Wahab, A; Wang, J; Shojaei, A and Ma, J (2023) A model-based smart contracts system via blockchain technology to reduce delays and conflicts in construction management processes. Engineering, Construction and Architectural Management, 30(10), pp. 5052-5072. ISSN 0969-9988
Abstract
Purpose: Smart contracts using blockchain technology (BCT) is a tool that decentralizes authority and makes it easier to upgrade the contract administration process by providing an efficient system. Current literature provides a good overview of contracts in the construction industry; however, the specific details of BCT's smart contracts applications in the three categories have not been addressed adequately: (1) information quality, (2) enhancing project schedule and progress payment time and (3) reducing conflicts among project stakeholders. Thus, this study aims to analyze smart contracts using BCT by creating a computerized contract model, specifically evaluating its impact on the three identified categories. Design/methodology/approach: In this paper BCT-SmContract was developed through an automated program that utilizes blockchain to define the contractual agreements between different parties in a construction project. BCT-SmContract model provides a new technique to overcome the current challenges associated with factors identified in this study, i.e. (1) information quality, (2) enhancing project schedule and progress payment time and (3) reducing conflicts among project stakeholders. Afterward, the model was tested to ensure validity and reliability through a construction project. Findings: The findings indicated that BCT-SmContract was approximately 90% faster to execute the contract and 100% accurate in reflecting the correct information about the project status, resulting in reduced conflicts. Originality/value: This study has contributed in upgrading the traditional contracting method in construction by developing an automated smart contract model to enhance the processes and achieve higher accuracy.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | blockchain technology; case study; categories; construction management processes; contracts model; smart contracts |
| Index terms: | accuracy, upgrading, project stakeholder, methodology, construction project, program, traditional contracting, validity, case study, contract administration, agreements, blockchain, smart contract, construction industry |
| Subjects: | digital technology, contract formation, contractual arrangements, strategic management, evaluation and assessment methods, data collection methods, computing systems, sociology, industry analysis, research methods, software systems, contract management, professional development, production management |
| Topics: | Procurement, Stakeholder Management, Research Practice, Project Management, Information Management, Business Strategy, Contract Administration, Digital Applications |
| Descriptive scope: | 5 PCTEA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here