History of the Signature: Death of the Quill & Birth of eSignatures

Signatures have played a pivotal role in human history, evolving from ancient times when Sumerians pressed symbols into wet clay to authenticate documents, to today’s advanced digitised signatures that streamline processes across various industries, including construction. This exploration traces the history of the signature’s journey, emphasizing its impact on legal documents and modern business practices, particularly through the adoption of eSignature technology in the construction sector.

History of the Signature: The Origins and Historical Evolution

The concept of signatures was born around 3500 BC with the Sumerians, who utilized small cylinders to press a series of pictures and symbols into wet clay, creating the first known clay tablets. This method demonstrated the earliest form of personal authorization and has historical significance as a foundational element in the history of the signature for verifying identity.

Advancing to 1069, the first document signed in the Latin alphabet by “El Cid,” a medieval Spanish nobleman, used his personal signature to validate his donation to the Cathedral of Valencia. This act highlights the growing importance of handwritten signatures in official documents throughout the history of the signature.

By the 17th century, the legal dimensions of signatures were formally recognized when the English Parliament passed the Statute of Frauds Act in 1677. This legislation mandated that wills, contracts, and grants must bear a signature to ensure validity and enforceability, establishing the signature’s critical role in legal proceedings and electronic commerce.

Technological Advancements and the Rise of Digital Tools

Before we started signing things electronically we would use a pen. This was otherwise known as the wet signature. A wet signature is a handwritten signature applied to a physical document using a pen or other writing instrument. It has been the standard method of authentication for centuries. But, in today’s fast-paced business environment, wet signatures can be time-consuming, inefficient, and prone to errors. However, the 20th century then witnessed significant technological shifts that began altering the traditional role of the signature. The advent of fax technology and emails facilitated a new era of document scanning and electronic contracts, enabling documents to be sent and signed electronically, thus expanding the scope and efficiency of signing practices. 

This transformation was further accelerated by the passage of the ESign Act at the turn of the 21st century by President Clinton, which acknowledged the legality of electronic signatures, propelling them into widespread use across industries. This act was a significant advancement in digital signature technology, fostering a new era in the history of the signature in digital documentation.

Electronic signatures are digital representations of a wet signature or a handwritten signature that can be applied to electronic documents. They are legally binding in many jurisdictions and offer several advantages over wet signatures. The ESign Act accelerated digital signature technology, and the market leader and our eSignature partner, DocuSign, were founded in 2003.

The Slow Adoption in the Construction Industry

Despite the clear benefits and legal acceptance of electronic signatures, their adoption within the construction industry has been relatively slow. The industry’s historically litigious nature and skepticism toward new technologies have contributed to this hesitant uptake. However, with the establishment of regulations like the UK eIDAS regulation, there are no longer excuses to eschew the use of eSignature technology, it’s time to rethink the outdated and inefficient contract execution process based on the history of the signature.

Understanding Different Types of Electronic Signatures

• Simple Electronic Signatures: The most basic form of electronic signature, often involving a typed name or a scanned image of a handwritten signature.
• Advanced Electronic Signatures: Require additional security measures to verify the signer’s identity and the integrity of the signature.
• Qualified Electronic Signatures: The highest level of security, often used for high-value transactions.

Legal Considerations for Electronic Signatures

• ESIGN Act: A U.S. law that gives electronic signatures the same legal weight as wet signatures.
• eIDAS Regulation: A European Union regulation that establishes standards for electronic signatures.
• State and local laws: Some jurisdictions may have specific requirements for electronic signatures.

Best Practices for Implementing Electronic Signatures

• Choose a reputable e-signature provider.
• Educate your employees on the benefits and proper use of electronic signatures.
• Establish clear policies and procedures for electronic signature usage.
• Ensure compliance with relevant laws and regulations.

Real-World Examples of Electronic Signature Adoption

• Construction: Contractors using electronic signatures to expedite contract approvals and reduce paperwork.
• Healthcare: Hospitals and clinics using electronic signatures for patient consent forms and medical records.
• Financial Services: Banks and insurance companies using electronic signatures for loan applications, account agreements, and other documents.
• Government: Government agencies adopting electronic signatures to streamline processes and improve efficiency.

Five Reasons Why the Construction Industry Needs to Start Embracing eSignature Technology

Significant efficiency gains

Subcontract Order documents can vary significantly in size. From our experience, they can be anywhere between 100 to over 1000+ pages depending on the information sent and the complexity of the order and amendments. So let’s say the average document is approximately 500 pages, and you send two copies for signing (one for you and one for the subcontractor) – that’s approximately 1,000 pages per order, which is a considerable amount of tedious printing time that could be better spent elsewhere. Traditional methods that consume extensive amounts of time can be replaced with digital solutions like C-Link, which integrate eSignatures to cut down processing times from days to just minutes. This transformation not only embodies the evolution of signatures but also demonstrates the practical application of advanced technology in reducing the cumbersome administrative burdens historically associated with construction projects. Let’s look at the time we spend manually executing contracts vs digitally executing with C-Link.

Using an example of 20 subcontract packages per project, which takes 200 minutes per contract, you can spend over 8 days per project handling paper Subcontract Order documents. Multiply this by 10 projects a year, and organisations can spend nearly 17 weeks (or 4 months) on traditionally executing contracts versus C-Link’s eSignature integration, where you’ll be spending just minutes.

Significant cost savings

Printing contracts have a hidden but hefty price tag attached to them. Let’s break down the cost using the 500-page and two-copy example (1000 pages).

Manually executing a single contract can cost over a hundred pounds (£127.13); multiply this by 20 subcontract packages and 10 projects a year – you will be spending over £25,000 a year on printing and sending Subcontract orders versus a fraction of the cost using C-Link’s eSignature integration. This shift from wet signatures and physical document handling to electronic signatures and digital document management represents a significant stride towards economic efficiency in handling official documents.

Time and money aren’t the only things you’ll get by ditching the photocopier; you’ll also get:

• No more expletives when the paper runs out
• No more groans when the ink runs low
• No more eye-rolling when your colleague jumps the queue to print their 1-page document
• No more bruised toes after kicking the photocopier when the paper gets jammed…
• So, greater job satisfaction and fewer trips to A&E!

Environment

The average tree provides 10,000 to 20,000 sheets of paper. From our previous example, we print approximately 20,000 pages for subcontract agreements, destroying one to two trees per project. When you multiply this out over dozens of projects undertaken in a year, a small woodland is felled just to support subcontract documents.

CO2 is an essential metric for businesses to track, and as the world strives to reach net zero, we need to evaluate the impact of wet signatures. The average delivery produces 181g of CO2 per delivery, so when executing a contract which is sent three times, you will be emitting 543g of CO2 per contract. Also, the average CO2 for printing equates to 5g per page, and using the same example as before will emit 5kg of CO2 per contract.

Manually executing a single contract can emit over 5.5 kilos of CO2; multiply this by 20 subcontract packages and 10 projects a year – you will be emitting over 2.2 tonnes of CO2 for Subcontract agreements each year.

Turnaround time

When we execute contracts manually via wet signatures, we are at the mercy of external factors such as delivery services, couriers, business days, and holiday schedules. Then, we repeat this process with the subcontractor to return the signed copy. This means it can take weeks or even months to execute a Subcontract order document. When we are looking to act quickly, wet signatures don’t allow us to be agile or reactive to situations – resulting in an increased chance of errors in contract administration and risk exposure due to unexecuted contracts.

By using C-Link’s digital signature integration, the contract execution cycle is significantly reduced, with 80% of documents signed in less than 24 hours, meaning you can get subcontractors to the site much more quickly, fewer delays to commencement due to unsigned contracts, and reduced risk with fully executed contracts. The use of digital signatures reflects a wider adoption of electronic commerce practices within the industry, facilitating faster and more efficient transactions.

Risk

Having an unsigned contract is a significant risk in construction and can create uncomfortable ambiguity between the parties, particularly if the contract is rushed and sent after the subcontractor’s commencement.

By streamlining the contract-to-signature process, C-Link buys back your procurement team’s time to ensure they have dotted all “i’s” and crossed all the “t’s”, meaning fewer risks when producing and executing contracts. The adoption of such digital tools in the construction industry not only helps mitigate risk but also provides a robust framework for handling the legal requirements and official documents more securely and reliably.

Enhanced security and compliance

Electronic signatures are generally more secure than wet signatures, as they are protected by advanced encryption and authentication technologies. This can help to reduce the risk of fraud and forgery. Additionally, electronic signatures can help ensure compliance with various legal and regulatory requirements, such as the Electronic Signatures in Global and National Commerce Act (ESIGN) in the United States.

Improved collaboration and communication

Electronic signatures can also improve collaboration and communication among project stakeholders. By providing a centralised platform for managing documents and signatures, electronic signatures can help to streamline the approval process and reduce the need for back-and-forth communication.

Increased scalability

As construction projects become larger and more complex, the need for efficient and scalable contract management processes becomes even more critical. Electronic signatures can help businesses to scale their operations and handle increased volumes of contracts without sacrificing efficiency or security.

Improved customer satisfaction

By providing a faster and more convenient way to sign documents, electronic signatures can improve customer satisfaction. This can be particularly important for subcontractors and suppliers who may need to sign contracts quickly to get started on projects.

The Solution

It’s clear that the traditional method of executing contracts via wet signatures comes with a hefty price tag, whether that’s time, cost, environment or risk – the old way of contract execution is not a good fit for the fast-paced environment of construction and absorbs valuable time, money and energy that could be better spent elsewhere.

To keep up with the fast-paced demands of the construction industry, we need to adopt an end-to-end digital solution. C-Link is the new way of creating and executing Subcontract orders, and our automated system reduces the traditional 12 touchpoints of wet signatures down to just four.

History of the Signature: The Old Way vs The New Way

From pressing symbols into wet clay to clicking to sign in an electronic document, the evolution of the signature encapsulates a significant shift towards efficiency and security in document processing. Using the C-Link and DocuSign integration, you’ll save thousands on printing and posting contracts and months of valuable time for your organisation. You’ll also significantly reduce your risk exposure as a business as executing contracts is streamlined, and with the fully integrated system, you will have a complete audit trail from tender to order execution, centralised all in one place. So, no more hunting through folders to find the source of truth; you can access it in a matter of clicks on C-Link.

About Chris Barber

Chris began his Quantity Surveying career in 2006, working for one of the market leaders in the Design for Manufacture and Assembly (DfMA) sector. After cutting his teeth as a specialist subcontractor for over seven years, Chris transitioned to Main Contracting, working on high-end residential schemes across central London, constructing and fitting out buildings for high-net-worth individuals and estates. Having worked on both sides of the industry, Chris understands the pain points and inefficiencies these two essential stakeholders experience and believes technology will revolutionise how the industry does business and dramatically shift its outdated culture.