The use of Internet of Things (IoT) technology is crucial for improving energy efficiency in smart buildings, which could minimize global energy consumption and greenhouse gas emissions. IoT applications use numerous sensors to integrate diverse building systems, facilitating intelligent operations, real-time monitoring, and data-informed decision-making. This critical analysis of the features and adoption frameworks of IoT in smart buildings carefully investigates various applications that enhance energy management, operational efficiency, and occupant comfort. Research indicates that IoT technology may decrease energy consumption by as much as 30% and operating expenses by 20%. This paper provides a comprehensive review of significant obstacles to the use of IoT in smart buildings, including substantial initial expenditures (averaging 15% of project budgets), data security issues, and the complexity of system integration. Recommendations are offered to tackle these difficulties, emphasizing the need for established processes and improved coordination across stakeholders. The insights provided seek to influence future research initiatives and direct the academic community in construction engineering and management about the appropriate use of IoT technology in smart buildings. This study is a significant resource for academics and practitioners aiming to enhance the development and implementation of IoT solutions in the construction sector.