ChapterPDF Available

An Implementation of Smart Contracts by Integrating BIM and Blockchain

Authors:

Abstract and Figures

This paper presents an implementation of smart contracts by integrating BIM and blockchain. After briefly reviewing the literature regarding blockchain technology, smart contracts, and integration of the BIM and blockchain, a blockchain network using Hyperledger fabric is proposed and tested to govern a sample construction project. The proposed framework does not utilize the cryptocurrency aspect of the blockchain as the payment form. Instead, it discusses the integration of the current banking system and the use of fiat currencies in transactions. The results show that blockchain is a viable system for governing construction project contracts by automating the consequences of each transaction and maintaining a tamper proof record of project progress, which would be valuable in any kind of dispute resolution. The blockchain network developed in this study implements the smart contract as its network operation logic. As a result, the notion of having to translate all the traditional contract clauses to the computer program is shown to be unnecessary and to some extent not suitable for construction, due to the complexity, fluidity, and high uncertainties involved in each project.
Content may be subject to copyright.
An Implementation of Smart Contracts
by Integrating BIM and Blockchain
Alireza Shojaei
1(&)
, Ian Flood
2
, Hashem Izadi Moud
2
,
Mohsen Hatami
2
, and Xun Zhang
2
1
Building Construction Science, College of Architecture, Art and Design,
Mississippi State University, Starkville, MS 39762, USA
shojaei@caad.msstate.edu
2
M. E. Rinker, Sr. School of Construction Management, University of Florida,
P.O. Box 115703, Gainesville, FL 32611, USA
{flood,izadimoud,mohsen.hatami,xzz0032}@ufl.edu
Abstract. This paper presents an implementation of smart contracts by inte-
grating BIM and blockchain. After briey reviewing the literature regarding
blockchain technology, smart contracts, and integration of the BIM and
blockchain, a blockchain network using Hyperledger fabric is proposed and
tested to govern a sample construction project. The proposed framework does
not utilize the cryptocurrency aspect of the blockchain as the payment form.
Instead, it discusses the integration of the current banking system and the use of
at currencies in transactions. The results show that blockchain is a viable
system for governing construction project contracts by automating the conse-
quences of each transaction and maintaining a tamper proof record of project
progress, which would be valuable in any kind of dispute resolution. The
blockchain network developed in this study implements the smart contract as its
network operation logic. As a result, the notion of having to translate all the
traditional contract clauses to the computer program is shown to be unnecessary
and to some extent not suitable for construction, due to the complexity, uidity,
and high uncertainties involved in each project.
Keywords: Building Information Modeling Blockchain Smart contract
BIM Cyber-physical space
1 Introduction
The construction industry is lled with legal disputes. Disputes can result from a wide
range of issues such as ambiguity in the terms of the contract, late payments, late or
underperforming delivery of work, to name but a few. One of the proposed solutions to
improve the current working environment is smart contracts. A smart contract can be
dened as a computer program with if/then structure which administers the contract
clauses. Once a party executes its tasks, it asks for inspection, and upon verication, a
payment would automatically be issued. The advantage of such a system is its clarity
and enforceability which may result in smoother contract execution and a signicant
reduction in disputes. Building Information Modeling (BIM) due to its data-intensive
©Springer Nature Switzerland AG 2020
K. Arai et al. (Eds.): FTC 2019, AISC 1070, pp. 519527, 2020.
https://doi.org/10.1007/978-3-030-32523-7_36
nature and the level of details presented in an appropriate model is an excellent way to
tie different sections of the work to a smart contract. However, a secure and proper link
between the BIM model, the physical work, and the smart contract is needed to make
such a system viable. Blockchain has been successfully implemented in supply chain
management in different industries to connect stakeholders and facilitate storage and
sharing of information. This study aims to test the feasibility of blockchain technology
as the link between the BIM model and the physical world with the implementation of
smart contracts as the business logic of the blockchain network.
The rest of this paper is organized as follows. First, an overview of the blockchain
technology, smart contracts, and the current state of knowledge regarding the inte-
gration of BIM and blockchain is presented. Then, a blockchain network for connecting
the BIM model to the physical world based on the Hyperledger Fabric platform is
discussed with a presentation of a sample implementation of smart contracts that
integrates BIM and blockchain. At last, the paper concludes with discussing the results,
research limitations, and future direction for research.
2 Blockchain Technology
Enforcement of trust throughout the construction industry is always challenging. One
way to ensure trust among all parties is by using blockchain technology in construction
contracts. Blockchain is a database technology that provides smart and coded schemes
to verify and store transactions throughout chains of communications. Blockchain is a
Distributed Ledger Technology (DLT), which is simply a database of transactions.
Blockchain transactions are stored on different nodes of the network, which makes it a
fully decentralized system. Transactions are regularly synchronized, keeping the sys-
tem up to date at all times. A blockchain network is secure as it uses cryptography to
store and transfer all the transactions throughout its decentralized network and the data
is tamper proof due to the consensus system and chain-like data sequence [1,2]. In
order for a transaction to be executed, all the nodes in the network need to process that
transaction. The fact that DLTs are not owned by specic parties, are fully decen-
tralized and coded, makes them a suitable platform for contracts. Trust in contracts is
instilled in people, organizations, and authorities who are prone to error, corruption,
and misuse. However, trust in DLTs are based on coded transactions that are not owned
by anyone and executed through a chain of distributed nodes [1,2]. Blockchain
technology is widely used in cryptocurrencies, most notably bitcoin. While the rst
version of blockchain started with cryptocurrencies, blockchain technology has pro-
foundly evolved throughout the years. Blockchain 1.0 was the basis of the Bitcoin,
blockchain 2.0 introduced the idea of smart contracts through blockchain with Ether-
eum (a blockchain-based distributed computing platform). Blockchain 3.0 goes beyond
smart contracts and tries to apply blockchain to areas such as healthcare, culture, and
government.
Enforcement of trust, distribution of power among different parties (nodes) and its
cryptographic nature have made blockchain technology a promising platform for smart
contracts within the Architecture, Engineering, and Construction (AEC) domain. Also,
the full digitalization of transactions provides a door to the future of transactions which
520 A. Shojaei et al.
the AEC industry needs to move towards it [1,3,4]. The characteristics of blockchain
along with its evolution through introducing different versions that can easily
accommodate different needs helped spread the application of blockchain across
multiple disciplines. Currently, blockchain is being used for record keeping, supply
chain transparency, smart grid distribution, money tracking, voting, and insurance
industries [5]. While numerous advantages have been mentioned for blockchain
technology, there are some downsides that might slow down its adoption in the AEC
industry. For example, depending on the consensus algorithm in use, conrming a
transaction might take a long time. Also, applying blockchain technology in the AEC
industry, which is fairly technology-resistant, might inhibit the adoption of this new
approach.
3 Smart Contracts
Smart contracts are computer protocols that verify, simplify, and enforce the perfor-
mance or negotiation of a contract or eliminate the unforeseen clauses in the contract
[6]. Smart contracts comprise several transactions taking place between veried parties;
they usually vary widely in scale and complexity and are executed by computer codes
[1]. According to Sklaroff [7], a transition from human-language contracts to
technology-based system contracts creates new disorganizations. These issues arise
from the following features of smart contracts: (1) automation, which requires all
agreements be formed by fully-dened terms; (2) decentralization, which requires the
verication of job performance by third parties; and (3) anonymity, which reduces the
dependency of the contract on the commercial context it is being used. As a result, a
semi-automated system is the likely outcome in the short and medium term [8]. In order
to encode the parameters of a contract by a programmer, smart contracts commonly
omit the necessity of administrative staff and expenses. By automating the execution of
the contract, it can be interpreted that smart contracts are legal self-help agreements
outside the obligation of the law. Subsequently, computer codes are used to write them,
which are not legal languages of contract law.
The ultimate mission of smart contracts is to replace traditional contracts with a
new method of technological contract. Through this process, smart contracts enable
companies to operate with signicantly fewer disputes and need for law enforcement or
court intervention. They can even negotiate with other parties autonomously (or other
partiessmart contracts) [7]. The AEC industry needs to adapt to the digital age
effectively in order to improve its productivity. One of the most benecial aspects of
using smart contracts is that understanding the contract and its implications would be
much easier than reading the common contractual language. Furthermore, it is not
necessary to know how the smart contract works in order to use and trust it. The users
of smart contracts are not supposed to know the coding structure and complicated
algorithms needed for it to work. An excellent example of this advancement in daily
life is a car which can be used without knowing the details of how its internal parts
work [9].
According to Lynch [10], the construction industry has several issues regarding its
reputation, such as a lack of trust, being unfair to subcontractors, and a slow rate of
An Implementation of Smart Contracts by Integrating BIM 521
change in comparison with other industries. Due to the lack of exibility in smart
contracts, a signicant challenge will remain in the technologys scalability [7]. Also,
because of the nature of construction projects regarding existing numerous uncer-
tainties in each project, smart contracts in their current state are not perceived as
suitable for complex contracts [11]. Smart contracts for construction purposes have
been considered concerning various components including the automation of contract,
the execution, programming, payment, and certication [12,13]. According to Fox
[12], by using smart contracts, the scope, type, and size of a contractsdispute will be
signicantly reduced. By using smart contracts, the dependency on intermediaries such
as lawyers and cost estimators would be decreased, which will result in both time and
cost savings.
4 BIM and Blockchain
As a digital model that integrates many sources, Building Information Modeling
(BIM) provides an exchange platform of information that allows different disciplines to
collaborate and solve design and construction issues. To protect the digital intellectual
properties of different stakeholders, legal information management is critical in case of
disputes and litigation among the numerous and ne-grained contributors involved in
the collaboration process [14]. It is widely accepted that the legal uncertainties and
model ownership management are the main barriers to BIM adoption [15]. The
implementation of BIM needs more trust among different stakeholders in the design
and construction industry [16].
According to Barnett [17], the main areas of research on the use of blockchain in
construction include: designing a common data environment, automated dispute res-
olution, and automated regulation and compliance. The strength of blockchain is to
solve the issues of trust, which has the potential to bridge the barriers in BIM adoption
[2]. Ramage [18] points out that the centralized ledger of standard forms of a contract
results in an expensive and time-consuming process. Mason [9] proposes to build
intelligent contracts between different participants and to develop a trust-based model
to enhance the legal reliability of BIM. The author believes that as a distributed ledger
technology, blockchain can be used as the basic infrastructure that helps smart contracts
be executed without the common payment systems such as banks [9].
Previous studies cite several pieces of evidence in both academia and industry that
support blockchain integration with BIM [3,19]. Mathews [16] believes that since
blockchain is an efcient way to solve the problem of trust, its combination with BIM
allows innovation to evolve and challenge the boundaries, and hierarchies of the
industry. Turk and Klinc [2] point out that blockchain has the potential to address some
of the issues that discourage the design and construction industry from using BIM,
including condentiality, provenance tracking, disintermediation, non-repudiation,
multiparty aggregation, traceable inter-organizational recordkeeping, change tracing,
data ownership, etc. Blockchain integration with BIM and other rapidly advancing
technologies will push the industry towards leaner procurement systems with improved
collaboration. As a result, there will be more control and transparency regarding the
cost and duration of the projects by eliminating intermediate parties, which also reduces
522 A. Shojaei et al.
the overall cost of projects. Mathews et al. [20] hold the view that BIM and now
blockchain offer real solutions in pushing forward the oncoming digital transformation.
The authors also express that the implementation of blockchain will impact the building
and construction industries just as it did the nance, insurance, health, and education
sectors [20].
5 Smart Contract Implementation Model
Public blockchain networks that require every node to execute every transaction and
maintain the ledger while controlling the consensus have their own limitations. For
instance, they cannot scale properly, and they cannot support private and condential
transactions and contracts. Due to the nature of projects in construction and the
importance of transaction condentiality, it is more reasonable to look for private rather
than public permission based blockchain solution in the AEC industry. In this study, a
private, permission based blockchain, using Hyperledger fabric [21] is deployed, which
is modular, scalable, and secure. In contrast to the common blockchain networks such
as Bitcoin, where the network members are secret, and transactions are public, in the
framework proposed and tested in this research the network members are known, but
the transactions are secret (unless you have permission to view it). In other words, the
network is private, and the membership is controlled. As a result, the business partners
know who they are dealing with, but the detail of each transaction is known only to the
parties involved in that transaction.
The literature reviewed in the smart contract section shows that the perception of
smart contracts is a hard coded computer program that executes the contract clauses. In
the implementation used in this study, the smart contract is basically the logic gov-
erning the network that is encoded within itself; it also relies on peers for verication.
In other words, the method used here is to some extent can be considered as a semi-
automated contract where the execution and verication of obligations are done by
peers inside the network, but the blockchain network controls the consequence of their
actions upon verication. The advantage of such a system is that in addition to being
exible and versatile enough to scale to any construction project, it has consequence-
based autonomy and tamper proof record keeping which are a signicant improvement
to the current state of practice in the AEC industry. It is also worth mentioning that in
adopting smart contract and blockchain in industrial applications, there is no need to
use the cryptocurrency aspect of the blockchain, and monetary compensations can be
executed through traditional channels such as electronic deposits. Figure 1shows the
network structure proposed and tested in this study where seven participant types are
dened, namely, client, architect/engineer, General Contractor (GC), regulators,
inspectors, suppliers, and sub-contractors. More than one peer is assigned the role of
sub-contractor, regulator, supplier, and inspector. The types of transaction requests and
endorsement ability (verication of other transactions) that each peer has is different
based on their role in the network. For instance, the GC can request a transaction for the
work executed, but only the inspectors can endorse and approve that transaction.
Figure 2shows the sample BIM model used in this study and highlights a column
on the third oor of the building under consideration. By assigning a unique ID to each
An Implementation of Smart Contracts by Integrating BIM 523
element as their identiers, the BIM model is tied to the physical world by the
blockchain. The highlighted column is IDed as A-121. The linked list of blocks are also
presented in Fig. 2, where each block describes a transaction that is already endorsed
by the appropriate parties and now is part of the blockchain. The workow process
starts with the client requesting the notice to proceed transaction for the project and
upon endorsement by the GC, and appropriate regulatory peers, the rst block is
Fig. 1. Network structure.
Fig. 2. BIM structure and the corresponding blockchain of the column A-121
524 A. Shojaei et al.
created. The blockchain continues to grow as the project progresses. To better
understand the process, the blocks related to the column A-121 will be discussed in
more detail. The process starts with the Subcontractor/GC requesting a transaction for
purchasing the column. Upon endorsement by the supplier, that block is created. The
next transaction would be requested by the supplier when the column is shipped and
endorsed by its peers. Then, upon delivery of the material to the job site, the supplier
requests another transaction that relates to the delivery of the column and request for
the payment. Upon the endorsement of this transaction by the GC, the fund would be
transferred to the supplier, and also the appropriate funds would be transferred from the
client to the GC for the material on site. The GC requests the last transaction in this
case upon the erection of the column, which then needs to be endorsed by the inspector.
The use of smart contracts in the construction industry and especially implementing
it by blockchain is a novel approach. In a recent study, Lou et al. [22] discussed
automating construction payments through a smart contract based blockchain frame-
work. While both this study and Lou et al. [22] uses permission-based blockchain to
facilitate smart contract enforcement and automate the payment process, this study
departs in integrating BIM model into the contract and create a cyber-physical space for
administrating the project through the blockchain network.
6 Conclusion
The smart contract implementation model discussed in this paper is generic and ver-
satile in a manner that can be applied to any construction project with minimal
adjustments, such as updating the payment amounts. The framework can be easily
matched to the structure of any project by adjusting the parties involved, type of
transactions and endorsements, and the value of each transaction. However, the
structure of the blockchain network designed in this research reects a design-bid-build
delivery system at the construction stage. Further research is needed to adopt block-
chain technology to other procurement methods and also possibly to extend its
application to the design and operation stages of the building lifecycle. Also, the smart
contract implementation and consensus system used in this study are by no means
optimal, and it is only adopted as a starting point to show the feasibility of the
approach. Further work is needed to identify the optimal network structure and con-
guration that matches the characteristics of the AEC industry. This paper proposed a
conceptual framework with a limited empirical test to test its viability. More extensive
empirical tests and renement is needed to polish the framework and make it opera-
tional. The structure of the network in this study is designed from the perspective that
the project is an organization and all the parties involved play their part as a node in
that organization. The Hyperledger fabric allows multiple organizations to operate in a
network or multiple networks to interact with each other. As a result, one direction for
future research would be modeling the construction process where each party is dened
as an organization with its own network and the project workow is modeled through
the interaction between the different blockchain networks. Overall, it is shown how
blockchain can be used in a semi-automated to implement smart contracts in a con-
struction process. In a way, it can be used to link the physical and digital world (BIM
An Implementation of Smart Contracts by Integrating BIM 525
Model) to maintain and control the cyber-physical space. Also, more automation can be
achieved by integrating IoT, RFID, and other sensory technologies where departure,
arrival, and inspection of the material, and workmanship can be streamlined.
References
1. Lamb, K.: Blockchain and Smart Contracts: What the AEC sector needs to know (2018)
2. Turk, Ž., Klinc, R.: Potentials of blockchain technology for construction management.
Procedia Eng. 196(June), 638645 (2017)
3. Shojaei, A.: Exploring applications of blockchain technology in the construction industry.
In: Interdependence Between Structural Engineering and Construction Management (2019)
4. Lia, J., Greenwood, D., Kassem, M.: Blockchain in the built environment: analysing current
applications and developing an emergent framework. In: Proceedings of the Creative
Construction Conference, pp. 5966 (2018)
5. Johansson, J., Nilsson, C.: How the blockchain technology can enhance sustainability for
contractors within the construction industry (2018)
6. Meitinger, T.H.: Smart contracts. Informatik-Spektrum 40(4), 371375 (2017)
7. Sklaroff, J.M.: Smart contracts and the cost of inexibility. U. Pa. L. Rev. 166, 263 (2017)
8. Mason, J.: Smart contracts in construction: views and perceptions of stakeholders. In:
Proceedings of FIG Conference, May 2018
9. Mason, J.: Intelligent contracts and the construction industry. J. Leg. Aff. Disput. Resolut.
Eng. Constr. 9(3), 04517012 (2017)
10. Lynch, P.: HGCRA: re-addressing the balance of power between main contractors and
subcontractors. Msc, National Academy for Dispute Resolution (2011)
11. Gabert, H., Grönlund, H.: Blockchain and smart contracts in the Swedish construction
industry (2018)
12. Fox, S.: Why construction needs smart contracts | NBS. https://www.thenbs.com/
knowledge/why-construction-needs-smart-contracts. Accessed 05 Jul 2019
13. Ahmadisheykhsarmast, S., Sonmez, R.: Smart contracts in construction industry. In: 5th
International Project &Construction Management Conference, pp. 767774 (2018)
14. Thomas, L.W.: Legal issues surrounding the use of digital intellectual property on design
and construction projects, no. 58 (2013)
15. Redmond, A., Hore, A., Alshawi, M., West, R.: Exploring how information exchanges can
be enhanced through Cloud BIM. Autom. Constr. 24, 175183 (2012)
16. Mathews, M.: Building information modeling technology and blockchain IEBC. https://
iebc.co/bim-and-blockchain/. Accessed 05 Jul 2019
17. Barnett, J.: Blockchain for BIM | Smart Contracts Lawyer. http://www.jeremybarnett.co.uk/
blochain-for-bim-smart-contracts-lawyer. Accessed 05 Jul 2019
18. Ramage, M.: BIM and blockchain. in construction. https://constructible.trimble.com/
construction-industry/from-bim-to-blockchain-in-construction-what-you-need-to-know.
Accessed 05 Jul 2019
19. Wang, J., Wu, P., Wang, X., Shou, W.: The outlook of blockchain technology for
construction engineering management. Front. Eng. Manag. 4(1), 67 (2017)
526 A. Shojaei et al.
20. Mathews, M., Robles, D., Bowe, B.: BIM+Blockchain: a solution to the trust problem in
collaboration? In: BIM+Blockchain: A Solution to the Trust Problem in Collaboration?,
p. 11 (2017)
21. Androulaki, E., et al.: Hyperledger fabric: a distributed operating system for permissioned
blockchains. In: Proceedings of the Thirteenth EuroSys Conference, p. 30 (2018)
22. Luo, H., Das, M., Wang, J., Cheng, J.C.P.: Construction Payment Automation through
Smart Contract-based Blockchain Framework (2019)
An Implementation of Smart Contracts by Integrating BIM 527
... Furthermore, a segment of the literature focuses on specific applications of BSC, neglecting other potential applications. For instance, payment applications, as explored by [4,[52][53][54], supply chain, as outlined in the works of [5,[55][56][57], as well as integration with other technologies [28,53,[58][59][60][61][62][63]. Such focused research underscores the literature's gap, showing a lack of comprehensive, cross-contextual analysis that could provide a holistic understanding of BSCs across different thematic areas. ...
... Integrated technology-IOT [1, 4, 9, 10, 14-16, 21, 28-31, 34, 37, 38, 40, 44, 47, 48, 56, 59, 60, 62, 63, 65, 69, 73, 86, 95, 97, 102, 106, 108, 113, 118, 121, 130, 131, 134, 142, 145, 155, 163-165, 167, 168, 170, 172, 174, 176, 179, 180, 186, 189, 193, 194] Forms the cornerstone of a proactive and data-driven approach to construction project management. [29,30,34,58,61,120,178] Digital Twin Offers real-time project insights, proactive decision-making, real-time progress, automatic payment triggers, and change order management. ...
... Error-coding of SCs [14,15,19,29,31,33,36,38,50,55,101,103,108,116,138,142,150,163,181,182,194] 21 7 Lack of trust/ hesitation [21,27,40,45,48,49,58,69,106,107,111,138,148,151,154,170,196] ...
Article
Full-text available
The construction sector, one of the most ancient industries globally, holds a crucial role in the progress and development of societies. However, it faces persistent productivity and efficiency challenges, rendering it a relative setback when compared to other sectors. In the ever-evolving landscape of the construction industry, characterized by complex projects, numerous stakeholders, and intricate contractual agreements, the integration of emerging technologies presents an unprecedented opportunity for transformation. Smart contracts (SCs), underpinned by blockchain (BC) technology, hold the potential to streamline and revolutionize traditional construction processes. Current literature shows a lack of comprehensive quantitative understanding of how Blockchain-enabled Smart Contracts (BSC) can affect the construction sector. To address this gap, the authors have (1) conducted a systematic keyword analysis of literature on SC in construction from Scopus and Web of Science (WoS) databases; (2) conducted a strengths–weaknesses–opportunities–threats (SWOT) analysis of BSC’s adoption in the construction industry from 174 peer-reviewed papers; (3) identified a holistic list of 72 factors steering BSC adoption in construction, categorized into the 4 aspects of the SWOT framework; (4) performed social network analysis (SNA) to quantitively assess the literature in terms of the identified factors; and (5) conducted clustering analysis to categorize combination of factors frequently highlighted in research publications into common groups. This research offers a comprehensive and methodical evaluation of the potential advantages, applications, and challenges associated with integrating BSC in the construction industry. The findings of SNA and clustering reveal a notable lack of investigation into certain combinations of factors in existing academic research. This disparity and the ensuing knowledge gaps may affect SC’s adoption in the construction sector. To this end, this study equips stakeholders with the insights necessary to make informed decisions in this rapidly evolving sector and contributes to a roadmap for future BSC construction-related research. Doi: 10.28991/CEJ-2024-010-05-020 Full Text: PDF
... blockchain technology, recognized for its abilities in data security, providing immutability and supporting decentralized operations, emerges as a promising solution. Its application in healthcare, cybersecurity and transportation sectors has demonstrated potential benefits that could be extended to construction project management (Shojaei et al., 2020). ...
... Its foundational principle of a decentralized ledger has revolutionized financial industries and extended its utility to safeguard privacy and enhance security across varied sectors. Recent scholarly inquiries have expanded upon this foundation, exploring its efficacy in domains such as personal information protection (Wang et al., 2022), cyber-defense (Safa et al., 2019), healthcare (Mahmudnia et al., 2022), public services (Nanayakkara et al., 2019;Azizi et al., 2021;Shyamasundar and Patil, 2018), electronic voting (Shojaei et al., 2020;Lu et al., 2021a) and governmental database management (Lu et al., 2021b). ...
Article
Purpose-This study aims to introduce and evaluate the COPULA framework, a construction project monitoring solution based on blockchain designed to address the inherent challenges of construction project monitoring and management. This research aims to enhance efficiency, transparency and trust within the dynamic and collaborative environment of the construction industry by leveraging the decentralized, secure and immutable nature of blockchain technology. Design/methodology/approach-This paper employs a comprehensive approach encompassing the formulation of the COPULA model, the development of a digital solution using the ethereum blockchain and extensive testing to assess performance in terms of execution cost, time, integrity, immutability and security. A case analysis is conducted to demonstrate the practical application and benefits of blockchain technology in real-world construction project monitoring scenarios. Findings-The findings reveal that the COPULA framework effectively addresses critical issues such as centralization, privacy and security vulnerabilities in construction project management. It facilitates seamless data exchange among stakeholders, ensuring real-time transparency and the creation of a tamper-proof communication channel. The framework demonstrates the potential to significantly enhance project efficiency and foster trust among all parties involved. Research limitations/implications-While the study provides promising insights into the application of blockchain technology in construction project monitoring, future research could explore the integration of COPULA with existing project management methodologies to broaden its applicability and impact. Further investigations into the solution's scalability and adaptation to various construction project types and sizes are also suggested. Originality/value-This research offers a comprehensive blockchain solution specifically tailored for the construction industry. Unlike prior studies focusing on theoretical aspects, this paper presents a practical, end-to-end solution encompassing model formulation, digital implementation, proof-of-concept testing and validation analysis. The COPULA framework marks a significant advancement in the digital transformation of construction project monitoring, providing a novel approach to overcoming longstanding industry challenges.
... Since machines can also hold addresses, they could participate in intelligent legal contracts and commit to work packages. The construction literature has explored the use of smart legal contracts (Shojaei et al., 2020;Allen and Hunn, 2022), also referred to as intelligent contracts (Mason, 2017;McNamara and Sepasgozar, 2021), to automatically execute encoded conditions for contract administration (Msawil et al., 2022) or automated contracting (Gupta and Jha, 2023). ...
Article
Full-text available
This paper presents a first conceptualization for decentralized project delivery through the combination of blockchain technology and common pool resource governance theory, also known as the "crypto commons". While previous literature on project delivery models identifies the use of decentralized governance, there is not yet a holistic conceptualization nor a specific overview of governance applications that can be applied. To develop the concept, we use a literature review to synthesize fourteen blockchain governance mechanisms useful for managing the crypto-commons. Subsequently, we use systematic combining to identify twenty-two specific applications for decentralized project delivery in the construction industry, one of the largest project-based industries. Each application is briefly reviewed, and examples of their relevance to realize decentralized project delivery models are provided. We discuss the potential for novel forms of project delivery, but also the need for future research on the applications, as well as on the system level implications, the system design challenges, and the implementation barriers in the specific context of the construction industry. Overall, the concepts and mechanisms presented provide a theoretical foundation upon which future researchers can use to design novel decentralized project delivery models.
... The development of a decentralized crowdfunding system prototype was undertaken by researchers, who utilized blockchain technology and integrated smart contracts. This application aimed to address the needs of both fundraisers and funders inside crowdfunding systems [15]. In response to the pervasive problem of fraudulent academic credentials, the study proposes a potential remedy through the implementation of a blockchain-based e-transcript system. ...
... Wang et al., 2019;Z. Wang et al., 2020), BIM (Lee et al., 2021;Shojaei et al., 2019), payment management (Hamledari & Fischer, 2021), and safety (Wu et al., 2022). One recent study reported a 192 percent annual increase in the average number of blockchain-based academic publications from their first appearance in 2017 to 2020 (Scott et al., 2021). ...
Conference Paper
The architecture, engineering, and construction (AEC) industry is widely known for being fragmented. In this situation, blockchain technology has been introduced as a promising solution to bring trust and transparency to the industry. As blockchain technology continues to evolve, it has embraced new capabilities and features, including Fungible-Tokens (FTs) and Non-Fungible Tokens (NFTs), which have recently drawn significant attention in various industries. Tokenization can be seen as a next-generation solution to address challenges in the AEC. However, the application of tokenization for the AEC industry has remained undeveloped. To address this gap, this study provides an overview of tokenization, followed by an investigation of its applications in the AEC industry using a literature review method. By illustrating a clear outlook of the potential advantages and challenges, the study helps to set realistic expectations over the potential improvement that tokenization can bring. This can also serve as a fundamental source for further investigation by researchers and practitioners.
... During the maintenance stage, the primary advantage of blockchain was its ability to securely store sensor data that may be sensitive to privacy concerns. Shojaei et al. (2020) proposed a permission-based blockchain using Hyperledger fabric to support the idea of secure electronic deposits and transactions that do not necessarily use cryptocurrency. They considered a sample BIM instance model wherein they coded each element with a unique ID, which would then link it to the physical world of the blockchain. ...
... In recent years, Blockchain-based solutions have been employed for various applications within the context of the AEC industry. Some of these applications include supply chain management (Wang et al. 2019(Wang et al. , 2020, BIM (Shojaei et al. 2019;Lee et al. 2021), payment management (Hamledari and Fischer 2021), and safety (Wu et al. 2022). One recent study reported a 192 percent annual increase in the average number of blockchain-based academic publications from their first appearance in 2017 to 2020 (Scott et al. 2021). ...
Conference Paper
Digital Twins (DTs) have recently drawn considerable attention in the AEC industry and academia. Despite their applications, most models typically represent an isolated DT without considering how they can connect to other DTs, where they can share data. Blockchain-based solutions, and specifically Non-Fungible Tokens (NFTs), have provided various features that can be seen as a promising solution to build the lost bridge for data sharing between different stakeholders in DTs. This study capitalizes the advantages of NFTs to propose a framework for DT knowledge sharing. This framework is followed by providing future prospects of data management in the DT field. Our solution enables the ownership of various DT components, leading to the establishment of a secure data marketplace within the context of the AEC virtual world. This study can also serve as a fundamental source for further investigation by researchers and practitioners to develop an interoperable built Metaverse, where all DTs, in all Levels of Details, can exchange knowledge.
Article
Purpose Despite the unique features and potential applications in various industries, widespread blockchain adoption is hindered for several reasons. One of them is the lack of government regulations regarding blockchain and cryptocurrencies. However, a deliberate preliminary analysis of the policy initiatives by various jurisdictions proved otherwise, and a lack of sound academic literature on the policy initiatives on blockchain worldwide was evident. Addressing this gap, this study aims to summarize the policy initiatives of jurisdictions around the world, assessing if governments do not enact many regulations. Design/methodology/approach A systematic literature review was adopted in this study, in which the authors shortlisted a set of research papers and policy reports using several selection criteria and a screening process. Findings It was found that numerous policy initiatives have been enacted by governments worldwide, and blockchain applications are also being piloted or practiced successfully in several nations. It was also evident that governments are reluctant to accept cryptocurrencies as legal tender while embracing their underlying technology, blockchain. Originality/value To the best of the authors’ knowledge, this paper appears to be one of the first attempts to summarize the blockchain policy initiatives contributing to the body of knowledge on blockchain adoption.
Conference Paper
Many factors affect the progress and life cycle of a real-estate project. Therefore, evaluating such factors has become an indispensable and fundamental component of every firm operating in the real-estate industry. This paper aims at identifying and evaluating the control variables associated for the development of blockchain model applicable to construction projects. When a cutting-edge technology like blockchain is applied to this kind of job, it has the potential to become far more efficient. As a result, the purpose of this research is to develop a preliminary process framework that can direct users who are interested in utilising blockchain technology as a tool, as well as to identify the factors that influence the use of blockchain technology as a smart contract, supply chain management, and financing instrument tool by presenting them in the form of key performance indicators (KPIs). Eight major project factors like technology, organisation, finance, environment, BIM, data management and security, input–output, and project-process related have been identified. Subsequently significant KPIs have been identified under each category. Multi-criteria decision-making (MCDM) tool analytic network process (ANP) is used to establish the weights of the criterion based on the replies from three-stage questionnaire surveys performed among industry professionals working for prominent construction businesses in Ahmedabad, Gujarat, India. This study will reduce the possibility of time and cost overrun and enhance the probability of successful completion of a project within stipulated time and cost frame.
Conference Paper
Building Information Modeling (BIM) is a process that involves the creation and exchange of digital representations of physical and functional characteristics of buildings and infrastructure. BIM can facilitate the planning, design, construction, operation, and maintenance of buildings and infrastructure projects. However, BIM also poses new challenges and implications for the contractual relationships and obligations among the project parties. Therefore, there is a need for a framework and methods for BIM contract management and monitoring, which can address the issues and implications of BIM use and exchange, and ensure the successful implementation and adoption of BIM contracts. This article proposes a framework and methods for BIM contract management and monitoring, which consist of four phases: BIM contract planning, BIM contract execution, BIM contract control, and BIM contract closure. The article also describes and demonstrates the roles and functions of the methods for BIM contract management and monitoring, which include BIM Execution Plan (BEP), BIM Addendum, BIM Protocol, BIM Manager, BIM Team, BIM Dashboard, BIM Audit, and BIM Dispute Resolution. The article concludes with a discussion of the benefits and challenges of the proposed framework and methods, and the implications and recommendations for future research and practice. https://civilica.com/doc/1933763/
Article
Full-text available
Blockchain technology enables distributed, encrypted and secure logging of digital transactions. It is the underlying technology of Bitcoin and other cryptocurrencies. Blockchain is expected to revolutionize computing in several areas, particularly where centralization was unnatural and privacy was important. In the paper, we present research on where and how this technology could be useful in the construction industry. The work is based on the study of literature on open issues that exist in construction process management. These are than matched to the capabilities of blockchain. We are motivated by the fact that construction projects involve a dynamic grouping of several companies. We study the degree to which the relationships among them are hierarchical or peer-to-peer and note that particularly in information intensive phases, centralization of information management was necessary because of technology. When using un-constraining technology, communication patterns among participants show a peer-to-peer nature of the relationships. In such environment, blockchain can provide a trustworthy infrastructure for information management during all building life-cycle stages. Even if building information modelling (BIM) is used, which assumes a centralized building information model, there is a role for blockchain to manage information on who did what and when and thus provide a basis for any legal arguments that might occur. On the construction site blockchain can improve the reliability and trustworthiness of construction logbooks, works performed and material quantities recorded. In the facility maintenance phase, blockchain's main potential is the secure storage of sensor data which are sensitive to privacy. We conclude that blockchain provides solutions to many current problems in construction information management. However, it is more likely that it will be built into generic IT infrastructure on top of which construction applications are built, rather than used directly by authors of construction related software. It has a potential to make construction processes less centralized which opens needs for research in that direction.
Conference Paper
Full-text available
A construction contract facilitates payments through the supply chain by integrating people, activities, and events throughout the project period through obligations, permissions, and prohibitions in its terms and conditions. The management of payments is a manual process and is more difficult in the case of construction projects as different stakeholders at different levels of the project organizational structure are bound by different contracts. Moreover, payments are strongly affected by the lack of clarity in the definitions of the obligations, responsibilities, and liabilities of various stakeholders in construction contracts. This intensifies disputes and causes delays in construction payments leading to additional expenditure, cash flow problems, and lack of trust. Therefore, to address these problems, we propose a methodology to automate construction payments by formalizing them into smart contracts and executing on a decentralized blockchain based framework. We formalize the payment logic that binds the prohibitions and liabilities associated with financial commitments, such as interim payments on completion of tasks in a construction project, and convert it into a computer-executable code. A framework based on blockchain is used to host this smart contract and to automate actions such as the triggering of payments after achieving consensus among the relevant project stakeholders. This framework also address the conditions required for the security of information in construction projects, such as confidentiality and information integrity in a multi-party environment. The proposed framework is demonstrated through a case-based scenario.
Conference Paper
Full-text available
Blockchain provides a secure decentralized information management system that can solve many common problems facing the construction industry. The loose structure of the construction industry, the way that public and private projects are tendered, and the supply chain system it uses for material and service delivery provide unique challenges and problems. New information technology management systems such as BIM and RFID are used to address some of these issues, though not completely. Blockchain technology can be used to further improve the information management systems in construction, provide more automation and mitigate many possible legal conflicts by default. Implementation of blockchain technology in the construction industry can also result in the use of smart contracts with fewer administrative struggles, improve the flow of the project, material, and service delivery, and increase the security and currentness of BIM or project documents. This study aims to explore the applications of blockchain technology in improving the construction industry's information management systems. It is concluded that not only the blockchain technology has potential in addressing some of the common problems in the construction industry but also it is adaptable to the construction industry structure and the way it is practiced. Thus, blockchain technology is a viable option for adaptation in the construction industry.
Conference Paper
Full-text available
In construction industry, business failures are generally resulted in payments withheld or refused to be paid. By taking advantage of Blockchain technology, Cryptocurrencies and smart contracts in this industry such problems could be mitigated. Within the proposed framework, funding of each item of the contract is blocked unless the contractual conditions agreed upon are fully satisfied. Set of instructions and conditions could be coded in smart contracts such that payment will be made automatically only when the stipulated conditions are reached. This concept guarantees establishing a trustful chain of payments between the parties. Proposed concept also minimizes the time-cost overruns due to dispute reduction and maximize the trust between contract parties in construction industry. Although the construction industry is recalled as being slow at adapting to new technologies, the prospect of having a protection against late payments might be a driving force for acquiring the smart contracts. The proposed framework is and pros as well as cons of this framework is discussed in this study.
Conference Paper
Full-text available
Distributed ledger technology (DLT), commonly referred to as ‘blockchain’ and originally invented to create a peerto-peer digital currency, is rapidly attracting interest in other sectors. The aim in this paper is (1) to investigate the applications of DLT within the built environment, and the challenges and opportunities facing its adoption; and (2) develop a multi-dimensional emergent framework for DLT adoption within the construction sector. Key areas of DLT applications were found in: smart energy; smart cities and the sharing economy; smart government; smart homes; intelligent transport; Building Information Modelling (BIM) and construction management; and business models and organisational structures. The results showed a significant concentration of DLT research on the operation phase of assets. This is expected given the significant resources and lifespan associated with the operation phase of assets and their social, environmental and economic impact. However, more attention is required to address the current gap at the design and construction phases to ensure that these phases are not treated in isolation from the operational phase. An emergent framework combining the political, social and technical dimensions was developed. The framework was overlaid with an extensive set of challenges and opportunities. The structured and inter-connected dimensions provided by the framework can be used by field researchers as a point of departure to investigate a range of research questions from political, social or technical perspectives.
Article
The field of research has transformed over the last decades but which fundamentals do incoming researchers still need to master?