Torkanfar, N; Azar, E R and McCabe, B (2023) Bidchain: A blockchain-based decentralized application for transparent and secure competitive tendering in public construction projects. Journal of Construction Engineering and Management, 149(7): 04023050, ISSN 0733-9364
Abstract
Deficiencies of tendering systems in public projects can leave governments with subsequent issues in projects and waste taxpayers' money. Electronic tendering (e-tendering) systems have been found beneficial for awarding public projects; however, current practices still have deficiencies. Legal and security issues and the lack of transparency have been identified as the main shortcomings in current tendering practices. This paper argues that the underlying issue with e-tendering systems is due to their centralized nature. Therefore, this research presents a critical assessment of the blockchain technology in developing distributed e-tendering systems and proposes a novel framework for decentralizing e-tendering systems. The proposed framework is created by integrating three technologies: blockchain, public key infrastructure (PKI), and interplanetary file system (IPFS). Using the proposed framework, a decentralized application (DApp) is developed to demonstrate the concept and evaluate the potentials of blockchain in mitigating the security and legal challenges and improving transparency and trust. The result shows that the reliance on centralized authorities for managing the tendering process is reduced in a blockchain-based e-tendering system, and a transparent and tamper-proof record of the tendering history is distributed among parties.
| Item Type: | Article |
|---|---|
| Index terms: | tendering system, blockchain, tendering process, public construction, competitive tendering, transparency, e-tendering, history, public project |
| Subjects: | architectural and construction history, tendering, building construction, information systems, professional development, infrastructure engineering, computing systems |
| Topics: | Engineering Principles, Information Management, Procurement, Research Practice, Digital Applications |
| Descriptive scope: | 3 PCT |
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