Documentation on a software project consists of information both inside the sourcecode listings and outside them—usually in the form of separate documents or unit development folders. On large, formal projects, most of the documentation is outside the source code (Jones 1998). External construction documentation tends to be at a high level compared to the code, at a low level compared to the documentation from the problem definition, requirements, and architecture activities.

Unit development folders. A unit-development folder (UDF), or software-development folder (SDF), is an informal document that contains notes used by a developer during construction. A "unit" is loosely defined, usually to mean a class, although it could also mean a package or a component. The main purpose of a UDF is to provide a trail of design decisions that aren't documented elsewhere. Many projects have standards that specify the minimum content of a UDF, such as copies of the relevant requirements, the parts of the top-level design the unit implements, a copy of the development standards, a current code listing, and design notes from the unit's developer. Sometimes the customer requires a software developer to deliver the project's UDFs; often they are for internal use only.

Detailed-design document. The detailed-design document is the low-level design document. It describes the class-level or routine-level design decisions, the alternatives that were considered, and the reasons for selecting the approaches that were selected. Sometimes this information is contained in a formal document. In such cases, detailed design is usually considered to be separate from construction. Sometimes it consists mainly of developers' notes collected into a UDF. And sometimes— often—it exists only in the code itself.