Exploitation Blockchain and BIM Technology in Developing Construction Smart Contracts

Abstract

Poor payment practices are perceived as one of the biggest challenges facing the construction industry. This research proposes a framework that improves the contract management process and enhances construction projects’ cashflow. The proposed framework encompasses three main scenarios to explore the benefits of the framework based on the level of framework’s adoption in the construction industry. The developed framework has the potential to reduce the problem of poor payment practices, time-barring of some contract clauses, record keeping and paperwork. A case study is presented to illustrate the main features of the proposed framework. The results of the case study reveal that the first scenario could save a portion of banking transactional fees of invoices as they are significantly higher than blockchain transaction fees. Whereas the second scenario shows an enhanced cash flow with less overdraft values due to the secured payments through blockchain. Finally, the third scenario have much less overdraft due to the expedited works approval that leads to shorter cashflow cycle.