0% found this document useful (0 votes)
59 views80 pages

The Potential Application of Blockchain Technology in Enhancing Management of Transactions & Payment Automation in Construction

This dissertation examines how blockchain technology can improve transaction management and payment automation in the construction industry. It discusses how blockchain can increase transparency, security, and efficiency in contract management, while addressing issues like payment delays and trust between parties. The research also identifies challenges to adoption, such as high costs and lack of standards, and offers strategies for overcoming these barriers.

Uploaded by

Shaariq Joosub
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
59 views80 pages

The Potential Application of Blockchain Technology in Enhancing Management of Transactions & Payment Automation in Construction

This dissertation examines how blockchain technology can improve transaction management and payment automation in the construction industry. It discusses how blockchain can increase transparency, security, and efficiency in contract management, while addressing issues like payment delays and trust between parties. The research also identifies challenges to adoption, such as high costs and lack of standards, and offers strategies for overcoming these barriers.

Uploaded by

Shaariq Joosub
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 80

The Potential Application of Blockchain Technology in

Enhancing Management of Transactions & Payment


Automation in Construction

(D31RZ) RESEARCH DISSERTATION

BY

SHAARIQ JOOSUB

H00286141

A Dissertation Submitted in Partial Fulfilment of The Requirements for The Degree

of

Master of Science in Construction Project Management

Presented To

Heriot-Watt University

The School of Energy, Geoscience, Infrastructure & Society

Dissertation Supervisor: Sr Ruzanna B, Abd Rahman

AUGUST | 2022
DECLARATION

I, Shaariq Joosub, confirm that this work submitted for assessment is my own and is expressed
in my own words. Any uses made within it of the works of other authors in any form (e.g.
ideas, equations, figures, text, tables, programmes) are properly acknowledged at the point of
their use. A full list of the references employed has been included.

Signed : Shaariq Joosub

Date : 15TH August 2022

2
TABLE OF CONTENTS

CHAPTER 1 | INTRODUCTION ............................................................................................ 7


1.1 Background ................................................................................................................... 7
1.2 Problem Statement ....................................................................................................... 8
1.3 Research Questions ...................................................................................................... 9
1.4 Research Objectives ................................................................................................... 10
1.5 Research Aim .............................................................................................................. 10
1.6 Research Scope ........................................................................................................... 10
1.7 Significance of Research ............................................................................................ 10
1.8 Research Outline ........................................................................................................ 11
CHAPTER 2 | LITERATURE REVIEW ............................................................................... 13
2.1 Introduction ................................................................................................................ 13
2.2 Introduction to Blockchain Technology ................................................................... 14
2.3 Blockchain in Construction Contract Management ............................................... 16
2.3.1 Benefits of Blockchain Technology in Construction Contract Management & Payment Automation
.......................................................................................................................................................................16
2.3.2 Blockchain Application in Contract Execution ..................................................................................17

2.4 Challenges in the implementation of Blockchain Technology ............................... 20


2.4.1 Regulation ..........................................................................................................................................20
2.4.2 Interoperability ...................................................................................................................................21
2.4.3 High Costs ..........................................................................................................................................21

2.5 Measures of Improving Blockchain Technology Adoption .................................... 22


2.6 Chapter Summary ..................................................................................................... 23
CHAPTER 3 | RESEARCH METHODOLOGY.................................................................... 26
3.1 Introduction ................................................................................................................ 26
3.1.1 Research Process ................................................................................................................................26

3.2 Research Ethics .......................................................................................................... 27


3.3 Research Design.......................................................................................................... 27
3.3.1 Quantitative Research Approach ........................................................................................................27
3.3.2 Qualitative Research Approach ..........................................................................................................27
3.3.3 Justification of the Research...............................................................................................................28

3.4 Research Methodology ............................................................................................... 28


3.4.1 Research Instrument ...........................................................................................................................28
3.4.2 Research Population and Sampling ....................................................................................................30

3.5 Data Collection Method ............................................................................................. 32


3.6 Summary of the Chapter ........................................................................................... 33

1
CHAPTER 4 | RESEARCH FINDINGS & ANALYSIS ....................................................... 34
4.1 Introduction ................................................................................................................ 34
4.2 Approach to the Data Analysis ................................................................................ 34
4.3 Validity of Questionnaires ........................................................................................ 34
4.4 Findings’ Analysis ...................................................................................................... 35
4.4.1 Section A : Demographics..................................................................................................................35
4.4.2 Section B : Application of Blockchain in Construction Contract Management ...............................39
4.4.3 Section C : Impediments and Barriers to Blockchain Adoption in Construction Projects.................42
4.4.4 Section D : Improving the Uptake of Blockchain Technology ..........................................................46
4.4.5 Interview Questionnaires....................................................................................................................48

4.5 Summary of Findings ................................................................................................ 53


4.5.1 Critical Discoveries Regarding Objective 1 .......................................................................................53
4.5.2 Key Findings Concerning Objective 2 ...............................................................................................54
4.5.3 Key Findings Regarding Objective 3 .................................................................................................55
4.5.4 Vital Findings in Relation to Objective 4...........................................................................................56

CHAPTER 5 | RECOMMENDATIONS & CONCLUSION ................................................. 58


5.1 Scope & Limitations of the Study ............................................................................. 58
5.2 Potential and Opportunity of Blockchain in Construction Contract Management
and Payment Automation .................................................................................................. 58
5.3 Recommendations for Future Studies ...................................................................... 59
5.3 Conclusion ................................................................................................................... 60
REFERENCES ....................................................................................................................... 61

2
LIST OF TABLES

Table 1 : Research Process...................................................................................................... 26


Table 2 : Likert Scale of Impediments against BCT adoption. ............................................... 28
Table 3 : Likert Scale of Measures to improve BCT adoption. .............................................. 29
Table 4 : Frequency of Professionals in Construction. ........................................................... 30
Table 5 : Years of Experience in Construction. ...................................................................... 36
Table 6 : Types of Construction Projects. ............................................................................... 38
Table 7 : Payment Systems in Construction. .......................................................................... 40
Table 8 : Willingness to adopt Blockchain. ............................................................................ 43
Table 9 : Barriers against BCT adoption. ............................................................................... 43
Table 10 : Priority Measures of increasing BCT uptake. ........................................................ 45
Table 11 : Presentation of Likert Scale’s Findings on BCT implementation Barriers. .......... 47
Table 12 : Priority Strategies of increasing Blockchain uptake. ............................................. 48
Table 13 : Thematic Analysis Table. ...................................................................................... 49
Table 14 : Supporting literature on the Role of Blockchain in Construction Contract
Management. ............................................................................................................................ 53
Table 15 : Status of BCT application in Payment Automation............................................... 54
Table 16 : Supporting Literature of Barriers against BCT Uptake. ........................................ 55
Table 17 : Supporting Literature of Strategies for increasing BCT uptake. ........................... 56

LIST OF FIGURES

Figure 1 : An overview of Blockchain Technology (PWC, 2016). ........................................ 15


Figure 2 : Data Collection Method. Source: Author, 2022. .................................................... 32
Figure 3 : Professionals in the Construction Industry............................................................. 35
Figure 4 : Years of Experience in Construction. .................................................................... 37
Figure 5 : Types of Construction Projects. ............................................................................. 38
Figure 6 : Blockchain Awareness. .......................................................................................... 39
Figure 7 : Payment Systems in Construction Projects. ........................................................... 40
Figure 8 : Frequency of Delays and Non-Payment in Construction. ...................................... 41
Figure 9 : Willingness to adopt Smart Contracts. ................................................................... 41
Figure 10 : Frequency of Smart Contracts in Construction. ................................................... 42

3
ACKNOWLEDGEMENTS

First and foremost, I would like to extend a special thanks and show my appreciation to the
academic & support staff at Heriot-Watt University Malaysia, for not only having equipped &
prepared me with a wealth of industry knowledge & comprehensive experience but as well as
for providing me with the opportunities to demonstrate my capabilities, not only to others in
the world of Academia but utmost importantly, to myself, allowing me to reach yet another
momentous pinnacle & milestone of my life's journey.

The assistance provided by assistant professor Mrs Sr Ruzanna B, Abd Rahman, was greatly
appreciated and exorbitantly fruitful. I would like to offer my feelings of gratitude for her time,
guidance, dedication, and consistent positive tones of encouragement throughout. Mrs Sr
Ruzanna, Abd Rahman, offered intellectually valuable advice and input, not only shaping the
outlook of this dissertation but instead moulding the ideologies and notions of my perceptions
and illustrated how I could play a role in unlocking the technical facets & shape the future of
the built environment.

I would also like to acknowledge and extend a special thank you to my parents for having
provided me with this once-in-a-lifetime opportunity for which I am grateful and forever
indebted. Above all else, I would like to thank my brother, Zaakir Joosub, for his
encouragement of imaginative & free thinking, to become a student of life, consistently driving
me to philosophically look at the world as a whole, always teaching me the importance of the
integration and unification of new technologies, societies, construction practices and the natural
world, always motivating me to unblur the ideological lines of division and to take positive
strides of action in creating a better & brighter future of the world.

I also wish to show my appreciation to my diverse set of friends, who had emboldened and
inspired me by sharing their unique cultural, ethnic, field of expertise and industry insights,
stories, opinions, and seasoned wisdom with me and had also provided me with heartening
support throughout the year and this journey.

Finally, I would like to express a deep sentiment of appreciation to all the respondents, for their
time, constructive feedback, critiques, and overall valued input for the research subject matter.
Without them, this dissertation would certainly not be possible.

4
ABSTRACT

Information exchange is critical for construction projects due to their collaborative nature.
Blockchain technology creates a shared, secure and authorized logging across digital,
transactions. Bitcoin and cryptocurrencies function on the groundwork of this technology. It is
difficult to compromise (alter, hack, or destroy) information occurring within Blockchain
technology. This innovation is a digital transaction ledger that duplicates and distributes
transactional data across every computer network on the Blockchain. There is a projection that
the technology will revolutionize several areas of computing, more so concerning centralized
operations and privacy. Digitization is increasingly occurring in construction the construction
industry to enhance delivery and several critical areas of project management. A dynamic
collaboration between several companies constitutes the overall framework of construction
projects. Construction companies adopt communication technology to enhance information
exchange across several companies, groups, and teams working on the same project.
Blockchain technology can address several challenges within construction information
management.

Some of the key issues that compromise information management in the construction industry
include confidentiality, channel oversight, ledger metrics, multiparty aggression, change
tracing, inter-company record keeping, data ownership and provenance tracking. All the issues
mentioned earlier commingle with trust relations among actors in the industry, such as
contractors, subcontractors, suppliers, and clients. Mutual trust can enhances the
processes in construction project management. However, there is slow adoption of the
technology in the construction industry because of an association with increased fragmentation,
high costs for Small and Medium-sized Enterprise (SME) owners, and an absence of standard
adoption procedures among several other factors. Generally, the cryptocurrency industry uses
at higher rates than other industries due to early adoption. The technology’s integration with
the construction industry enhances efficiencies in building projects but it also comes with some
limitations to its adoption.

5
GLOSSARY OF ABBREVIATIONS

BCT : Blockchain Technology

BaaS : Blockchain as a Service

BIM : Building Information Model

CAD : Computer-aided Design

IBM : International Business Machines

ICE : Institution of Civil Engineers

IP : Intellectual Property

P2P : Peer-to-peer

PLC : Project Life Cycle

POW : Proof of Work

PWC : Power Waterhouse Coopers

6
CHAPTER 1 | INTRODUCTION

1.1 Background

The construction industry is very complex due to its fragmented nature. Several construction
projects are associated with challenges like delayed payments, late delivery, and low
productivity throughout the lifecycle of a project (Hamledari & Fischer, 2021). Process
integration and enhancement through innovation can optimize the general performance of
building initiatives. The slow uptake of technology in construction makes the industry lag with
the weight of minimal efficiencies from vast opportunities and resources. The adoption of
technology in the construction process is both procedural and simultaneous. For instance,
adopting some technologies, like the blockchain, depends upon an existing information
database (Dakhli et al., 2019). Traditional methods of managing construction projects made
architects the epitome of all processes. Essentially, their expanded roles and significance made
them like walking databases - Architects had all the project information. The 20th century’s last
half saw a collapse of traditional drawing and calculation tools. The computer-aided design
(CAD) innovation altered the construction landscape with a shift from symbolic 2D and 3D
drawings on tracing papers to the introduction of separate layers within the CAD program. The
upshot was an optimized ability for engineers to mitigate design problems using the software’s
features, which have a characteristic complex graphical outlook and higher visual interactivity.
Another milestone innovation in construction focused on information management. Building
information modelling (BIM) is quintessential for blockchain technology (BCT) adoption in
the construction industry (Ye et al., 2020). Understanding how the technologies function and
their relevance can lay the groundwork for increased adoption.

BCT has several definitions that have a similar subtext. Its descriptions postulate it as a digital
transaction ledger with features that include decentralization, authentication, and security. It is
a chain of blocks that houses data using digital signatures throughout a decentralized network.
A decentralized information ledger suits a construction project because the procedures involve
peer-to-peer collaboration between companies and specialists (Franca et al., 2020). BCT has
data store algorithms that determine the authenticity of a block’s proof of work (POW). Despite
deconcentrating, data access is secure because of authentication. Blockchain data is inalterable
because it records the whole data history together with author information and timestamps. The
splintered predisposition of the construction industry necessitates strategies that can optimize

7
information management and make processes seamless. Poor data management can bring
project inconsistencies in areas of contractual information, thereby causing contract problems.
The financial sector pioneered blockchain adoption. Processes in a construction project occur
simultaneously, but information management should be procedural. Provenance tracking, data
ownership, confidentiality, change tracing, cross-company record maintenance, storage, and
data ownership are some of the key problems that affect information management in the sector
(ICE, 2018). These challenges affect trust between stakeholders (suppliers, contractors,
subcontractors, and clients). Mutual trust optimizes the management of information throughout
the project’s lifecycle. For this reason, BIM adoption is requisite for blockchain adoption. The
financial sector uses blockchain more than any other industry. Cook (2021) suggests the
blockchain’s utilization in the financial industry can serve as a blueprint for its adoption in the
construction industry, specifically for payment automation and contract management.

1.2 Problem Statement

Some of the key issues that compromise information management in the construction industry
include confidentiality, channel oversight, ledger metrics, multiparty aggression, change
tracing, inter-company record keeping, data ownership and provenance tracking. All the issues
mentioned earlier commingle with trust relations among actors in the industry, such as
contractors, subcontractors, suppliers, and clients (Golosova and Romanovs, 2018). However,
there is slow adoption of the technology in the construction industry because of an association
with increased fragmentation, high costs for Small and Medium-sized Enterprise (SME)
owners, and an absence of standard adoption procedures among several other factors (Fu &
Zhu., 2021). Companies contribute to construction projects but digital revolutions in
communication procedures in construction transfer role-focus from construction organizations
to individual consultants. BIM adoption in modern construction adopts a digital framework of
information exchange in blocks for the various stages of project management, thereby requiring
integration with blockchain technology to enhance the management of this information (Adae,
2021). Generally, the cryptocurrency industry uses at higher rates than other industries due to
early adoption. The technology’s integration with the construction industry enhances
efficiencies in building projects but it also comes with some limitations to its adoption
(Greenwood & Kassem, 2019).

The integration of Building Information Modelling (BIM) is a prerequisite for BCT adoption
because the latter functions on the groundwork of an existing database. The blockchain’s utility

8
in the construction industry includes digital property records maintenance, smart oracles, smart
contracts, multi-signature transactions, and timestamping transactions or acts (Ki et al., 2020).
Several factors influence blockchain management of building information; the size of data
requiring management, participants’ number, and the number of transactions from the
groundworks of the distinguishing factors between the BIM model’s blockchain and
traditional/conventional blockchain applications like Bitcoin (Ye et al., 2020). Hundreds of
transactions, each comprising several gigabytes, across dozens of users constitute blockchain
in building information whereas billions of transactions, each comprising about a kilobyte,
between users in their millions constitute blockchain in cryptocurrencies, such as Bitcoin and
Ethereum.

Blockchain technology underpins several cryptocurrencies, but its application in construction


is minimal because of its novelty. The technology can facilitate risk management and the
provision of financial and social services. Apart from cryptocurrencies, construction industries
and healthcare service providers can also embrace the technology to enhance processes and
transactions (Scott et al., 2021)). Effective information exchange is a primary success factor
for the entire project due to incessant process fragmentation. The blockchain has several
features that can protect the integrity of the information that peers exchange during several
stages of a project life cycle (PLC). Conventional decentralized information exchange systems
require authorized entities or actors to validate each transaction or information exchange. Trust
becomes a major concern because of availability and sustainability concerns. The
rationalization behind this exegesis is mapping a strategy for increased BCT uptake in the
construction industry. Ergo, this study emphasizes the opportunities that the technology avails
for building projects as well as lapses that require mitigation due to its new status. Hence, this
exploratory exposition of the technology emphasizes the opportunities that should justify
increased uptake of BCT and the areas of improvement for optimal performance.

1.3 Research Questions

1. What is blockchain in the construction industry?

2. How does blockchain transform contracts and payments?

3. What is the scope of blockchain application in the management of construction payment


automation and transactional data?

9
4. What are some of the impediments against blockchain integration in the contract
management frameworks of construction projects?

5. Which measures can enhance blockchain uptake in the construction industry?

1.4 Research Objectives

1. To comprehend blockchain management and its role in the construction industry.


2. To analyse BCT application in payment automation within construction contract
management.
3. Identify the challenges against BCT implementation in construction contracts
through case studies.
4. Propose a strategy for enhancing BCT uptake in construction projects.

1.5 Research Aim

This study aims to propose strategies for enhancing BCT adoption in contract management
during construction projects.

1.6 Research Scope

The study will focus on the South African Construction Industry (SACI). Several firms in
Durban, the country’s most populous city, provide case points for appraising blockchain’s
application in the industry. In addition, the expanse of this study covers quantity surveyors,
contractors, subcontractors, surveyors, clients, and managers working in private construction
companies.

1.7 Significance of Research

The study can provide a guideline for universities to readjust the curriculum to fit student needs
in line with current construction practices. It can also facilitate the generation of trust-
improving strategies among varying types of industry stakeholders throughout the construction
lifecycle. The fragmented nature of the construction industry necessitates innovation-based
contract management strategies (Wu et al., 2021). Blockchain consolidates the authenticity and
reliability of records throughout a project’s lifecycle. The integration of Building Information
Modelling (BIM) is a prerequisite for BCT adoption because the latter functions on the
groundwork of an existing database. Construction projects fit the hybrid blockchain type

10
because of control requirements for specific data and privacy of all information facets across
several stages of the construction project life cycle. The rationale for the hybrid blockchain
type in construction projects stems from their requirement of a database (Building Information
Modelling), shared access, control functionality, private transactions, and inter-company
consensus determination. The blockchain’s utility in the construction industry includes digital
property records maintenance, smart oracles, smart contracts, multi-signature transactions, and
timestamping transactions or acts (Ki et al., 2020).

1.8 Research Outline

Chapter 1 : Introduction

This section provides a background of innovation in the construction sector. The uptake of
technology relies upon procedure because some technologies function optimally when they are
integrated with other technologies. The section provides the aim, rationale, and objectives of
the study. The research questions act as a compass that facilitates the navigation of the study’s
aim.

Chapter 2 : Literature Review

This area appraises BCT application in the financial sector by analysing how the innovation
works in cryptocurrency transactions, specifically Bitcoin and Ethereum. Blockchain
technology can enhance the transparency and equitability of the present project management
and payment systems, thereby bringing effectiveness and accountability among project
stakeholders. This chapter investigates the current framework for BCT adoption in the
construction sector, together with challenges and opportunities.

Chapter 3 : Research Methodology

This chapter evaluates the methods in the study. Qualitative and quantitative methods will
guide the study. It provides a discussion of the methods, selection criteria, omission criteria,
rationale, application, and limitations that associate with the chosen methods. Qualitative
methods provide case studies whereas quantitative methods provide metrics for the research to
determine the extent of application.

11
Chapter 4 : Research Findings & Analysis

This chapter discusses the collection of primary data in this exegesis occurred under the
directorship of a questionnaire survey whose design targeted the study population. The
researching entity prepared several facets of questionnaires in a frame that suited the unity of
the hypothesis, problem statement, and the guiding research objectives and questions to achieve
the objective of the study.

Chapter 5 : Recommendations & Conclusion

This section of the paper discusses the propositions for enhancing BCT uptake, emanating from
the analysis of findings and literature review.

12
CHAPTER 2 | LITERATURE REVIEW

2.1 Introduction

The literature review’s premier section appraises the technology’s history wherein the study
sheds light on the concept and technical outlook of the technology as applied to the financial
sector. Thereupon, an extensive textual analysis of credible sources that are in tandem with the
scope of the study ensues, seeking to understand multifarious definitions of Blockchain
technology (BCT), targeting a formulation of a subtext and context that cut across several
definitions. The financial industry’s application of the technology shall provide a perfect rubric
upon which maxims of application that can suit the design of the construction industry may
thrive. Such an appraisal will lay the groundwork for the identification of specific applications
of BCT in the construction sector based on the discussed common subtext in definitions and
concepts. Derivation as a design of the chapter is manoeuvring techniques that employ a
general-to-specific model of information gathering. Accordingly, the section gradually
develops a vicissitude that facilitates a tactful exploration of the particular questions that guide
this area of analysis in the grand scheme of the larger picture, which the research aim
encapsulates.

Contract management using Blockchain technology is a key unit of appraisal within the
chapter. Successful inquiry into the history, specifically definitions, subtexts, and concepts, of
BCT enables a presentation of general and deep facts about the technology’s potential in the
execution of contracts within the construction industry on the premise of its success in the
financial sector. The immediate step entails an intensive analysis of specific issues affecting
BCT application in contract management in the industry of inquiry. Lifting the lid off the
bucket that enshrines impediments against its implementation scaffolds the study into the
proceeding sub-category of the section’s appraisal-how the current industry attempts to solve
the application problems. Finally, the chapter summary sub-category of an illustrious literature
review will provide an overview of the reverberating specific issues encircling BCT
implementation in the industry.

13
2.2 Introduction to Blockchain Technology

The financial sector pioneered the application of Blockchain technology during the nascence
of cryptocurrency, particularly bitcoin. Blockchain is a distributed, unalterable ledger for
registering transactions, monitoring assets, and establishing trust relations within a business
network (IBM, 2022). The assets can be intangible, such as branding, Intellectual Property (IP),
copyrights, and patents, or tangible, like machinery or land. A Blockchain network in business
transactions permits the tracking and exchange of relevant valuables securely and cost-
effectively. Builtin (2022) defines BCT as a Distributed Ledger Technology (DLT) that
bulwarks any digital asset’s history against breach, and it achieves this function via
cryptographic hashing and decentralization. Simply put, DLT is a form of a database that
houses protected data blocks that occur as a chronologically linked single-source data storage
system. The unalterable, often adopting the term “immutable” feature derives from the
technology’s framework of transacting digital assets; relevant parties share the data of asset,
instead of copying or transferring the information. BCT enables the function of real-time
distribution of the data of assets due to decentralization.

Thus, transparency arises as one of the major conveniences that technology brings to
transactions that occur in the context of business networks. Price Waterhouse Coopers-PWC
(2016) explained that the technology underpins the existence of cryptocurrency among several
other items of transaction. Bitcoin is markedly at the vanguard of assets based on blockchain’s
invention. This FinTech Company positions the description of the network in a way that is by
no means dissimilar to what the earlier described definitions infer. PWC (2016) positions the
technology as a decentralized ledger that carters for every exchange or transaction throughout
a peer-to-peer (P2P) network. Participants can use the innovation to authorize transactions,
indicating freedom from the requirement of a central clearing figurehead/authority. Probable
areas of BCT application include settling trades, voting, and fund transfers among several
others. Positioning this study from a business vantage point demands hypothesizing the
technology as a nascent business process-enhancement software (PWC, 2016). An entity
adopting the name Satoshi Nakamoto advanced the technology in 2008. Satoshi’s development
used the technology to function as bitcoin’s public transaction ledger, where coalescing nodes
authorized new blocks by following communication protocols.

Overall, blockchain’s definitions possess similar subtexts that instantiate the fundamental
elements of its concept. IBM (2022) identified immutable records, smart contracts, and

14
Distributed Ledger Technology (DLT) as the key Blockchain elements. Blockchain’s DLT
feature implies all network participants can access the shared ledger and its’ alter-proof
transaction records due to one-time registration of any exchange. Immutability of records is an
upshot of data existing in the form of a chain of interrelated blocks where a current block is a
development of the previous one, and a basis for the introduction of a new one in a co-echoing
way throughout the entire network, hence Blockchain (PWC 2016: Cooke, 2021). BCT
organizes the welter of multifarious but connected digital transactions using a protocol, or a
body of rules called smart contracts, which it stores and automatically executes. The technical
operational mode of Blockchain transactions is as follows in line with IBM (2022). First, the
technology records each occurring transaction as a data block. The transactions exhibit the
transfer of tangible and intangible assets. The data registers the information as per the
requirements and directions of the recorder, such as who, where, what, when, and how much.
Second, every block has points of connection to preceding and proceeding blocks. The blocks
verify the transaction sequence, time, and link inextricably to prevent a breach or addition of a
block between two existing ones. Third, BCT blocks transactions together in a hack-proof
chain. Blockchain is a derivative of the last technical model of the innovation’s functionality
in a digital ledger.

Figure 1 : An overview of Blockchain Technology (PWC, 2016).

15
2.3 Blockchain in Construction Contract Management

The elements of blockchain present opportunities that can optimize the management of
contracts in construction. The fragmented nature of the construction industry and projects has
historically compromised the quality and timely delivery of construction projects. BCT’s
elements can give digital databases of construction transactions several advantages that current
ones, such as Building Information Model (BIM) lack. A database, preferably the Building
Information Model (BIM) sets the tone for Blockchain Adoption in construction contract
management. A paucity of mitigating mechanisms, if any exist, imbue the management of
single activities over a BIM network with a central authority to guarantee the current data’s
non-repudiation. For this reason, trust between stakeholders seldom exists. Blockchain can
make the construction industry more transparent, effective, productive, and sustainable
(Institution of Civil Engineers-ICE, 2020). The construction industry remains among the
world’s high-impact sectors despite its fragmentation. Emerging technologies, blockchain, in
this case, presents several efficiencies that can enhance the industry’s operations. The
construction sector presently experiences a digital transformation revolution to enhance
efficiencies, business practice, and digital workflows. Blockchain can enhance construction
contracts and payments by veering existing payment and project management systems toward
a fair and transparent practice. BCT frees small and medium-sized enterprises from perpetual
cash flow risks by minimizing remediations, late payments, and disputes (Institution of Civil
Engineers, 2020). Resultantly, trust in the industry grows. BCT enables the creation of smart
contracts that automate administrative tasks and business processes in ways that satisfy the
agreed contractual terms between participants.

2.3.1 Benefits of Blockchain Technology in Construction Contract Management &


Payment Automation

BCT is at the apex of technologies that embody the digital transformation in developed
economies. Stakeholders in the construction industry can use it as a method of managing assets
and contracts, wherein asset security gets reinforcement (Martino et al., 2020). The complex
links in a growing construction sector frustrate data/information sharing because of high
process costs and time lapses (Institution of Civil Engineers, 2018). Traditional data sharing
methods have negative influences on trust relations due to limited data access, lack of efficient
provenance tracking strategies, and reliance on a central figurehead for transaction
authorization. The digital revolution in the industry instantiates itself in the modification and

16
transformative solutions that BCT brings to the communication methods between construction
project contractors. BIM ensures digital data exchange by providing a single database
enclaving all data, which operators share throughout the project lifecycle. The growing
application of BIM in construction projects sets the tone for collaboration and information
exchange between parties. However, BIM lacks the surety of transparency and reliability in
each transaction (Turk and Kline, 2017). Deficiencies in information exchange using BIM
include modification rights, model property, and error responsibility. Integration between BIM
and BCT can bring a dynamic context that can overcome BIM limitations (Martino et al., 2020).
Blockchain brings a precise and transparent data-sharing framework by decentralizing
information control.

Blockchain potential in the construction industry lies within its capabilities to remove the
inconveniences that have lately lowered the motivation for BIM model creation (Imvozone,
2018). The challenges discouraging construction contractors from creating BIM are
disintermediation, provenance tracking, as well as data ownership and recording. Martino et
al. (2020) stated some benefits that the construction industry can reap from BIM-BCT
integration. The first advantage is the creation of a single and reliable digital ledger that creates
a collaborative context that functions on the principle of transparent delineation of the duties
and responsibilities of participants. Therefore, blockchain dissipates the chances of disputes
and misunderstandings that may arise from performance and delivery. The second advantage
of blending BIM with blockchain is efficient provenance tracking whereby each participant in
the process can record data with specific details such as date, location, and material to allow
tracing. Consequentially, the security of data and intellectual property (IP) grows stronger due
to tracing and transparency. Third, BIM-BCT amalgamation automates transaction processes
that smart contracts embody. Cross-party relationships between the participants of smart
contracts entail handling asymmetrical information during several stages of a project life cycle
(Martino et al., 2020). The usefulness of BIM-BCT integration manifests in transparency,
security, and provenance of the assets’ data.

2.3.2 Blockchain Application in Contract Execution

The development of the BIM model premises itself on a shared digital register whose actors
update and modify in the course of contract implementation. Participants can store all the
procedural developments that form a vicissitude of a tamper-proof chronological organization
of the welter of relevant tasks, responsibilities, and traded assets throughout the lifecycle of a

17
construction project. The features of blockchain ensure the immutability of data and a
decentralized control system in every phase of the process. The Blockchain can support BIM
model development to support contract execution in all stages of a construction project
lifecycle based on a shared blockchain database. Martino et al. (2020) identified the design,
commissioning, construction, and asset management phases of a construction project lifecycle
in their study, arguing that BIM model development supports their execution and that
efficiency can improve upon the development of the model through Blockchain integration.

1. Design Phase

Regarding the design phase, BIM-based preparation methods allow participants to share and
exchange data through one digital platform. The coalition between BIM and BCT mitigates
gaps in digital information modelling and project data management, like administrative,
insurance, and financial information, which typically have their instantiation on sheets. The
prospective of linking automated payments to the model’s data through smart contracts ensures
a comprehensive application of service contracts within the confines of requests that
participants express. Notably, the typical BIM model ceases to exist as a central data-exchange
environment that operates on a cloud platform under third-party governance. A BIM-BCT
integrated platform is rather a peer-to-peer (P2P) data-sharing environment where every
participant can define and oversight information ownership without altering or adding
unauthorized information.

2. Commissioning/Bidding

The fragmented and complex predisposition of the construction industry lends tendering
procedures to several ambiguities. A shared ledger that enshrines all data in permanent,
accessible, and transparent ways dissipates all misunderstandings. The blockchain provides
protocols for storing data in an immutable way such that no contracting party can tamper with
any tendering document. BCT ensures that all participants can access the procedures and
criteria for assessing bids, thus removing probable operational nefariousness/ambiguity by
explicitly making justifications for tender awards and termination. Accordingly, tenderers
deposit bids on the distributed ledger in an unalterable way, and clients can access the bids at
the end of the reception deadline. The consequence is a transparent and equitable tendering
process that guarantees tender awards to bidders who satisfy the pre-established award criteria.

18
3. Construction

Clients and project managers can monitor the progress of the construction phase using the 4D
and 5D models of dimensions. The BIM model permits comprehension of the real-time state
of construction works, whereas the blockchain, through continuous data storage, facilitates
provenance tracking⸺ therefore, project managers can trace the origin of project delays,
budget spillovers, and delayed payments. Clients gain more control over the progress and data
exchange relating to the onsite construction, which now occurs faster and more transparently.
The blockchain for a construction activity can successfully control the construction supply
chain, making it possible to trace materials. In instances of delay, one may appraise each
processing stage that the blockchain database registered, after which an individual may link it
internally to BIM (Koouhizadeh and Sarkis, 2018). Moreover, a record of work status data and
a list of suppliers optimize smart contract execution. The synergies between blockchain and
the building information model show the work progress and contractual requirements. For this
reason, payment automation functions seamlessly because clients release payments once
contractors reach milestones or achieve deliverables that the work program determines.

4. Life Cycle Management

BIM digitizes information management practices, but the innovation commingles with several
life cycle management challenges. A blockchain-based BIM model enables the creation of the
as-built model of a structure with all information regarding every component of the building.
The life cycle of a built asset satisfies the principles of a circular economy under the
management of a BIM-BCT platform (Marzouk et al., 2018). Through blockchain, all
participants throughout a construction project collect the building information data and register
the information in the distributed registry, which can support future maintenance, retrofitting,
and dismissal of redundant services during a structure’s operational phase. While BIM creates
a detailed and multi-professional framework of collaboration for lifecycle management,
blockchain facilitates a decentralized and convenient data management and storage system.
Blockchain and BIM interactions secure all data in the P2P network. Blockchain-based BIM
secures building data in its original forms throughout the lifecycle of a building (Leng et al.,
2020).

Several implementation challenges impede BIM-BCT integration despite the listed


opportunities of blockchain application in construction contract management. The next section

19
analyses texts that contain case studies that highlight impediments against BCT
implementation in construction contracts and payment automation. There is limited blockchain
assimilation in construction projects despite the opportunities for process optimization.

2.4 Challenges in the implementation of Blockchain Technology

Blockchain integration with construction projects requires an existing information database


upon which the technology’s efficiencies can take root. The construction sector has a
notoriously lower technology uptake rate than other sectors, such as the financial sector. A
survey by the National Association of Contractor Frameworks (NASCF) indicated a neutral or
negative attitude toward BIM among the majority of contractors. Challenges that perpetually
plague the construction industry include, inadequate or insufficient data sharing, lack of trust
between parties, and lack of collaboration. BCT is an emerging technology that can circumvent
these issues by enabling a decentralized, immutable, and secure data-sharing platform. By
comparison, the financial sector has wider utilities in the financial sector through luxuriant
cryptocurrencies like Ethereum and Bitcoins, than the construction industry.

2.4.1 Regulation

A paucity of regulations underpins much distrust in the blockchain space. Policies that can
govern Blockchain adoption in economic and social contexts have serious limitations.
Markedly, the current regulatory guidelines show little recognition, if any, of the blockchain
technology. The European Union’s Circular Economy Action Plan is the single policy guide
that tangentially mentions blockchain (Molina et al., 2021) The document provides guidelines
for the application of innovative models premised on enhanced customer relations through
mass customization of technologies like Artificial Intelligence, big data, and blockchain (Law
and Taylor, n.d.). The policy guideline recognizes blockchain, but notably lacks a description
of specific adoption frameworks. Consequently, heavy regulatory uncertainty compromises
BCT uptake. Policy guidelines that govern technology uptake should outline specifics (Du et
al., 2021). On the contrary, policy formulation endeavours that can map blockchain uptake
grapple with the impediments that the blockchain’s novelty presents. For instance, the unstable
verbal terrain of the blockchain’s landscape complicates policy formulation. More specifically,
several texts interchangeably use ‘consensus ledger,’ ‘shared ledger’ and ‘distributed ledger’
(Yli-Huumo et al., 2017). The unstable terminology reflects the technology’s novelty and
ongoing research in several application areas, including the construction industry.

20
2.4.2 Interoperability

The technology lacks full maturity due to the presence of several ongoing studies regarding
further application areas in the construction industry. Many grey areas remain unidentified in
the current stage of blockchain’s maturity. Integration levels of blockchain-powered value
chains are higher than in traditional value chains due to the creation of peer-to-peer networks.
Interoperability between blockchain and value chains in construction processes, such as
contract management, necessitates the maintenance of consistent data states during exchanges
across several computer systems (Teisserenc & Sepasgozar, 2021). One of the greatest
challenges that several construction companies collaborating with within a P2P network are
designing a BIM blockchain that suffices the peculiar utilities and needs of variant contractor
organizations (Brown, 2021). Another interoperability issue occurs when organizations
overstress short-term gains over lasting benefits in the development of the BIM blockchain.
Construction projects have two varieties of cross-BIM-blockchain interoperability (Mont rat et
al., 2019: Pillai et al.., 2022). The first one covers arbitrary data sharing and the second one is
associated with the exchange of digital assets. Companies should examine the interoperability
frameworks to avoid the risk of sole existence on a blockchain network due to a lack of synergy
with other organizations.

2.4.3 High Costs

The pandemic’s disruptions in 2020 tightened organizational budget plans. Additional costs in
system establishment, implementation, and staff training (Olawumi et al., 2021). The skill gap
in BCT makes the marketplace very competitive. The Blockchain Council (2019) reported a
surge of blockchain engineers by over 500 per cent in 2019, whereas the base remunerations
for blockchain developers had little change. Small and medium-sized enterprises have low
budgets that cause cash flow strains. As such, these organizations remain sceptical about BCT
integration because of the latent costs. COVID 19 showed that organizational IT departments
could evolve faster than previously imagined. A deeper examination of financial barriers in
BCT integration reveals correlations with limited understanding and awareness of blockchain
(Brown, 2021). Accordingly, a widespread awareness of new technologies increases the ability
of businesses to make a business case for BCT adoption.

21
2.5 Measures of Improving Blockchain Technology Adoption

Brown (2021) argued that organizations face similar challenges during blockchain
implementation. Therefore, identifying the challenges, as the previous section highlights, is the
first strategy of surmounting the impediments in the journey of successful implementation. A
2019 survey conducted by APQC showed that 66 per cent of organizations admitted familiarity
with BCT technology. In 2020, the figure rose to 80 per cent. Surprisingly, on the other hand,
the majority of organizations remain in the early adoption stages. The following measures can
enhance BCT adoption:

1. Using Blockchain as a service (BaaS)

This strategy enables organizations to gain the advantages of the technology without making
significant investments in acquiring technical talents. The BaaS model can reduce the skill gap
in the context of other innovations, like robotic process automation (Brown, 2021). In a similar,
organizations in the construction industry can identify vendors who possess the skills to
implement blockchain solutions. Conversely, users only need to understand the basics of the
technology, and thus become free from the strain of mastering programming concepts to gain
insights surrounding the technology’s benefits. Similarly, users must comprehend the
procedures of executing smart contracts that use BCT to execute transactions and automate
payments. BaaS has the potential to bridge the skill gaps and financial barriers against
blockchain adoption in the construction industry.

2. Enhancing Stakeholder Collaboration using Innovation-based Tools

A dynamic collaboration between several companies constitutes the overall framework of


construction projects. Construction companies adopt communication technology to enhance
information exchange across several companies, groups, and teams working on the same
project. Blockchain technology can address several challenges within construction information
management because it can improve the implementation of the Building Information Modelling
by enhancing collaboration through a shift from peer-to-peer information sharing networks to
instantaneous information updates for every individual serving in a BIM project. Markedly,
Tradelens is an international logistics network that Maersk and IBM created to enable peers
and competitors to work collaboratively to develop solutions to problems that cut across several
organizations concerning BCT application. The development of Tradelens occurred based on
the IBM blockchain platform. Tradelens functions differently from anonymous public

22
blockchains in the sense that each member is a trust anchor whom the network recognizes based
on cryptographic identity (Brown, 2021). The platform utilizes a permissioned blockchain to
provide privacy, provenance, and immutability of shipping documents.

2.6 Chapter Summary

The topics discussed in this chapter display how blending the BIM model and BCT can provide
benefits and enhance efficiencies in the primary phases of construction contract execution.
Blending several technologies is not a strange phenomenon in the AEC sector. BIM becomes
more efficient when it blends with other nascent technologies like blockchain technology
(BCT). This technology enables a tamper-proof information exchange layer in addition to the
current internet infrastructure (Hari & Lakshmana, 2016). Data that exists within the
framework of BIM is susceptible to manipulation. Blockchain brings the element of trust and
Security because of openness to participants' verification and the provision of visual evidence
for value transactions via its trusted database system. BIM building projects' pre-construction,
construction, and post-construction stages can accommodate blockchain to enhance
efficiencies. In the pre-construction stage, BIM permits the storage of an immutable record of
modifications that experts introduce and implement in the BIM model. BCT provides
permanent storage for the records with a digital signature and tamperproof assurance. Internal
and external stakeholders can share these records on BIM platforms. Only experts blend them
with BCT. The existence of permanent records provides justifications for legal arguments that
may arise over information exchange and manipulation because it facilitates errors' tracing,
reduces modifications, and enhances liability control. Stakeholders can capitalize on BCT's
provenance tracking capabilities to establish intellectual property (IP) ownership in the
elements in the shared models.

BIM is capable of integrating information originating from Blockchain shared ledger or


transferring data to BCT for updates and later utilization in smart contract execution, payment
automation and determination of novel supply orders (Carson et al., 2018). Due to
fragmentation and complexity, conflicts in construction contract execution stem from
ambiguities or lapses in task execution. Blockchain has the potential to develop the BIM model
to mitigate the aforementioned issues (Martino et al., 2022). Therefore, a BIM-BCT integration
streamlines and enhances contract management by generating immutable, traceable, and
transparent transactions throughout the construction project life cycle (PLC).

23
Blockchain technology enhances the records' authenticity and reliability in the construction
stage of a building project. The records include performed tasks, utilized materials, and any
other relevant information that can fit into the model. The current BIM system cannot reliably
verify the authorization of specific information, which creates gaps between an event's
occurrence and reporting. The blockchain identifies changes and incorporates their physical
implementation (Perera et al., 2017: Yaga et al., 2019). As a result, disputes over work
completion reduce. In this sense, the BCT reduces the risk of overlooking requisite information
and making errors. The BIM model records the final stages to form a threshold for further
upgrades and modifications upon completing a project. The record forms a reliable information
source for maintenance procedures. Blockchain technology enhances the Security of stored
sensitive information and a maintenance log for the facility's BIM model. Resultantly,
information auditing becomes seamless while the records in the custody of the facility manager
gain enhanced credibility and authenticity.

However, several impediments cause limited BCT adoption in the construction industry despite
a growing awareness of the benefits it can bring to contract management and payment
automation. Brown (2021) postulated that varying organizations experience similar challenges
in BCT implementation and that identifying the challenges is the first step in mitigating the
problem. Martino et al. (2022) established the challenges against blockchain integration in the
construction industry go beyond the technology’s technical nature. Minimal collaboration
between peers and competitors in developing organizational BCT, legal barriers, financial
barriers and skill gaps are the challenges that cut across all organizations seeking BCT
application in contract management.

A lack of standard regulation brings ambiguities to go that beyond compliance concerns and
extend to benefits case construction companies experience difficulty to rationalize introduction
efforts. The nebulous nature of regulations is aggravated by the organizational culture of SMEs.
Most SMEs lack structured and standardized data specifications for Blockchain-BIM projects.
A lack of uniformity and replicable frameworks of data capture raises questions over whether
standard templates for data requests can suffice the unique organizational needs of several
companies undertaking blockchain-BIM projects. Another issue associated with organizational
culture differences across several firms entwines service delivery and budgets. SMEs undertake
projects without payback timeframes, and most do not risk integrating BIM because of its high
deployment costs. COVID 19’s surge has significantly transformed several business practices

24
across different industries. The pandemic’s adverse effects on businesses proved that
preparedness against previous threats is a good practice because it lays the groundwork for
dealing with similar challenges or the problem if it reoccurs, albeit with variations. Global
crises are not new phenomena as they have been occurring throughout history. Pandemics
appear to occur between 10 and 50-year intervals due to the nascence of novel virus
subcategories from virus re-assortment. Construction firms can embrace proactive, rather than
reactive measures to respond expeditiously in the happenstance of a global economic crisis that
disrupts supply chains. It is challenging to estimate the prolonged impacts when in the middle
of a global crisis, but studies show historical global crises correlate with minimum returns on
assets. Resultantly, individuals veer toward saving capital rather than investing. Economic
development reduces when people choose saving capital against investing. Blockchain
technology provides a good framework of process management in a trusted, authenticated and
secure way, which prevents delay and wastage of materials and time.

25
CHAPTER 3 | RESEARCH METHODOLOGY

3.1 Introduction

This section appraises the research strategies for achieving paper outcomes as outlined in the
objectives. The study, largely, consisted of qualitative and quantitative research methods.
Accordingly, the survey approach will be used in the collection of quantitative data. A
preparation of close-ended questionnaires facilitates the survey because it provided a baseline
upon which relationships between variables underwent appraisal.

3.1.1 Research Process

This research procedure commingled with a series of undertakings surrounding the collection
of data. The feasibility of conclusions formed a strong rationale for a procedural data-gathering
process. Table 1 shows the steps followed in this exegesis. Steps 1 and 2 provided secondary
data whereas the remaining steps premised the primary data.

Table 1 : Research Process.

1. Research Proposal Development

2. Literature review

3. Development of Research Ethics

4. Formulation of Research Design

5. Questionnaire Development

6. Data Collection

7. Analysis and Discussion

8. Conclusion

26
3.2 Research Ethics

Data collectors will gather data from a group. Most ethical considerations of the paper derive
from data collection. The impossibility of getting data from each member of a construction
project team underpins the sampling technique, wherein informed consent, anonymity, and
confidentiality played significant roles. In an endeavour to draw valid conclusions, the
probability sampling method has the best chance because the study intends to derive results
that instantiate the different groups of contractors in a construction project. The data records
are accurate and fit the ethical criterion of non-alteration or non-modification to suffice a
preconceived outcome. Within the probability sampling method, stratified sampling took
precedence because it enables the researcher to divide the study population into subgroups
depending on construction-related descriptions or job roles such as suppliers, contractors, and
clients.

3.3 Research Design

This study adopted the qualitative and quantitative research design. The research objectives
included subjective and objective requirements that impelled both designs to arrive at feasible
outcomes. The two approaches complement each other during data assessment.

3.3.1 Quantitative Research Approach

This exegesis used quantitative design to establish how variables are associated with each
other. This approach laid the groundwork for an objective assessment of the relationship
between the BCT and factors like roles, years of experience, attitudes as expressed in the Likert
scale, and awareness among several other factors (Habib, 2021). For instance, an appraisal of
the type of construction projects (Public or Private) against BCT adoption factors like cost
showed the relationship between the two variables.

3.3.2 Qualitative Research Approach

A qualitative research approach focuses on the subject. This study sought to identify the roles
of the respondents, experience, type of projects, and their awareness of Blockchain technology.
The first section of the interviews focused on demographics, where the qualitative research
approach played a monumental role in the identification of subjects based on the earlier
mentioned categories of subjects in the demographics.

27
3.3.3 Justification of the Research

The reliance on literature in the study provided secondary data for the study. Consequentially,
the findings from the quantitative approach acted as primary data against which the discoveries
from a qualitative analysis formed consolidating arguments. The respondents’ interaction with
the technology, expressed in figures, provide tangible case points upon which secondary data
from qualitative methods formed reinforcing or inconsistent findings.

3.4 Research Methodology

3.4.1 Research Instrument

A survey questionnaire was used in the collection of quantitative primary data. The Likert scale
enabled the appraisal of the opinions and attitudes of stakeholders in a construction project.
This psychometric scale gave insights into a deep comprehension of the perspectives and views
concerning blockchain technology. The major assumption in the utilization of the scale was the
existence of a linear intensity and strength of the experience with an item (blockchain in this
case), ranging from complete disagreement to utter agreement. As such, the study employed
several statements with a scale to measure the respondents’ agreeableness to their suppositions.
The following statements that refer to the barriers against blockchain integration into the
construction contract management and payments helped respondents to identify their level of
agreement. On a scale of 1-5, where one implied the strongest disagreement and five motioned
the strongest level of agreement as illustrated in table 2.

Table 2 : Likert Scale of Impediments against BCT adoption.

Statement Rating

1 2 3 4 5

1. Blockchain is associated with the high cost


of implementation.

28
2. Blockchain requires technical know-how
to allow for effective implementation.

3. My current organisation is satisfied with


the current methodologies in place, despite
their flaws.

4. The lack of proper government regulation


and no regulatory standards.

5. Limited understanding of its capability.

6. There are few successful case studies of


blockchain implementation to encourage
its adoption.

The second scale measured the level of agreement with the recommendations that would
improve the uptake of blockchain in the construction industry. Similarly, a scale of 1 to 5 was
used.

Table 3 : Likert Scale of Measures to improve BCT adoption.

Statement Rating

1 2 3 4 5

1. Improving the awareness of blockchain


among the industry practitioners.

2. Improving user experience and training.

29
3. Addressing security and privacy issues.

4. The government’s support of the


technology.

5. Making it compulsory among public


projects for accountability.

3.4.2 Research Population and Sampling

Data collection in this study emphasized construction industry players from construction
industry players. The administration of the questionnaires began with a focus on demographics,
for example, an identification of the respondents’ roles and their frequency in the construction
industry. In doing so, this exegesis identified the following roles.

Table 4 : Frequency of Professionals in Construction.

Frequency Percent Valid Cumulative


Percent Percent

Valid Architect 7 9.9 9.9 9.9

Associate 1 1.4 1.4 11.3

Consultant 1 1.4 1.4 12.7

Contractor 6 8.5 8.5 21.1

Customer Service 1 1.4 1.4 22.5


Representative

30
Director 1 1.4 1.4 23.9

Engineer 15 21.1 21.1 45.1

Global Support Executive 1 1.4 1.4 46.5

Interior architect 1 1.4 1.4 47.9

Interior Architect 1 1.4 1.4 49.3

Legal 1 1.4 1.4 50.7

Logistics Manager 1 1.4 1.4 52.1

Project Director 1 1.4 1.4 53.5

Project Manager 9 12.7 12.7 66.2

Protégé/Trainee QS 1 1.4 1.4 67.6

Quantity Surveyor 16 22.5 22.5 90.1

Site Design Coordination 1 1.4 1.4 91.5

Site Operative 6 8.5 8.5 100.0

Total 71 100.0 100.0

31
Thereafter, the study sought to identify the frequency of the respondents’ years of experience
as the chart below indicates, as well as the types of projects they undertook, notwithstanding
blockchain awareness.

The second part of the questionnaires covered the application of Blockchain in construction
project management, with a specific focus on payment automation, smart contracts, and the
willingness to adopt it. it

In this research, the random sampling technique is premised has premised the selection of the
research population and sampling to avoid subconscious bias from the study group. This
technique permitted similar and random opportunities for selection of the study population to
create a balanced subset that represented the entire target population as a unity, rather than
fragments.

3.5 Data Collection Method

The research relied upon secondary and primary data. The primary data collected was
categorised broadly into quantitative and qualitative data. The following figure summarises
the process.

Figure 2 : Data Collection Method. Source: Author, 2022.

32
Generally, this data collection method will inform discussions in the fourth chapter of this
research. The findings derive from primary data collection (PDC), wherein survey
questionnaires and interviews regarding the current BCT status in construction. Secondary data
collection, from the review of literature, adds weight to the raw findings of PDC through a
synthesis that lays the groundwork for key discoveries.

3.6 Summary of the Chapter

The data collected was analysed through SPSS software. Various statistical measures were
used in the analysis of data, such as descriptive and inferential statistics. This chapter appraises
the strategies that guide the exploration of previously enlisted research objectives. For the most
part, this study occurs against a backdrop of quantitative research, wherein several facets of its
general outlook provide a yardstick that predetermines multiplex approaches. As it shall
become evident, the study’s predisposition and entailing questions lay the groundwork for
ethical considerations because of the multiplicity and tapestry of subjects as well as the
significance of the research to the construction practice. A combination of the qualitative and
quantitative research methods gave validity to the study through an oversight framework of
data assessment in the delineation between primary and secondary data.

33
CHAPTER 4 | RESEARCH FINDINGS & ANALYSIS

4.1 Introduction

The collection of primary data in this exegesis occurred under the directorship of a
questionnaire survey whose design targeted the study population. The researching entity
prepared several facets of questionnaires in a frame that suited the unity of the hypothesis,
problem statement, and the guiding research objectives and questions to achieve the objective
of the study. Six sets of questionnaires encapsulated all the requisite data for the study. This
section of the research consolidates the methodology section by instantiating evidence and facts
that augment the validity of collected data. In doing so, an exercise of prudence demanded the
chapter’s dissection into sub-categories to avoid the risk of clashing several elements in
discourse.

4.2 Approach to the Data Analysis

The data analysis strategy in this study impels the utilization of bar graphs, tables, and pie
charts. These tools provided a direct data analysis method as per the requirements of the nature
of the findings; they act as visual aids that validate observations and appraisals that expose the
undertones of the study population’s responses to the questionnaires. For a similar reason, a
frequency analysis for the examination of descriptive analysis occurred to determine the
repetitiveness of several phenomena as identified by the participant's responses. The Likert
scale provided a tool against which measurements of the respondents’ attitudes and level of
agreeableness or apathy toward statements of facts happened. The concluding approach of data
analysis adopted a comparison between findings from the gathered data and the results of
previous literature that encircles the topic of discourse.

4.3 Validity of Questionnaires

The formulation of the questionnaires occurred on the premise of construct validity to measure
the theoretical construct. This validity encompassed several types of validity. Generally,
questionnaire surveys are tools of metrics. They impress themselves as measurement
instruments within a quantitative approach to analysis. Validity identifies the extent to which
a survey or an instrument measures the item that its purpose of creation set forth. The six sets
of questionnaires for this study, by qualitative analysis, satisfied face validity. The respondents

34
acknowledged the relevance of the questions to their practice. The formulation of the
questionnaires given the research objectives and guiding questions cover all aspects of the areas
of investigation and thus suffice content validity. However, the weakness of face validity
creates a need for another form of consolidating validities. Criterion validity is evident in the
study considering that the questions have relevance to external criteria, specifically the
hypothesis (predictive criteria) and statement of the problem, which have the backing of the
literature review (concurrent criteria). Criterion validity correlates the questions with the topic
of study. Due to the categorical nature of the external criteria – by a mere distinction between
groups of respondents, known group validity instantiated itself on the questionnaires.

4.4 Findings’ Analysis

Part One : Quantitative Synthesis

4.4.1 Section A : Demographics

This section appraises the responses of the participants based on their years of experience and
professional affiliations. In addition, it establishes the type of projects that the respondents have
worked on to provide a basis from which blockchain adoption will be explored. Lastly, the
section sort to establish if the parties had any level of awareness of blockchain.

The respondents within the sample possess varying levels of professional roles and different
levels of experience in their professional practice. Seventy-one participants filled out a
questionnaire to describe their professional roles and years of experience in the field. The
majority of the participants were quantity surveyors, followed by engineers, project managers,
contractors and site operatives as figure 3 shows.

Figure 3 : Professionals in the Construction Industry.

35
Quantity surveyors took 22.5 percent of the study sample, engineers comprised 21.1 percent,
project managers constituted 12.7 percent, architects represented 9.9 percent, and contractors
and site operatives comprised 8.5 percent each. Other professionals in the industry like
customer service representatives, logistics managers, legal advisors, global support executives,
interior designers, quantity survey trainees and site design coordinators among several others
had low frequencies.

According to figure 4, 69.01 percent of the participants had less than five years of experience
in the industry. Going by table 3, 11.27 percent of the sample had experience ranging from five
to ten years, 8.5 percent represented those with ten to fifteen years, while 11.27 percent had
over fifteen years of experience.

Table 5 : Years of Experience in Construction.

Years of Experience

Frequency Percent Valid Cumulative


Percent Percent

Valid 10-15 years 6 8.5 8.5 8.5

5-10 years 8 11.3 11.3 19.7

Above 15 years 8 11.3 11.3 31.0

Below 5 years 49 69.0 69.0 100.0

Total 71 100.0 100.0

36
Figure 4 : Years of Experience in Construction.

Figure 5 shows that 50.7 percent of the respondents worked in private funded projects while
25.4 percent worked in publicly funded construction works. Only 23.9% acknowledged
working for both publicly and privately funded projects as table 6 shows. Private institutions
commission and pay for private construction works while the government oversees the entire
public building project. Many construction workers function within the private sector because
publicly funded projects are large. Public contracts have more security and reliability than
private projects, but most respondents function within private funded contracts. The private
sector accounts for three-quarters of construction output in the UK and the public sector only
accounts for a quarter.

37
Table 6 : Types of Construction Projects.

Frequency Percent Valid Percent Cumulative


Percent

Valid Both 17 23.9 23.9 23.9

Privately funded 36 50.7 50.7 74.6

Publicly funded 18 25.4 25.4 100.0

Total 71 100.0 100.0

Figure 5 : Types of Construction Projects.

59.15 percent of the respondents expressed familiarity with the blockchain while 40.75%
admitted to being ignoramuses concerning the technology as figure 6 shows. The financial
sector pioneered blockchain’s utilization for transaction management. Research about the

38
potential of BCT application in the construction sector is still underway. Furthermore, most
private-funded projects are yet to adopt BCT because of high implementation costs.

Figure 6 : Blockchain Awareness.

4.4.2 Section B : Application of Blockchain in Construction Contract Management

Blockchain technology is a digital transaction ledger with features that include


decentralization, authentication, and security. It is a chain of blocks that houses data using
digital signatures throughout a decentralized network (Hunhevinz & Hall, 2020). It finds useful
applications across various sectors, including finance, and construction, among others. Part B
of the survey questions appraised the applications of BCT in construction.

Figure 7 shows that 36.6 percent of the respondents admitted to the use of manual payment
systems in their organizations. According to table 5, 16.9 percent acknowledged no definite
structure of payment while 46.5 percent used automated payment.

39
Table 7 : Payment Systems in Construction.

Frequency Percent Valid Percent Cumulative


Percent

Valid Automated Systems 33 46.5 46.5 46.5

Manual 26 36.6 36.6 83.1

No defined 12 16.9 16.9 100.0


structure

Total 71 100.0 100.0

Figure 7 : Payment Systems in Construction Projects.

71.8% of the respondents acknowledged that they witnessed complete non-payment of parties
and delays during dealings with contractors. Only 28.2 percent experienced no delays or non-
payment. This is illustrated in figure 8.

40
Figure 8 : Frequency of Delays and Non-Payment in Construction.

50.7 percent of the respondents expressed their organization’s desire to adopt blockchain,
32.2% were not sure, while 14.1% showed unwillingness. This is illustrated in figure 9.

Figure 9 : Willingness to adopt Smart Contracts.

41
67.6% of the respondents showed their organizations do not use smart contracts, as illustrated
in figure 10. Significantly, that shows a gradual appreciation of the technology in the
construction industry.

Figure 10 : Frequency of Smart Contracts in Construction.

4.4.3 Section C : Impediments and Barriers to Blockchain Adoption in Construction


Projects

This section analyses the responses to the barriers to blockchain adoption in the construction
industry. To begin with, 78.87 percent of the respondents showed their organization’s
willingness to adopt BCT and 21.13 percent showed no desire to adopt the innovation as
illustrated in table 6. The section that showed unwillingness to adopt the technology decried
the influence of the industry’s fragmented nature on adoption. Insufficient knowledge
concerning BCT across the sector’s large community caused apathy. Other factors included
reliability, security, and long-term viability.

42
Table 8 : Willingness to adopt Blockchain.

Frequency Percent Valid Percent Cumulative


Percent

Valid No 15 21.1 21.1 21.1

Yes 56 78.9 78.9 100.0

Total 71 100.0 100.0

Accordingly, the Likert scale facilitated data collection from the participants to determine
adoption barriers. 46.5 percent and 16.9 percent of the respondents agree and strongly agree
that blockchain adoption correlates with high implementation costs. 47.9 percent of participants
strongly acknowledge the relevance of technical knowledge for effective BCT implementation.
Most respondents (40.8 percent) showed that their organizations were comfortable with their
current contract management methods. Most participants agreed insufficient or absent
regulation impedes adoption as shown in table 8.

Table 9 : Barriers against BCT adoption.

Strongly Disagree Neutral Agree Strongly


Disagree Agree

Blockchain is associated 2 7 17 33 12
with the high cost of
2.8% 9.9% 23.9% 46.5% 16.9%
implementation.

Blockchain requires 1 3 13 20 34
technical know-how to
1.4% 4.2% 18.3% 28.2% 47.9%
allow for effective
implementation.

43
My current organisation is 3 8 29 22 9
satisfied with the current
methodologies in place,
despite their flaws.

4.2% 11.3% 40.8% 31.0% 12.7%

The lack of proper 2 4 14 27 24


government regulation
2.8% 5.6% 19.7% 38.0% 33.8%
and no regulatory
standards.

Limited understanding of 2 5 18 18 28
its capability.
2.8% 7.0% 25.4% 25.4% 39.4%

There are few successful 3 3 23 20 22


case studies of blockchain
4.2% 4.2% 32.4% 28.2% 31.0%
implementation to
encourage its adoption.

The respondent's response to the barriers against BCT application in construction contract
management showed that knowledge of technical information concerning its application ranks
first with a mean of 4.17 as illustrated in table 9. Regulatory standards comprise the second
most important factor with a mean of 3.94. Satisfaction with current transaction frameworks
occurred at the bottom the of salient organization of the barriers. Generally, the mean of the

44
barriers ranges between 3.37 and 4.17. The standard deviation remains high across all
impediments (Over 0.9), implying an even distribution of the views of the participants.

Table 10 : Priority Measures of increasing BCT uptake.

Descriptive Statistics

N Mean Std. Variance


Deviation

Statistic Statistic Std. Statistic Statistic


Error

Blockchain requires 71 4.17 .115 .971 .942


technical know-how to
allow for effective
implementation.

The lack of proper 71 3.94 .120 1.013 1.025


government regulation
and no regulatory
standards.

Limited understanding of 71 3.92 .130 1.092 1.193


its capability.

There are few successful 71 3.77 .127 1.072 1.148


case studies of blockchain
implementation to
encourage its adoption.

45
Blockchain is associated 71 3.65 .115 .972 .946
with high cost of
implementation.

My current organisation is 71 3.37 .117 .989 .978


satisfied with the current
methodologies in place,
despite their flaws.

Valid N (listwise) 71

4.4.4 Section D : Improving the Uptake of Blockchain Technology

This section explains the opinions and views of the respondents regarding how to improve the
adoption of blockchain technology in construction projects. More specifically, this part
appraises reliability statistics and descriptive statistics, wherein the latter form’s part two of the
analysis of the findings. 40.8 percent and 38 percent of the sample population agreed and
strongly agreed that improving user experience and training enhances blockchain adoption.
456.5 percent strongly agreed that enhancing security and addressing privacy concerns could
guarantee improved uptake levels. 38.8 percent of participants expressed strong agreement with
the government’s support of the technology for increased adoption. 40.8 percent of the
respondents strongly agree with the value of making BCT mandatory for public construction
projects as a method of increasing blockchain uptake.

Reliability Statistics

Cronbach's Alpha Cronbach's Alpha Based on No. of Items


Standardized Items

.765 .776 4

46
Table 11 : Presentation of Likert Scale’s Findings on BCT implementation Barriers.

Strongly Disagree Neutral Agree Strongly


Disagree Agree

Improving user 3 2 10 29 27
experience and training.

4.2% 2.8% 14.1% 40.8% 38.0%

Addressing security and 3 2 11 22 33


privacy issues.

4.2% 2.8% 15.5% 31.0% 46.5%

The government’s 4 4 15 21 27
support of the
technology. 5.6% 5.6% 21.1% 29.6% 38.0%

Making it compulsory 6 5 16 15 29
among public projects for
accountability. 8.5% 7.0% 22.5% 21.1% 40.8%

Descriptive statistics show that Improving user experience and training ranks first among the
strategies for increasing BCT uptake, with a mean of 4.13 as table 9 illustrates. The second
priority strategy entails improving user experience and training, with a mean of 4.06. The
government’s support of the technology comes third and making BCT adoption compulsory
for public projects ranks last. The standard deviation remains high across all strategies for
increasing adoption (above 1), implying an even distribution of the views of the participants.

47
Table 12 : Priority Strategies of increasing Blockchain uptake.

Descriptive Statistics

N Mean Std. Varianc


Deviation e

Statistic Statistic Std. Statistic Statistic


Error

Addressing security 71 4.13 .125 1.055 1.112


and privacy issues.

Improving user 71 4.06 .120 1.013 1.025


experience and
training.

The government’s 71 3.89 .137 1.153 1.330


support of the
technology.

Making it compulsory 71 3.79 .153 1.286 1.655


among public projects
for accountability.

Valid N (listwise) 71

Part Two : Qualitative Synthesis of Findings

4.4.5 Interview Questionnaires

The questionnaires that the respondents answered had four sections. This part of the study
attempts to code the recurring themes, which mirror the objectives, across the several
interview facets. The following table presents the theme categorization of the interviews, sub-
themes and coding quotations from the interview respondents.

48
Table 13 : Thematic Analysis Table.

Theme Categorization Sub-Theme Categories Quotation Codes from the


Interviews
Demographics A. Profession I am a Professional Quantity
B. Years of experience Surveyor, registered in
C. Type of construction Tanzania with 4 years of
project industry experience
D. Blockchain (Respondent CK).
awareness
Medium-sized prime
contractor in the UK focused
on the refurbishment of
older infrastructure &
commercial buildings
(Respondent EM).
Limited personal experience
(Respondent GM).
Application of Blockchain A. Payment methods The current handling of
in payment automation B. Delays and non- payments is done through
within construction contract payments the banking system either
management. C. Smart contracts via sending/receiving EFT
or Cheque payments
(Respondent ZJ).
One of the top construction
issues that impacted the
relationship between the
contractor and the
subcontractor was a delay in
contract progress payments.
Because they want to secure
future projects from the
main contractor,
subcontractors typically do
nothing to establish a
positive relationship with
them. Due to this
circumstance, the
subcontractors are more
frequently experiencing
challenges with late
payments. We can short out
these issues easily by

49
contact with the client and
explaining the situation
(Respondent HA).
In the event of large-scale
projects, yes (Respondent
IS).
Challenges against BCT A. Cost Lack of technical knowhow
implementation in B. Technical knowledge about the technology,
construction contracts. C. Government regulations, and traditional
regulation business mind-set amongst
D. Security older societies (Respondent
E. Satisfaction with CK).
current payment
The main issue with
methods despite
blockchain is a general lack
flaws (rigidity)
of knowledge of the
F. Limited information
technology and a general
lack of comprehension of
how it operates, especially
in industries other than
finance. Investment and idea
exploration is being
hampered by this, but in
future, there are lots of
possibilities to adapt this
technology in the
construction industry
(Respondent HA).
Lack of experience with the
technology, resistance to
change, integration with
clients’ subcontractors and
suppliers who do not have
the system (Respondent
EM).
Strategies for enhancing A. Awareness training Yes, organisations in the
BCT uptake in construction B. Mandating BCT for industry need to be offered
projects. public projects training programmes to
C. Security initiate the adoption process
Enhancement (Respondent IS).
Industry people must be
aware of blockchain
technology adoption in the
construction industry. The

50
construction business
consistently adopts new
technologies more slowly
than other economic sectors.
Even though some
technologies, including
building information
modelling and robotics 3D
printing, have been adopted,
there have been some
difficulties. With the
features and capacities to
enhance the construction
supply chain, and promote
transparency, sustainability,
and other factors, blockchain
technology is also seen as a
game-changer for the
industry (Respondent HA).

The themes reveal several pertinent discoveries regarding BCT uptake in construction.

1. Demographics

Several stakeholders participate in construction projects. Generally, clients, contractors, and


managers play vital roles in a project, and thus need the input of professionals across each stage
of a construction project life cycle (Mbachu, 2015). Most QS professionals, whether for clients,
projects, contractor, or those that offer consultancy services often blend their specialty with at
least one other. Very few quantity surveyors can serve three groups of stakeholders within a
building PLC. The majority of QS professionals work as consultants

2. Application of Blockchain in Payment Automation and Contract Management

Blockchain technology reduces manual identity checks, a necessity for intermediaries,


administration, and waiting for spans. On the other hand, international transactions are
expensive due to several disadvantages: effort duplication, labour, cross-standard translation,
and data loss. For this reason, construction companies adopt the Blockchain for digital contract
management to minimize costs. Blockchain can revolutionize business information
management, especially around the information sharing area. It creates tamperproof transaction
records, which minimize corruption and fraud issues, and makes transactions auditable. In

51
addition, the Blockchain democratizes transactions by facilitating community agreement on
identity, checks, and validation by freeing transaction processes from centralized authorities.

3. Challenges against BCT Application in Construction

There is much regulatory uncertainty. The rationale behind an absence of laws includes
difficulty keeping up with all blockchain-related jargon and a subsequent unstable verbal
terrain. For example, people use several terms interchangeably to describe blockchain
technology. These terms include open or permissionless blockchains, consensus ledger, shared
ledger, and distributed ledger. In some instances, people may utilize them in one sentence, like
when an individual calls a shared distributed ledger. The changing language reflects the
technology's novelty and ongoing studies and research (Yli-Huumo et al., 2017). The upshot is
a requirement for further research and studies concerning anticipatory regulation.

Adopting the Blockchain comes with extra costs in system establishment, implementation, and
staff training. Small and Medium-sized Enterprises (SMEs) operate on lower budgets than large
firms do. The adoption rate is dangerously minimal in SMEs than in large firms because of
slow BIM adoption. As a result, Blockchain has higher design and implementation costs than
BIM. This justification explains why large and small firms in the construction industry take a
long to integrate the technology. Blockchain's implementation in the finance sector has attained
exemplary maturity, but this remains a distant goal for stakeholders in the construction
industry. Cost issues stem from procuring the requisite software, hardware, and staff
acquisition challenges.

Interoperability in Blockchain implies that all users see the same thing. Interoperability is one
of the most common impediments against Blockchain adoption in the construction industry.
The biggest challenge is that one company designs and implements a blockchain that suits its
specific needs and desired utilities. Another interoperability problem occurs when companies
overemphasize short-term incentives without counterbalancing their aims against future
developments. Interoperability is a primary concern for prospective adopters of building
blockchain solutions. Cross-blockchain interoperability comes in two varieties, each
containing specific considerations that vary from what companies may address with non-
distributed and traditional systems (Catalini and Gans, 2020: Montrat et al., 2019). The first
category is the digital asset exchange, and the second one is the arbitrary data exchange.
Companies must judiciously appraise the interoperability needs while adopting the blockchain

52
technology to avoid the risk of a lonely existence in a blockchain network due to an absence of
interoperability.

4. Strategies for Enhancing BCT Uptake

Most of its capabilities remain theoretical despite Blockchain's transformative potential


because of several disadvantages commingling with adoption. First, the proponents of smart
contracts overemphasize its cost-reduction benefits. The requisite infrastructure for smart
contract implementation is expensive to construct, deploy, and develop. Second, there are large
skill gaps within the workforce to implement a smart contract. Heavy competition for skilled
human resources aggravates the problem as digitization's roots spread. Blockchain knowledge,
for the most part, resides within specialists who write smart contracts. However, it should be
available for legal teams, staff, and top-level managers. Third, leaders should understand
blockchain technology holistically for appropriate exploitation. Fourth, the technology has
unresolved technical issues, particularly in interoperability. Finally, blockchain development
in multiple organizations exists in multiple standards, thus fragmenting processes into varying
networks.

4.5 Summary of Findings

This section begins with a summary of the findings against a backdrop of supporting literature
that can consolidate the discoveries, while at the same time focusing on the objectives. The
agenda is a discovery of lapses and gaps in the literature to get a basis for recommending
strategies for future studies and research.

4.5.1 Critical Discoveries Regarding Objective 1

The first objective of this exegesis was to determine the role of Blockchain in construction. A
detailed review of the literature revealed that blockchain facilitates contract management and
payment automation. Table 14 summarises findings regarding objective one.

Table 14 : Supporting literature on the Role of Blockchain in Construction Contract


Management.

Role Study

Payment Automation Luo et al., 2019

53
Contract Management Wang et al. 2017

36.6 percent of the respondents admitted to the use of manual payment systems in their
organizations. According to table 5, 16.9 percent acknowledged no definite structure of
payment while 46.5 percent used automated payment. Construction companies adopt the
blockchain for digital contract management to minimize costs. Blockchain can revolutionize
business information management, especially in the data sharing area. It creates tamperproof
transaction records, which minimize corruption and fraud issues, and makes transactions
auditable (Wang et al., 2017). In addition, the blockchain democratizes transactions by
facilitating community agreement on identity, checks, and validation by freeing transaction
processes from centralized authorities.

4.5.2 Key Findings Concerning Objective 2

71.8% of the respondents acknowledged that they witnessed complete non-payment of parties
and delays during dealings with contractors. Only 28.2 percent experienced no delays or non-
payment. The second objective was to analyse BCT application in payment automation within
construction contract management. Several studies have identified the current application of
BCT in payment automation as illustrated in Table 15.

Table 15 : Status of BCT application in Payment Automation.

Key Discovery Backing Literature

Stakeholders in construction are willing to Czachorowski et al. (2019)


adopt blockchain.

Medium-sized construction firms apply BCT Sigalov et al. (2021), Tezel et al. (2020)
for large construction projects.

Stakeholders focus on traditional payment Wang et al. (2020)


methods.

Most professionals have limited technical Kramer (2019)


knowledge about blockchain.

54
Increased BCT uptake in other sectors increases the willingness of stakeholders in the
construction industry to adopt the technology (Czachorowski et al., 2019). Contractors in the
construction industry have historically and traditionally lamented late and non-payments.
Digitization facilitates payment automation, but the system remains less effective because
payment applications rely on inefficient workflows and time-consuming document preparation,
review, approval, and execution. Block-chain-based intelligent contracts are decentralized
(Sigalov et al., 2021). The blockchain is a socio-technical technology that provides a
decentralized system for managing automated payments in a transparent and trustworthy way.
BCT ensures that only authenticated parties undertake a transaction. Regardless. SMEs only
apply blockchain for large construction projects (Tezel et al., 2020). Existing payment
applications, though digitized, cannot support reliable progress in payment automation because
of lagging BIM uptake, which sets the tone for BCT adoption. Therefore, most SMEs focus on
traditional payment methods due to limited understanding of the technology (Kramer, 2019:
Wang et al., 2020).

4.5.3 Key Findings Regarding Objective 3

The third objective was to identify the challenges against BCT implementation in construction
contracts through case studies. Table 16 summarises the findings and case study literature.

Table 16 : Supporting Literature of Barriers against BCT Uptake.

Barriers Case Study

Cost Olawumi et al. (2020)

Insufficient technical information Xu et al. (2021)

Legal regulations Maciel (2020), Sartipi (2021)

Limited information, hence, rigidity Mahmudnia et al. (2022)

78.87 percent of the respondents showed their organization’s willingness to adopt BCT and
21.13 percent showed no desire to adopt the innovation as illustrated in table 6. The novelty of
BCT compromises integration with construction projects due to several reasons, including
regulations and legal barriers, interoperability concerns, and high costs (Olawumi et al., 2020).

55
Blockchain integration with construction projects requires an existing information database
upon which the technology’s efficiencies can take root. The construction sector has a
notoriously lower technology uptake rate than other sectors, such as the financial sector. There
is limited blockchain understanding in construction projects despite the opportunities for
process optimization. (Xu et al., 2021). 46.5 percent and 16.9 percent of the respondents agree
and strongly agree that blockchain adoption correlates with high implementation costs. 47.9
percent of participants strongly acknowledge the relevance of technical knowledge for effective
BCT implementation. Most respondents (40.8 percent) showed that their organizations were
comfortable with their current contract management methods. Most participants agreed
insufficient or absent regulation impedes adoption as shown in table 8.

A survey by the National Association of Contractor Frameworks (NASCF) indicated a neutral


or negative attitude toward BIM among the majority of contractors. Challenges that perpetually
plague the construction industry include, inadequate or insufficient data sharing, lack of trust
between parties, and lack of collaboration. BCT is an emerging technology that can circumvent
these issues by enabling a decentralized, immutable, and secure data-sharing platform, but the
rigidity of the industry affects quick adoption (Mahmudnia et al., 2022). By comparison, the
financial sector has wider utilities in the financial sector through luxuriant cryptocurrencies
like Ethereum and Bitcoins, than the construction industry. Legal barriers and limited
legislation due to the novelty of the technology affect its uptake (Maciel, 2020: Sartipi, 2021).
An absence of standard procedures for adoption further complicates the matter.

4.5.4 Vital Findings in Relation to Objective 4

The fourth objective entailed proposing strategies for enhancing BCT uptake in construction
projects. Table 14 shows the discovered barriers and backing literature.

Table 17 : Supporting Literature of Strategies for increasing BCT uptake.

Strategy Supporting Literature

Awareness Training Sadeghi et al. (2022)

Legislation Nannayakara et al. (2021)

Research Elghaish et al. (2021)

56
40.8 percent and 38 percent of the sample population agreed and strongly agreed that improving
user experience and training enhances blockchain adoption. 456.5 percent strongly agreed that
enhancing security and addressing privacy concerns could guarantee improved uptake levels.
38.8 percent of participants expressed strong agreement with the government’s support of the
technology for increased adoption. 40.8 percent of the respondents strongly agree with the
value of making BCT mandatory for public construction projects as a method of increasing
blockchain uptake.

Small and Medium-sized construction Enterprises have a lower budget than large firms do. As
a result, their profit margins are lower due to cash flow pressures. Resultantly, such firms
choose traditional systems or less advanced technology. The limited range of laws and
regulations guiding BCT adoption arises from unmediated jargon, which makes the verbal
terrain for policy articulation challenging to traverse (Nannayakara et al., 2021). For instance,
people interchangeably utilize the terms 'consensus ledger', 'shared ledger', and 'distributed
ledger.' The inconsistent vocabulary is a mere reflection of the innovation's novelty and
ongoing research (Elghaish et al., 2021). That traded asset data should retain its uniqueness and
consistent state during transfer across varying information systems. Interoperability concerns
emerge when companies emphasize short-term adoption incentives over long-term ones.
Companies struggle to create a blockchain-based system specific to their desired utilities and
needs. Blockchain interoperability covers digital data transfer and arbitrary data exchange.

57
CHAPTER 5 | RECOMMENDATIONS & CONCLUSION

5.1 Scope & Limitations of the Study

This study had a decentralized focus. The questionnaires’ administration targeted participants
from developed and developing countries to better understand blockchain from a global point
of view. The limitations in the study included time constraints in the administration of
questionnaires that respondents responded to through google documents, whose administration
focused on East Africa and the UK in Europe. Hence, these two regions do not provide a
general view of the status of BCT uptake in all developing and developed countries.

5.2 Potential and Opportunity of Blockchain in Construction Contract Management


and Payment Automation

Blending BIM and Blockchain underpins effective contract management and payment
automation regarding blockchain management and its role in the construction industry. The
blockchain can facilitate several construction engineering contracts, including cost, efficiency,
speed, time, confidence, and management. The Blockchain technology is a primary enabler of
smart contracts. Second, concerning application in payment automation within construction
contract management, convenience is one vital contract element that increase blockchain’s
demand in contract management because of its inherent customizability during transaction
management (Li & Kassem, 2021). Construction projects involve several stakeholders and
achieving deliverables requires oversight strategies. Presently, cryptocurrency transactions are
the only ones that occur over blockchain. A block represents this transaction’s data. Block
distribution occurs in the P2P network that validates the transaction through a consensus-
derived code. Adding each block to a blockchain follows, acting as tamperproof transaction
records. On challenges against BCT implementation in construction contracts, awareness
training, regulatory intervention and technical training can improve its uptake.

58
5.3 Recommendations for Future Studies

The following recommendations can improve studies regarding BCT Uptake in the
construction sector.

1. Researchers should consider exploring how to create consistency in the technology on


the groundwork of consistent jargon for its explanations and the mechanisms of
simplifying some of its concepts for those lacking technical knowledge to ensure
widespread awareness. Overall, policies and laws regarding blockchain's adoption in
the industry should recognize the need for stakeholder participation, implying
researchers' evaluation of anticipatory developments in blockchain. Research should be
proactive rather than reactive.

2. Explore blockchain with BIM. Blockchain technology is unique because it facilitates


information distribution across several devices in different formats and copies.
Distributed information is difficult to alter or modify. It ensures that copied data in
different devices is consistent. Resultantly, three distinctive features that separate data
stores in blockchain technology from traditional databases emerge; cryptographic
recording and data protection and decentralized solutions to process concerns and
issues. These features coincide with the collaborative dynamics in building and
construction projects undertaken by several companies seeking to achieve one overall
objective by realizing several deliverables across the project life cycle (PLC).
Blockchain technology can improve the implementation of Building Information
Modelling by enhancing collaboration through a shift from peer-to-peer information-
sharing networks to instantaneous information updates for every individual serving in
a BIM project.

3. Investigate the training models in learning institutions that teach construction courses.
A generational shift that veers from vocational training, which most students perceive
as the last option. The cost of labour rises due to a shortage of skills because the experts
that institutions churn out have limited comprehension of Blockchain.

59
5.3 Conclusion

The AEC sector lags in process digitization. For this reason, it becomes difficult to keep up
with emerging technology when full adoption of the previous innovations has not materialized.
Adopting blockchain technology requires the foundation of an existing database for process
management, such as BIM, in building projects (Czmoch & Pekala, 2014). Several construction
companies are yet to achieve a full rollout of the model in their organizations. Blockchain
technology is unique because it facilitates information distribution across several devices in
different formats and copies. Distributed information is difficult to alter or modify. It ensures
that copied data in different devices is consistent. Resultantly, three distinctive features that
separate data stores in blockchain technology from traditional databases emerge; cryptographic
recording and data protection and decentralized solutions to process concerns and issues. These
features coincide with the collaborative dynamics in building and construction projects
undertaken by several companies seeking to achieve one overall objective by realizing several
deliverables across the project life cycle (PLC). Blockchain technology can improve the
implementation of Building Information Modelling by enhancing collaboration through a shift
from peer-to-peer information-sharing networks to instantaneous information updates for every
individual serving in a BIM project.

60
REFERENCES

Adae, K. (2021). BIM and the SME: An analysis of the SME transition in the UK.
Academia.edu.
https://www.academia.edu/8639916/BIM_and_the_SME_An_analysis_of_the_SME_
transition_in_the_UK

Adamska, B.A., Blahak, D. and Abanda, F.H., 2021. Blockchain in construction practice.
In Collaboration and integration in construction, engineering, management and
technology (pp. 339-343). Springer, Cham.
https://link.springer.com/chapter/10.1007/978-3-030-48465-1_57

Carson B, Romanelli G, Walsh P, Zhumaev A (2018) Blockchain beyond the hype: what is
the strategic business value? McKinsey Co. pp 1–19

Catalini, C. and Gans, J.S., 2020. Some simple economics of the


blockchain. Communications of the ACM, 63(7), pp.80-90.
https://dl.acm.org/doi/fullHtml/10.1145/3359552

Cooke, S. (2021). Cryptocurrency could help construction reinvent itself. Building.


https://www.building.co.uk/comment/cryptocurrency-could-help-construction-
reinvent-itself/5112957.article

Czachorowski, K., Solesvik, M., & Kondratenko, Y. (2019). The application of blockchain
technology in the maritime industry. In Green IT Engineering: Social, Business and
Industrial Applications (pp. 561-577). Springer, Cham.

Czmoch, I. and Pękala, A. (2014). Traditional Design versus BIM Based Design. Procedia
Engineering, [online] 91, pp.210–215. Available at:
https://www.sciencedirect.com/science/article/pii/S1877705814030665

Dakhli, Z., Lafhaj, Z., & Mossman, A. (2019). The potential of blockchain in building
construction. Buildings, 9(4), 77. https://doi.org/10.3390/buildings9040077

Doumbouya, L., Gao, G. and Guan, C. (2016). Adoption of the Building Information
Modeling (BIM) for construction project effectiveness: The review of BIM benefits.

61
American Journal of Civil Engineering and Architecture, 4(3), pp.74-79.
http://article.civilengineeringarchitecture.com/pdf/AJCEA-4-3-1.pdf

Du, X., Chen, B., Ma, M., & Zhang, Y. (2021). Research on the application of blockchain in
smart healthcare: constructing a hierarchical framework. Journal of Healthcare
Engineering, 2021.

Elghaish, F., Hosseini, M. R., Matarneh, S., Talebi, S., Wu, S., Martek, I., ... & Ghodrati, N.
(2021). Blockchain and the ‘Internet of Things for the construction industry: research
trends and opportunities. Automation in construction, 132, 103942.

França, A.S.L., Neto, J.A., Gonçalves, R.F. and Almeida, C.M.V.B., 2020. Proposing the use
of blockchain to improve the solid waste management in small municipalities. Journal
of Cleaner Production, 244, p.118529. https://doi.org/10.1016/j.jclepro.2019.118529

Fu, Y., & Zhu, J. (2021). Trusted data infrastructure for smart cities: a blockchain
perspective. Building Research & Information, 49(1), 21-37.

Golosova, J. and Romanovs, A., 2018, November. The advantages and disadvantages of
blockchain technology. In 2018 IEEE 6th workshop on advances in information,
electronic and electrical engineering (AIEEE) (pp. 1-6). IEEE.
https://ieeexplore.ieee.org/abstract/document/8592253

Habib, M. S. (2021). Qualitative and Quantitative Research Approaches.”.

Hamledari, H., & Fischer, M. (2021). Construction payment automation using blockchain-
enabled smart contracts and robotic reality capture technologies. Automation in
Construction, 132, 103926. https://doi.org/10.1016/j.autcon.2021.103926

Hari, A., & T.V. Lakshman. (2016). The Internet Blockchain: A Distributed, Tamper-
Resistant Transaction Framework for the Internet. ResearchGate; unknown.
https://www.researchgate.net/publication/309640613_The_Internet_Blockchain_A_D
istributed_Tamper-Resistant_Transaction_Framework_for_the_Internet

62
Hunhevicz, J.J. and Hall, D.M., 2020. Do you need a blockchain in construction? Use case
categories and decision frameworks for DLT design options. Advanced Engineering
Informatics, 45, p.101094. https://doi.org/10.1016/j.aei.2020.101094

Invozone.com. (2018). InvoZone. https://invozone.com/blog/blockchain-technology-why-we-


need-its-different-types/

Kiu, M. S., Chia, F. C., & Wong, P. F. (2020). Exploring the potentials of blockchain
application in the construction industry: a systematic review. International Journal of
Construction Management, 1-10. https://doi.org/10.1080/15623599.2020.1833436

Lamb, K. (2018). Blockchain and Smart Contracts: What the AEC sector needs to know
https://www.repository.cam.ac.uk/bitstream/handle/1810/278893/CDBB_REP_003_L
amb_Final.pdf.

Law, C. and Taylor, P. (n.d.). Regulatory Opportunities and Challenges for Blockchain
Adoption for Circular Economies 1 st Katrien Steenmans. [online] Available at:
https://discovery.ucl.ac.uk/id/eprint/10142658/1/Steenmans_Regulatory%20Opportun
ities%20and%20Challenges%20for%20Blockchain%20Adoption%20for%20Circular
%20Economies_AAM.pdf

Li, J., Greenwood, D., & Kassem, M. (2019). Blockchain in the built environment and
construction industry: A systematic review, conceptual models and practical use
cases. Automation in Construction, 102, 288–307.
https://doi.org/10.1016/j.autcon.2019.02.005

Li, J., & Kassem, M. (2021). Applications of distributed ledger technology (DLT) and
Blockchain-enabled smart contracts in construction. Automation in Construction, 132,
103955. https://doi.org/10.1016/j.autcon.2021.103955

Luo, H., Das, M., Wang, J., & Cheng, J. C. (2019). Construction payment automation through
a smart contract-based blockchain framework. In ISARC. Proceedings of the
International Symposium on Automation and Robotics in Construction (Vol. 36, pp.
1254-1260). IAARC Publications.

Maciel, A. (2020). Use of blockchain for enabling Construction 4.0. In Construction 4.0 (pp.
395-418). Routledge.

63
Mahmudnia, D., Arashpour, M., & Yang, R. (2022). Blockchain in construction management:
Applications, advantages and limitations. Automation in Construction, 140, 104379.

Martino, G., Giulia Pattini, Seghezzi, E., & Paleari, F. (2020). The Construction Contract
Execution Through the Integration of Blockchain Technology. ResearchGate;
unknown.
https://www.researchgate.net/publication/338280351_The_Construction_Contract_Exe
cution_Through_the_Integration_of_Blockchain_Technology

Marzouk M, Azab S, Metawie M (2018) BIM-based approach for optimizing life cycle costs
of sustainable buildings. J Clean Prod 188:217–226.
https://doi.org/10.1016/j.jclepro.2018.03.280

Molina, F., Betarte, G., & Luna, C. (2021, May). Design principles for constructing GDPR-
compliant blockchain solutions. In 2021 IEEE/ACM 4th International Workshop on
Emerging Trends in Software Engineering for Blockchain (WETSEB) (pp. 1-8). IEEE.

Monrat, A.A., Schelen, O. and Andersson, K. (2019). A Survey of Blockchain From the
Perspectives of Applications, Challenges, and Opportunities. IEEE, pp.117134–
117151. https://ieeexplore.ieee.org/abstract/document/8805074

Nanayakkara, S., Perera, S., Senaratne, S., Weerasuriya, G. T., & Bandara, H. M. N. D.
(2021, June). Blockchain and smart contracts: A solution for payment issues in
construction supply chains. In Informatics (Vol. 8, No. 2, p. 36). Multidisciplinary
Digital Publishing Institute.

Olawumi, T. O., Ojo, S., W.M, D., & Michael C.H. Yam. (2021, October). Factors
Influencing the Adoption of Blockchain Technology in the Construction Industry: A
System Dynamics... ResearchGate; unknown.
https://www.researchgate.net/publication/355181657_Factors_Influencing_the_Adopt
ion_of_Blockchain_Technology_in_the_Construction_Industry_A_System_Dynamic
s_Approach

Perera, S., Nanayakkara, S., Rodrigo, M. N. N., Senaratne, S., & Weinand, R. (2020).
Blockchain technology: Is it hype or real in the construction industry?. Journal of

64
Industrial Information Integration, 17, 100125.
https://doi.org/10.1016/j.jii.2020.100125

Pillai, B., Biswas, K., Hóu, Z., & Muthukkumarasamy, V. (2021). Burn-to-claim: An asset
transfer protocol for blockchain interoperability. Computer Networks, 200, 108495.

PricewaterhouseCoopers. (2016). Making sense of bitcoin and blockchain technology: PwC.


PwC. https://www.pwc.com/us/en/industries/financial-services/fintech/bitcoin-
blockchain-cryptocurrency.html

Sadeghi, M., Mahmoudi, A., Deng, X., & Luo, X. (2022). Prioritizing requirements for
implementing blockchain technology in the construction supply chain based on
circular economy: Fuzzy Ordinal Priority Approach. International Journal of
Environmental Science and Technology, 1-22.

Scott, D. J., Broyd, T., & Ma, L. (2021). Exploratory literature review of blockchain in the
construction industry. Automation in construction, 132, 103914.

Sigalov, K., Ye, X., König, M., Hagedorn, P., Blum, F., Severin, B., ... & Groß, D. (2021).
Automated payment and contract management in the construction industry by
integrating building information modelling and blockchain-based smart
contracts. Applied sciences, 11(16), 7653.

Teisserenc, B., & Sepasgozar, S. (2021). Adoption of blockchain technology through digital
twins in the construction industry 4.0: A pestels approach. Buildings, 11(12), 670.

Tezel, A., Papadonikolaki, E., Yitmen, I., & Hilletofth, P. (2020). Preparing construction
supply chains for blockchain technology: An investigation of its potential and future
directions. Frontiers of Engineering Management, 7(4), 547-563.

The Institution of Civil Engineers (ICE). (2018). Blockchain technology in the construction
industry. Designingbuildings.co.uk.
https://www.designingbuildings.co.uk/wiki/Blockchain_technology_in_the_constructi
on_industry

65
Turk Ž, Klinc R (2017) Potentials of blockchain technology for construction management.
Proc Eng 196:638–645. https://doi.org/10.1016/j.proeng.2017.08.052

Wang, J., Wu, P., Wang, X., & Shou, W. (2017). The outlook of blockchain technology for
construction engineering management. Frontiers of engineering management, 67-75.

Wu, H., Zhong, B., Li, H., Guo, J., & Wang, Y. (2021). On-site construction quality
inspection using blockchain and smart contracts. Journal of Management in
Engineering, 37(6), 04021065.

Ye, X., Sigalov, K., & König, M. (2020). Integrating BIM-and cost-included information
container with blockchain for construction-automated payment using billing model
and smart contracts. In ISARC. Proceedings of the International Symposium on
Automation and Robotics in Construction (Vol. 37, pp. 1388-1395). IAARC
Publications.

Yli-Huumo, J., Ko, D., Choi, S., Park, S. and Smolander, K., 2016. Where is current research
on blockchain technology?—a systematic review. PloS one, 11(10), p.e0163477.
https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0163477

Zheng, Z., Xie, S., Dai, H.N., Chen, X. and Wang, H., 2018. Blockchain challenges and
opportunities: A survey. International Journal of Web and Grid Services, 14(4),
pp.352-375.
https://www.inderscienceonline.com/doi/abs/10.1504/IJWGS.2018.095647

66
APPENDIX A : SURVEY | INTERVIEW QUESTIONNAIRE

HERIOT-WATT UNIVERSITY

The Potential Application of Blockchain Technology in Enhancing


Management of Transactions and Payment Automation in Construction

OBJECTIVES

1. To identify the applications of blockchain technology in construction contract


management and payment automation.
2. To identify the barriers to blockchain adoption in construction projects.
3. To identify the measures of enhancing blockchain adoption.

QUESTIONNAIRE

All the information provided is CONFIDENTIAL and is strictly for research purposes
under this study. Personal data collected will not be displayed nor published to the public.

Name: Shaariq Joosub

Student’s ID No : H00286141

Course : Master’s of Science (MSc) in Construction Project Management

Contact Number : (+60) 018 766 8699

E-mail : [email protected]

Dissertation Supervisor : Sr Ruzanna B, Abd Rahman

Dissertation Supervisor E-mail Address : [email protected]

1
APPENDIX A : SURVEY | INTERVIEW QUESTIONNAIRE

QUESTIONNAIRE INFORMATION

This questionnaire contains five sections :

Section A : Demographics

Section B : Application of Blockchain in Construction Contract Management and Payment

Automation

Section C : Barriers to Blockchain Adoption in Construction Projects

Section D : Measures of Enhancing Blockchain Adoption

Section A : Demographics

Kindly provide information about your professional affiliation and organisations by


completing the questions below. Tick against each question.

1. What is your current role in your organisation?

Contractor

Architect

Engineer

Project Manager

Quantity Surveyor

Site Operatives

Others, please specify………………………………………

2. How many years of experience do you have in the construction industry?

Below 5 years

5-10 years

10-15 years

Above 15 years

2
APPENDIX A : SURVEY | INTERVIEW QUESTIONNAIRE

3. What type of projects do you work generally work on /within?

Publicly funded

Privately funded

Both

4. Are you aware of blockchain technology?

Yes

No

Section B : Application of Blockchain in Construction Contract Management

Definition : Blockchain technology is a digital transaction ledger with decentralization,


authentication, and security features. It is a chain of blocks that houses data using digital
signatures throughout a decentralized network. It finds useful applications across various
sectors, including finance, and construction, among others.

Kindly respond to the following questions accordingly

1. What is the current approach to handling payments in your organisation?

Manual

Automated Systems

No defined structure

2. Have you had any instances of complete non-payment or delays in payment to


suppliers of contractors?

Yes

No

3
APPENDIX A : SURVEY | INTERVIEW QUESTIONNAIRE

3. Research indicates that Blockchain can enable smart contracts and payment
automation. Is this a feature your organisation would be willing to adopt and
leverage?
Yes
No
Maybe

4. Has your organisation attempted or currently using smart contracts for construction
contract management?
Yes
No

Section C : Impediments and Barriers to Blockchain Adoption in Construction Projects

1. Do you intend to make future use of Blockchain technology in your construction


projects?
Yes
No
If not, what are some underlying issues that you wish clarified or made clear?
……… ……………………………………………

The following statements refer to the barriers against blockchain integration into
construction contract management and payments. Identify your level of agreement with
the following statements, on a scale of 1-5, where 1 strongly disagrees and 5 strongly
agrees.

Statement Rating

1 2 3 4 5

1. Blockchain is associated with the


high cost of implementation.
2. Blockchain requires technical
know-how to allow for effective
implementation.

4
APPENDIX A : SURVEY | INTERVIEW QUESTIONNAIRE

3. My current organisation is satisfied


with the current methodologies in
place, despite their flaws.
4. The lack of proper government
regulation and no regulatory
standards.
5. Limited understanding of its
capability.
6. There are few successful case
studies of blockchain
implementation to encourage its
adoption.

Section D : Improving the Uptake of Blockchain Technology

1. What are some of the measures that can improve and enhance the uptake of
blockchain in the Construction Industry? Identify your level of agreement with the
following statements, on a scale of 1-5, where 1 strongly disagrees and 5 strongly
agrees.

Statement Rating

1 2 3 4 5

1. Improving the awareness of


blockchain among the industry
practitioners.
2. Improving user experience and
training
3. Addressing security and privacy
issues
4. The government’s support of the
technology.
5. Making it compulsory among
public projects for accountability

5
APPENDIX A : SURVEY | INTERVIEW QUESTIONNAIRE

THANK YOU FOR YOUR TIME & EFFORT IN COMPLETING THIS SURVEY
FORM

We would very much appreciate it if you could provide your contact details in the case, we
need to contact you for further information. Please be rest assured that your identity will be
kept confidential and will not be disclosed.

Name :

Company :

Contact Number :

E-mail :

Kindly E-mail the completed Questionnaire back to :

Shaariq Joosub

E-mail : [email protected] | Contact Number : (+60) 018 766 8699

6
APPENDIX A : SURVEY | INTERVIEW QUESTIONNAIRE

HERIOT-WATT UNIVERSITY

The Potential Application of Blockchain Technology in Enhancing


Management of Transactions and Payment Automation in Construction

OBJECTIVES

1. To identify the applications of blockchain technology in construction contract


management and payment automation.
2. To identify the barriers to blockchain adoption in construction projects.
3. To identify the measures of enhancing blockchain adoption.

INTERVIEW QUESTIONS

All the information provided is CONFIDENTIAL and is strictly for research purposes
under this study. Personal data collected will not be displayed nor published to the public.

Name : Shaariq Joosub

Student ID No : H00286141

Course : Master’s in construction project management

Contact Number : (+60) 018 766 8699

E-mail : [email protected]

Dissertation Supervisor : Sr Ruzanna B, Abd Rahman

Dissertation Supervisor E-mail Address : [email protected]

7
APPENDIX A : SURVEY | INTERVIEW QUESTIONNAIRE

INTERVIEW INFORMATION

This interview contains five sections :

Section A : Demographics

Section B : Application of Blockchain in construction contract management and payment

automation

Section C : Barriers to Blockchain Adoption in Construction Projects

Section D : Measures of Enhancing Blockchain Adoption

INTERVIEW QUESTIONS

Section A : Demographic Information

1. What is your professional background?

2. What is the nature of your organisation?

8
APPENDIX A : SURVEY | INTERVIEW QUESTIONNAIRE

3. Do you have any knowledge or exposure to blockchain technology?

Section B : Blockchain and Construction Contract Management

4. Describe the current nature of handling payments in your organisation.

5. Is it sufficient enough to avoid errors of complete non-payments or sometimes, delays


in payments?

9
APPENDIX A : SURVEY | INTERVIEW QUESTIONNAIRE

6. How has the issue of late payments or complete non-payment affected relationships
between parties?

7. Have you heard of blockchain-enabled smart contracts and their application in the
construction industry?

8. What are some of the advantages you think the industry can benefit from?

10
APPENDIX A : SURVEY | INTERVIEW QUESTIONNAIRE

Section C : Barriers to Blockchain Adoption in Construction Projects

9. Does your organisation intend to make use of blockchain and smart contract
capabilities?

10. Describe the current barriers you may currently have to the full appreciation of
blockchain technology?

Section D : Measures of Improving Blockchain Adoption

11. Do you feel the adoption rate can be improved? What are some of the
recommendations?

11
APPENDIX A : SURVEY | INTERVIEW QUESTIONNAIRE

THANK YOU FOR YOUR TIME & EFFORT IN COMPLETING THIS


INTERVIEW QUESTIONNAIRE

We would very much appreciate it if you could provide your contact details in the case, we
need to contact you for further information. Please be assured that your identity will be kept
confidential and not disclosed.

Name :

Company :

Contact Number :

E-mail :

Kindly E-mail the completed Interview back to :

Shaariq Joosub

E-mail : [email protected] | Contact Number : (+60) 018 766 8699

12

You might also like