BLOCKCHAIN APPLICATION FOR CONTRACT SCHEMES IN THE CONSTRUCTION INDUSTRY

Abstract

The proposed research aims at illustrating how Blockchain technology can support the contract execution optimizing and assuring a transparent information flow during the phases of the construction process. The traditional approach, chased in the industry, is indeed more hierarchical than networked, resulting in a high fragmentation of contracts and the break of companies in numerous tiers. This context prevents effective collaboration, hindering the achievement of the project objectives. The recent digital transition, guided by Building Information Modeling (BIM), has promised the creation of a shared environment for the information created and exchanged during the entire process, in favor of collaboration and reduction of critical issues typical related to the sector. Despite the initial promises, the use of BIM has shown problems related to trust and transparency of information, not encouraging participants to collaborate in meeting common goals. For these reasons, the study aims to investigate the potential of Blockchain technology in the management of the information flow to ensure transparency and stability of the process. The research proposes four frameworks showing how Blockchain can be integrated with the construction contract to support the execution of each phase, highlighting the improvement of information sharing, traceability of each activity or service and support for collaboration.