centralize compliance management to reduce this risk. 

The benefits of a centralized approach can dramatically decrease the risk of non-compliance violations and speed up your processes. Let’s take a look at why this approach is so valuable by examining three aspects of construction management software.

• Centralizing Data Storage for Regulatory Audits
• Automating Compliance Reminders and Alerts for Deadlines
• Audit Trails and Documentation for Regulatory Inspections

Centralizing Data Storage for Regulatory Audits

A key benefit of construction management software is its ability to create and manage a centralized repository for documents pertaining to compliance. Managing regulations across multiple, concurrent projects operating in multiple jurisdictions is a challenging task for any firm. This fragmented approach is a recipe for non-compliance – even if it’s an innocent mistake it can still be a costly slip up.

A centralized system provides a mechanism for you to organize all necessary compliance documentation in one place. For example, tracking certifications of your workforce to make sure everyone is able to complete the work on the job site makes passing inspections a lot simpler. This digital storage makes it easier to retrieve data when you do have an inspection report, as opposed to digging through a paper filing system. Up-to-date, readily accessible data is worth its weight in gold when you have an inspector tapping his finger on your desk waiting for a report.

Automating Compliance Reminders and Alerts for Deadlines

Construction projects are subject to a variety of compliance deadlines. Items like renewing certifications or submitting environmental impact assessments are critical to complete on time. Missing a deadline can result in fines, project delays, or even work stoppages. This is a risk no construction project manager wants to take.

Construction management software helps you to set up automated alerts for upcoming deadlines from certificate renewals, permit expirations, or safety inspections. These alerts can be tailored to reach the right people on your team. This reduces the risk of oversight and helps to keep projects on schedule by building compliance checks directly into your project management workflow.

Audit Trails and Documentation for Regulatory Inspections

The routine of regulatory inspections is a key component of construction project management. As you know, auditors require detailed records of all compliance-related activity, from safety protocols and training records to environment impact assessments and waste disposal methods. A smooth inspection is often one where you can provide clear, well-documented records without delay.

An audit trail provides a chronological record of every compliance-related action taken during a project. It should document who completed the task, when it was completed, and what was involved in completing the tasks. Construction management software provides a clear audit trail of activities in one central location. All of your compliance documentation is in one place making it easy to pass inspections with all the necessary information.

Choosing the Right Software for Regulatory Compliance

Selecting the right construction management software for your team can be a difference maker when it comes to managing compliance. What features should you look for? Use the table below to review the various features and why they matter.

Key Feature	Description	Why It Matters
Document Management	Centralized, secure storage for all compliance-related documents, including permits, certifications, and safety records, with easy retrieval.	Ensures quick access to up-to-date documentation during audits or inspections, while protecting sensitive data through encryption.
Compliance Tracking & Reporting	Automates tracking of regulatory requirements, including deadlines, and provides real-time updates on compliance status across projects.	Prevents missed deadlines or lapses in compliance, ensuring that your team remains informed and proactive in managing obligations.
Safety Management	Offers tools for incident reporting, safety checklists, and real-time monitoring to ensure adherence to safety regulations like OSHA.	Minimizes safety risks and ensures consistent application of safety protocols across all projects, safeguarding both workers and firms.
Workforce Management	Tracks employee certifications and qualifications, with automated alerts for expiring certifications and qualifications.	Ensures that only qualified personnel are deployed for specific tasks, helping to maintain legal compliance and reduce project risks.
Data Security & Privacy	Provides encryption, SOC 2 Type 2 certification, and robust access controls to ensure data privacy and protect sensitive project and employee information.	Safeguards against data breaches and ensures compliance with data protection regulations, reducing risks related to GDPR and CCPA.
Integration Capabilities	Seamlessly integrates with existing systems such as accounting and HR tools, providing a comprehensive view of project compliance.	Simplifies compliance management by consolidating data from multiple sources, ensuring no regulatory requirement is overlooked.
Customization & Flexibility	Allows for customizable workflows, dashboards, and compliance reports tailored to specific project needs and local regulations.	Supports the unique requirements of each project, offering the flexibility to meet varying regulatory standards across regions.
Mobile Accessibility	Offers mobile apps for field teams, with offline functionality and real-time updates when reconnected, ensuring compliance data is accessible anywhere.	Empowers teams on the ground to update and monitor compliance from remote sites, ensuring up-to-date information regardless of location.
Audit Trail & Accountability	Maintains detailed audit logs and user permissions, including electronic signatures for document approvals and regulatory compliance verification.	Enhances transparency and accountability, providing clear documentation for all compliance activities, essential during audits.
Continuous Updates & Support	Regular software updates to reflect regulatory changes, with dedicated support and training to ensure users stay compliant with new requirements.	Keeps firms ahead of evolving regulations, ensuring compliance is maintained without manual intervention or gaps in processes.

Future-Proofing Compliance with Construction Management Software

The evolving landscape of regulatory compliance is placing increased pressure on construction firms to manage compliance records. Traditional methods of tracking compliance are no longer sufficient to meet regulatory requirements from health and safety to data privacy and cybersecurity. Inspections and audits are a core part of ensuring projects run smoothly, minimize risk, and avoid costly delays.

Construction management software is a modern way to handle the complex world of regulatory compliance. Managing regulations at the project level to adhere to local and federal mandates is no small feat. By using software, you can automate checks, centralize documentation, and be prepared for any inspection.

Want to learn more? Bridgit is a SOC 2 compliant workforce planning software that helps top construction companies manage their workforce, construction projects, and stay on top of regulatory compliance.