Sharepoint document sets / Libraries ideas needed

I am trying to set up a Sharepoint site/list for my team to collect job packages for inspection documents for various projects.
Each tool has its own inspection document.

I was thinking to set up two document sets, one for the templates of the inspection documents and one for the projects.

Within the projects, I would create a folder, or another document set for each project and based on the selected tools, copy over the relevant documents from the templates as needed.

Has anyone done anything similar share some tips or could share some videos on how to do this?