Checklist: Data-Security Must-Haves Before Your First Enterprise AEC Pilot

by Taher Pardawala June 17, 2025

Launching an enterprise AEC pilot without solid data security? It’s risky. Cyberattacks cost the industry $1.85 trillion in 2020, and breaches now average $4.88 million per incident. Here’s what you need to know upfront:

Encryption: Use AES-256 for data at rest and TLS 1.2+ for data in transit. Don’t skip end-to-end encryption (E2EE) for secure communication.
Compliance: SOC 2 and ISO 27001 certifications are essential to prove your security standards to enterprise clients.
Access Control: Implement Role-Based Access Control (RBAC), Multi-Factor Authentication (MFA), and detailed audit trails.
Data Residency: Ensure compliance with local laws like CCPA and SHIELD Act for where your data is stored.
Continuous Monitoring: Combine automated tools and manual oversight to stay ahead of threats.

Why it matters: 59% of AEC firms have faced cyberattacks in the last two years. Protect your projects, clients, and reputation by prioritizing security from day one.

AI in AEC: Data Privacy in the AI Era

Encryption Requirements: Protecting Data at All Times

Encryption plays a central role in defending against data breaches, especially in Architecture, Engineering, and Construction (AEC) projects. Interestingly, over 70% of encryption vulnerabilities arise not from flaws in cryptographic algorithms themselves but from mistakes made during their implementation ^[3]. That’s why setting up encryption correctly from the beginning is so important.

Studies on data breaches reveal that when encryption is properly implemented, stolen data becomes practically useless to attackers ^[3]. This is particularly vital for AEC projects, which often handle highly sensitive information – ranging from proprietary building designs to confidential client details.

In the U.S., encryption standards are guided by clear regulations. For instance, while PCI DSS primarily addresses payment card data, its encryption standards provide an excellent framework for broader enterprise security. AES-256 encryption has emerged as the go-to standard for safeguarding data ^[2], offering the level of security that today’s enterprises expect.

Encryption at Rest and In Transit

When it comes to AEC data, encryption must address two key scenarios: data at rest and data in transit.

Data at rest refers to information stored on devices like hard drives, databases, or cloud platforms. This could include CAD drawings, BIM models, project specifications, or client communications. To protect this data, AES-256 encryption should be applied across all storage systems, from local servers to cloud storage solutions ^[2].
Data in transit involves information being transmitted over networks, such as emails, file transfers, or collaborative platform communications. Protecting this data requires using TLS 1.2 or higher for secure transmission ^[2]. This is especially critical when team members access files remotely or share large design files with clients and contractors. Collaborative tools, like BIM platforms, are often targeted by cyberattacks ^[1].

"Encrypting your files before they reach the cloud is the single most important precaution to take." – Asaf Cidon, co-founder and CEO of Sookasa ^[1]

To maximize security, store encryption keys separately, implement Role-Based Access Control (RBAC), and adopt automated key management systems with regular key rotation. Even the strongest encryption is ineffective without proper key management ^[2].

Securing both stored and transmitted data is essential, but protecting communication channels end-to-end adds an extra layer of security to your workflow.

End-to-End Encryption Setup

Once data at rest and in transit is secured, the next step is to ensure that all communication links are protected with end-to-end encryption (E2EE). E2EE ensures that information remains encrypted throughout the communication process, with only the intended recipient able to decrypt it. This means exclusive access to the data is guaranteed ^[4].

Setting up E2EE involves several steps. First, choose an encryption protocol that fits your needs, such as SSL/TLS, ECC, or IPSec ^[4]. Each protocol has its own strengths: symmetric encryption like AES is faster for large data volumes, while asymmetric encryption like RSA is ideal for secure key exchanges. A hybrid approach, combining both, often works best for enterprise environments ^[3].

Next, generate unique public and private keys for each device in the communication chain ^[4]. This includes everything from workstations used for design work to servers storing project data and mobile devices accessing files in the field. Key exchanges must always occur over secure channels – private keys should never be transmitted over unsecured networks.

Your communication infrastructure should fully support E2EE. Use secure channels like HTTPS or VPNs for all exchanges ^[4]. This becomes especially important when collaborating with external partners, subcontractors, or clients.

To strengthen your encryption setup, combine E2EE with multi-factor authentication, strong passwords, and consistent software updates ^[4]. These additional measures create a robust security framework that protects against various attack methods.

Challenges in implementing E2EE often revolve around key management and ensuring user accessibility. To address these issues, deploy identity verification systems and educate users on proper security practices ^[4]. Many breaches occur not because of weak encryption but because users bypass security protocols for convenience.

Finally, conduct regular compliance reviews to ensure your encryption practices meet current regulatory standards. A compliance-focused approach helps you stay aligned with industry guidelines, which is crucial as cybersecurity regulations continue to evolve ^[5].

Meeting SOC 2 and ISO Standards

SOC 2

For Architecture, Engineering, and Construction (AEC) firms, obtaining SOC 2 and ISO certifications is essential to protect sensitive project data. With data breaches costing companies millions, enterprise clients increasingly demand proof of rigorous security measures. A staggering 59% of AEC firms have faced cybersecurity threats ^[15].

"If you are handling sensitive customer data or looking at Enterprise-Scale customers, especially in the US, SOC 2 becomes a table-stakes requirement for a sales engagement." – Devika Anil, Lead Auditor at Sprinto ^[7]

SOC 2 stands out by offering flexible guidelines that adapt to various business models while maintaining a strong focus on security. Its framework includes five Trust Services Criteria and 64 specific requirements ^[6], with security being the only mandatory element ^[7].

ISO 27001, on the other hand, provides a globally accepted framework for creating and improving an information security management system (ISMS) ^[8]. While SOC 2 is particularly relevant in North America, ISO 27001 carries international recognition. For cloud-based AEC operations, ISO 27017 builds on ISO 27001 by addressing cloud-specific security needs and clarifying shared responsibilities between providers and customers ^[9].

"Having spent my career managing technology for a large GC, I have a unique perspective on the importance of security and data integrity as it relates to the AEC industry… Our recent SOC 2 and ISO 27001/17/18 certifications demonstrate this commitment and ensure Joist AI is the go-to platform for the AEC industry’s revenue leaders." – Rohan Jawali, CEO and Founder of Joist AI ^[13]

A SOC 2 Type 2 audit focused on security typically involves around 80 controls ^[6]. For cloud-only organizations, the number may drop to 60, while more complex setups could require up to 100 controls ^[6]. Aligning these certifications with specific controls is key to protecting your operations.

Required Controls to Set Up

To address vulnerabilities, start by establishing strong access controls. Automated monitoring is essential for quickly detecting changes, and robust change management processes help mitigate risks across different security domains.

Risk mitigation involves anticipating potential disruptions – like data breaches, system failures, or natural disasters – and planning effective responses. Tailor your controls to match your risk profile:

Control Category	Traditional Approach	Cloud-Aware Approach
Asset Management	Server-centric tracking	Virtual, transient, cross-vendor monitoring
Policy Controls	General security policies	Role-mapped, dynamic, cloud-aware policies
Accountability	Internal responsibility	Explicit provider/customer responsibility
Audit Trail	Static, periodic reviews	Continuous, automation-driven monitoring

By focusing on controls that address your most pressing risks, you can maximize security impact while maintaining operational efficiency. This targeted strategy is crucial for a smooth compliance audit.

Getting Ready for Compliance Audits

Preparing for an audit requires comprehensive policies, strong technical measures, well-organized documentation, and expert guidance ^[10].

"Preparing for a SOC 2 audit involves ensuring your administrative policies are current, your security measures are robust, all necessary documentation is organized, and you’re working with a knowledgeable auditing firm. Following these steps not only readies you for the audit but also strengthens your business’s overall security and trustworthiness." ^[10]

Documentation plays a pivotal role in compliance ^[12]. This includes detailed records of security policies, incident response plans, employee training, and system configurations. For AEC firms, it’s critical to document how proprietary designs are protected, how client data is managed, and how collaborative platforms are secured for project teams.

Conduct internal audit-readiness assessments to spot and fix weaknesses before the formal audit. These reviews often uncover gaps like missing documentation, unclear responsibilities, or inconsistent policy enforcement.

Promote a security-first mindset across your organization by offering regular training on best practices ^[16]. This is especially important in AEC, where project teams often include external contractors and consultants.

Keep open communication with your auditor to clarify the scope, timeline, and evidence requirements. Experienced auditors can provide valuable advice on documentation standards and help prioritize corrective actions.

Avoid common pitfalls like underestimating the effort required or treating the process as a mere checkbox exercise. Instead, view compliance as an opportunity to strengthen your security foundation ^[11].

Using compliance automation tools can simplify the process. For instance, Rippling’s IT management software helps with SOC 2 compliance by automatically disabling access for terminated employees, managing remote devices, and maintaining detailed audit logs ^[11].

Thorough preparation not only ensures a successful audit but also improves operational efficiency, builds customer trust, and gives your firm a competitive edge in enterprise sales ^[14].

Access Control Setup: Limiting Data Access

After implementing encryption and compliance measures, the next step in securing AEC project data is setting up robust access controls. These controls prevent unauthorized access while ensuring legitimate workflows remain uninterrupted. Combining Role-Based Access Control (RBAC), Multi-Factor Authentication (MFA), and detailed audit trails creates a strong foundation for data security.

Role-Based Access Control (RBAC)

RBAC assigns system access based on predefined roles rather than individual users, streamlining management and improving security. By aligning access permissions with specific job responsibilities, RBAC reduces administrative complexity and strengthens oversight.

Start by analyzing current user permissions. Collaborate with department leaders to map roles to actual job functions, ensuring access rights reflect real workflows.

"RBAC provides a mechanism for system administrators to set policies and apply them as appropriate." – Delinea Team ^[17]

For example:

Architects: Full access to design files.
Project Managers: Read-only access to drawings and full control over scheduling tools.
Contractors: Limited access to specific project phases or areas.

Stick to the principle of least privilege – users should only have access to what they need to perform their duties. Test roles in a staging environment to ensure they work as intended, and refine them based on feedback. Automating role assignments through HR or identity management systems can help reduce errors and maintain consistency. Regularly review and update roles to keep permissions aligned with changing responsibilities.

Once roles are clearly defined, the next priority is securing how users authenticate.

Multi-Factor Authentication (MFA)

MFA adds an extra layer of security by requiring users to verify their identity using two or more methods. This is particularly important for protecting systems if passwords are compromised.

"Adding an extra layer of defense makes it harder for attackers to exploit stolen credentials. That’s where the benefits of multi-factor authentication (MFA) come in. Whether you’re protecting business accounts or personal logins, MFA disrupts unauthorized access before it succeeds." – Legit Security ^[18]

Choose MFA tools that integrate well with your existing systems. Authenticator apps like Microsoft Authenticator are generally more secure than SMS verification, which can be vulnerable to carrier-based attacks. For users handling highly sensitive data, hardware security keys offer an excellent option. Enable multiple MFA methods to provide flexibility, and disable less secure options like SMS verification when possible.

Monitor MFA usage and alerts, and educate your team on its importance, especially since many AEC professionals work remotely or on-site. Regularly update and test MFA systems to stay ahead of emerging threats.

Authentication Method	Managed Via	Scope Options
Microsoft Authenticator	MFA settings or Authentication methods policy	Can be scoped to users and groups
FIDO2 security key	Authentication methods policy	Can be scoped to users and groups
Hardware OATH tokens	MFA settings	General application
SMS verification	MFA settings	SMS sign-in can be scoped to users and groups

Audit Trails and Monitoring

To round out your access control strategy, implement continuous system monitoring through audit trails. These logs create a chronological record of actions, helping with security, compliance, and troubleshooting. They capture details like who performed an action, what was done, when it occurred, and the results.

Enable audit logging across all platforms – design software, project management tools, file sharing systems, and communication platforms. Use automated log analysis to quickly identify unusual activity. Solutions like IBM QRadar, Splunk Enterprise Security, or File Integrity Monitoring tools can help track changes to critical design files. Database Auditing tools are also useful for monitoring project database modifications.

Train your team to interpret logs and respond to potential incidents quickly. Store logs securely, back them up regularly, and periodically evaluate your audit processes to identify vulnerabilities. Document any changes to user roles, access permissions, or security settings to support compliance audits and streamline security investigations.

Data Residency and IFC Security Requirements

Once access controls are in place, the next step is understanding where your AEC project data is legally allowed to reside and how to protect specialized file formats like IFC. This becomes especially crucial when dealing with sensitive information in pilot projects.

Let’s dive into how data residency laws and IFC security measures can affect your workflows and compliance.

U.S. Data Residency Requirements

In the U.S., data residency is governed by a mix of federal and state regulations, creating a complex compliance landscape for AEC firms^[19]. These laws reflect growing concerns over security, privacy, and control, which continue to shape how data is stored and managed^[19].

Key federal regulations, such as HIPAA, GLBA, and FISMA, may apply to certain AEC projects^[19]. On the state level, laws like the California Consumer Privacy Act (CCPA), New York’s SHIELD Act, and the Massachusetts Data Security Law impose additional requirements on how data is stored and processed^[19]. Non-compliance with laws like CCPA or the SHIELD Act can lead to fines ranging from $500 to $7,500 per violation^[19].

To navigate these challenges, it’s essential to:

Regularly audit where your data is stored and ensure it aligns with residency rules.
Document policies for data storage and cross-border transfers.
Choose cloud providers that offer region-specific storage options.
Stay informed about evolving data protection laws.
Implement compliance frameworks tailored to your sector’s needs.

Securing IFC Data Formats

Beyond residency concerns, securing Industry Foundation Classes (IFC) files is critical for protecting project data while ensuring smooth collaboration.

IFC files are a standardized format used to describe architecture, engineering, and construction data. They’re essential for enabling collaboration across platforms and are often central to national BIM strategies^[20]^[22]. However, their open nature can introduce unique security risks.

To address these risks:

Use a BIM manual: Clearly define roles, data protocols, and project requirements to establish security boundaries^[23].
Control file complexity: Simplify models before exporting IFC files to limit unnecessary data sharing and avoid exposing sensitive details^[23].
Validate exports: Conduct post-export checks to detect any data leakage or corruption quickly^[23].
Coordinate securely: Use reference points to integrate models across platforms while maintaining strict security measures.

For robust protection, adopt security practices like encrypting IFC files both at rest and in transit, maintaining access logs for all file interactions, and performing regular security assessments of your IFC workflows. These steps align with Global Governance, Risk & Compliance (GRC) standards and help ensure secure project collaboration across diverse software platforms^[21]^[24].

Governance and Continuous Monitoring

Once you’ve established data residency and IFC security measures, the next step is creating a strong governance and monitoring framework. This serves as an essential line of defense, ensuring your AEC pilot adheres to security standards throughout its lifecycle and adjusts to new threats as they emerge.

Security governance lays the foundation for achieving security goals, defining decision-making authority, and evaluating the effectiveness of your security strategy^[27]. For AEC firms, the rising number of incidents highlights just how important it is to have a robust governance system in place.

Regular Security Audits

Conducting regular security audits helps pinpoint vulnerabilities and ensures compliance with relevant standards^[26]. A structured audit schedule is crucial, tailored to risk levels and compliance requirements. For instance:

Monthly audits could focus on vulnerability scans and access control reviews.
Quarterly audits might delve into data encryption protocols, vendor security compliance, and risk evaluations.
Annual audits could include contract reviews, updates to risk management frameworks, and a full inventory of critical systems.

Thorough documentation is key during these audits. Record everything – security policies, access controls, data encryption methods, and incident response plans. Not only does this confirm compliance, but it also simplifies the process of fixing any issues that arise^[31]. For example, SOC 2 audits, conducted by certified public accountants, assess how well your organization’s control systems are designed and functioning, ensuring your security measures are up to par^[32].

The insights gained from these audits should directly feed into a flexible and responsive incident management plan.

Incident Response Planning

Having a clear, actionable incident response plan is essential for minimizing the impact of security breaches. Building on your existing controls and encryption measures, this plan should outline specific roles and communication protocols. It must address scenarios like unauthorized access, ransomware attacks, data theft, or compromised IFC files^[25]. Since human error is a common cause of incidents, regular employee training is a must. Focus on areas like spotting phishing attempts, using strong passwords, adhering to security policies, and reporting suspicious activity promptly^[26].

The plan should also include communication strategies for notifying stakeholders, regulatory authorities, and affected parties within legally required timeframes, ensuring compliance with data protection laws.

Automated vs. Manual Monitoring

Effective security monitoring strikes a balance between automated tools and human oversight. Each approach has its strengths and limitations, and the best results often come from combining the two. Automation is critical for handling large volumes of alerts and reducing human error, while manual oversight adds context and insight for complex investigations. For example, studies show that 70% of alerts can go unnoticed due to resource constraints^[29], making automation indispensable. Organizations that fully embrace automation can also reduce breach-related costs by as much as 65.2%^[30].

Monitoring Type	Advantages	Limitations
Automated	Detects threats in real-time, manages multiple incidents simultaneously, operates 24/7, minimizes human error, frees up resources for strategic tasks	Can produce false positives, lacks contextual understanding, requires setup and fine-tuning, may miss advanced attacks
Manual	Offers deeper contextual analysis, handles complex cases, adjusts to unique scenarios, provides strategic insights	Limited by working hours, prone to human error, struggles to scale, may overlook fast-moving threats
Hybrid Approach	Combines automation’s speed with human expertise, reduces alert fatigue, optimizes resource use	Demands coordination between systems, requires ongoing management, involves higher initial complexity

To implement automated monitoring effectively, start small – focus on low-risk, straightforward tasks and gradually expand to more complex processes^[28]. Prioritize automating high-impact activities like vulnerability scanning, access log reviews, and basic threat detection. This helps reduce the workload on human teams, which is especially important given that 69% of security professionals report burnout symptoms^[30].

Regularly test and refine your monitoring workflows to ensure automated tools are catching relevant threats while manual processes remain ready to address more sophisticated attacks. This balance is critical for maintaining a secure and resilient AEC environment.

Conclusion

This checklist highlights the key steps needed to secure your AEC project effectively. Launching your first enterprise AEC pilot without strong data security measures can expose you to risks that far outweigh any potential benefits.

Start with encryption – it’s your primary defense. By encrypting sensitive project files, client data, and proprietary designs, you ensure that even if intercepted, this information remains inaccessible. This is especially critical when data breaches can cost companies millions, with the industry already facing massive financial losses.

Adhering to SOC2 and ISO standards demonstrates your commitment to data security and builds trust with enterprise clients. In a time when 82.45% of U.S. residents express concern about how personal data is used in AI systems ^[1], aligning with these frameworks can set you apart from competitors.

Access control is another essential layer of protection. By enforcing a need-to-know policy, you reduce unnecessary exposure to sensitive information – a critical step given that 59% of AEC firms have faced cybersecurity threats within the past two years ^[1].

Data residency requirements are equally important. Meeting local regulations not only ensures compliance but also strengthens client trust. As StratoKey explains:

"Data residency is an essential piece of the puzzle for organizations that seek to comply with local data protection, privacy, and security laws" ^[33].

This becomes even more pressing as global data generation is expected to hit 463 exabytes per day by 2025 ^[33].

Finally, continuous monitoring and governance bring everything together. These practices create a dynamic security framework that evolves to counter new threats. With over 75% of construction, engineering, and infrastructure companies reporting cyber incidents in the past year ^[34], staying vigilant is no longer optional – it’s essential.

The stakes are high. Cyberattacks on infrastructure are increasing at an alarming rate of 125% annually ^[35], and this trend shows no signs of slowing.

Your AEC pilot is more than just a project – it’s an opportunity to establish a scalable, enterprise-level security framework. By adopting these practices now, you’ll not only safeguard your current project but also build a solid foundation for long-term security, ensuring your organization can thrive in an increasingly complex and challenging digital landscape.

FAQs

What’s the difference between SOC 2 and ISO 27001 certifications, and why do they matter for AEC firms?

SOC 2 is an attestation report issued by a CPA firm. It evaluates how effectively an organization safeguards customer data based on Trust Service Criteria like security, availability, and confidentiality. On the other hand, ISO 27001 is a globally recognized certification that requires organizations to implement and maintain an Information Security Management System (ISMS), with a strong emphasis on risk assessment and continuous improvement.

For AEC firms, having both certifications is crucial. They showcase a serious dedication to protecting data, strengthen client confidence, and ensure alignment with industry standards. Beyond reducing potential risks, these certifications also position firms to meet the demands of enterprise-level clients, supporting long-term growth.

What steps should AEC firms take to implement end-to-end encryption (E2EE) for securing sensitive project data?

AEC firms can protect sensitive project data by implementing end-to-end encryption (E2EE) with robust protocols like AES-256 for stored data and TLS 1.3 for data in transit. These encryption methods ensure information stays secure, whether it’s being stored or transferred.

A crucial element of this process is key management, which involves securely generating, storing, and periodically rotating encryption keys to prevent unauthorized access. Firms should also enforce strict access controls and always use secure communication channels. By adhering to these measures, AEC firms can maintain the security of project data at every stage of its lifecycle.

What challenges do AEC firms face with data residency laws, and how can they ensure compliance effectively?

Data residency laws present a tough hurdle for AEC firms. The reasons? Maintaining local data centers is expensive, legal requirements are often complex, and regulations seem to change constantly. All of this can make staying compliant feel like an uphill battle.

To navigate these challenges, firms should focus on strong security practices. This includes using encryption – both for data at rest and in transit – and implementing detailed access controls to limit who can see what. Regular audits and staying on top of regulatory updates are equally important. Bringing in legal or compliance experts can also be a smart move, offering guidance to help your firm meet local requirements and steer clear of penalties.

Checklist: Data-Security Must-Haves Before Your First Enterprise AEC Pilot

AI in AEC: Data Privacy in the AI Era