The Role of Blockchain in Improving the Processes and Workflows in Construction Projects

Abstract

Construction is prone to disputes similar to other business dealings. Construction delays are the most common causes of disputes in construction projects. Most of the time, construction projects are delayed not only because of a lack of funding, but also because of disputes between the contractor and the client. Blockchain Technologies (BCT) have the potential to make the construction industry more efficient, inexpensive, or completely automated. In this paper, an extensive literature review is conducted to locate authoritative sources about the most common applications of blockchain technology in the construction industry. The study aims to identify the potential, benefits, challenges, and uses of blockchain in the construction industry. Furthermore, this paper explores the roles of BCTs in improving and enhancing the workflow efficiency of construction projects. In addition, this paper identifies the major causes of disputes and delays in the construction industry. These causes were used as the baseline for identifying the most relevant solutions provided by blockchain technologies to develop a matching model to find applicable solutions from the literature cases to resolve the identified causes of disputes and delays. The research findings indicated that the common cases of BCT including administrative purposes, smart contracts for transactions, permanent transaction records, and permanent ownership records contribute to solving the causes of disputes and delays in construction projects. The findings of this paper recommend that both public and private stakeholders in the construction sector adopt blockchain technologies and blockchain-based Building Information Models (BIMs) to improve construction workflows and processes.

Integration of Blockchain-Enabled Smart Contracts in Construction: SWOT Framework and Social Network Analysis

“…• Malicious attacks/Cybersecurity: The integration of digital technologies in the construction industry may lead to substantial economic consequences due to its susceptibility to cybercriminal attacks [38]. Ensuring robust security measures is imperative to prevent unauthorized access and protect against breaches, thereby mitigating the peril of compromised contract integrity and associated losses [23,37,194].…”

“…• Lack of interoperability: This refers to the inability of different BC networks, applications, or platforms to seamlessly communicate and interact with each other [38]. In essence, BCs often operate in isolation with no standardized protocols or methods for sharing data, assets, or executing transactions across different BC ecosystems.…”

“…• Connectivity and bandwidth: BC often requires continuous internet connectivity to operate efficiently, which can be problematic in remote or construction site environments with limited access to high-speed internet. Thus, it may impact the real-time execution and management of SCs, potentially leading to delays and operational challenges [38].…”

“…Moreover, it is noteworthy to highlight that while some studies focus exclusively on qualitative research [31][32][33], others adopt quantitative methods, using statistical analyses to review the literature without qualitative techniques like interviews or thematic content, as highlighted in Shishehgarkhaneh et al [34] and Ameyaw et al [35]. Meanwhile, a third group integrates both approaches, notably [36][37][38][39][40], highlighting the methodological diversity in the field. This diversity, while enriching, leads to a lack of consistency and cohesion, which impedes the effective comparison and integration of findings.…”

Automated Construction Payment Using Blockchain-Enabled Smart Contracts and Building Information Modelling

“…Various academics have looked into blockchain technology and smart contracts in order to address these challenges. According to several studies, blockchain technology has the potential to improve BIM workflows in construction projects by providing consistent and immutable design records (Nawari and Ravindran, 2019;Pattini et al, 2021;Mohammed et al, 2021). Hargaden et al (2019) discussed the potentials of blockchain technology in the construction industry and its adoption feasibility through use cases.…”