Olusola, J. and Phung, Q. (2026) A framework for adopting smart contracts in the Nigerian construction industry. International Journal of Construction Management, 26(7), pp. 1284-1298. ISSN 1562-3599
Abstract
The construction industry in developing countries continues to face significant challenges due to reliance on traditional, paper-based contract administration and management. This approach frequently results in inefficiencies, disputes, transparency issues and unethical practices. Although smart contracts enabled by blockchain technology present a promising solution to these longstanding issues, their adoption in developing countries remains limited. This study investigates the barriers to and strategies for the implementation of smart contracts within the construction industry, using Nigeria as a representative case. Adopting a qualitative research methodology, data were collected through semi-structured interviews with 14 experienced project managers selected via purposive sampling. A thematic analysis of the data identified several critical barriers, including resistance to change, low awareness, privacy concerns, legal uncertainties, technical hurdles, infrastructure deficits and economic instability. To overcome these barriers, the study proposes a strategic implementation framework informed by insights from interviewees and supported by literature. Key recommended strategies include educational and awareness initiatives, governmental support and policy reform, stakeholder collaboration, robust security measures, phased deployment and establishing supportive legal frameworks. The findings of this research offer valuable guidance for developing countries encountering similar constraints, providing a clear roadmap for successfully integrating smart contracts into construction practices.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | automation; blockchain; contract management; digital transformation; Nigeria; project management; smart contracts; technology adoption |
| Index terms: | face, strategy, developing country, interview, contract management, methodology, qualitative research, collaboration, thematic analysis, privacy, dispute, transformation, Nigeria, contract administration, project manager, construction industry, implementation, purposive sampling, smart contract, automation, unethical practices, transparency, blockchain, technology adoption, project management |
| Subjects: | research methods, development economics, contract management, automation and robotics, Geography, professional ethics, psychology, digital technology, ethical practice, innovation and technology management, contractual arrangements, management, professional development, project management theory and practice, methods and analysis, industry analysis, business, research design and methodology, data collection methods, profession, computing systems, dispute resolution |
| Topics: | International Construction, Digital Applications, Contract Administration, Organizational Design, Research Practice, Information Management, Business Strategy, Roles and Professions, Legal Issues, Project Management, Geographical Context, Engineering Principles, Procurement |
| 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