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Automation in Construction
journal homepage: www.elsevier.com/locate/autcon
Review
A R T I C L E I N F O A B S T R A C T
Keywords: Blockchain technology (BCT) has been implemented in different industries, including healthcare, manufacturing
Artificial intelligence (AI) and construction. Integrating recent technologies such as the internet of things (IoT), building information
Blockchain technologies modeling (BIM), and artificial intelligence with BCT creates the potential for overcoming many limitations
Building information modeling
within the construction industry. Blockchain smart contracts, for example, can solve problems related to tradi
Construction and infrastructure
tional contract forms. In construction projects, smart contracts based on BCT can enhance payment transparency,
Contractual disputes
Project stakeholders protect transaction histories, and provide secure access to information. Since BCT platforms are decentralized,
Review article reducing unnecessary bureaucracy will improve open communications, and BCT application can prevent disputes
Smart contracts rooted in communication issues, inaccurate documentation, and payment problems. This study focuses on
reviewing BCT characteristics to evaluate impacts on mitigating disputes. Based on a systematic review of the
publications, a comprehensive classification of blockchain-enabled applications in managing construction dis
putes is presented. This review identifies gaps in research and opportunities for future studies in the construction
domain.
* Corresponding author.
E-mail addresses: mehrdad.arashpour@monash.edu (M. Arashpour), rebecca.yang@rmit.edu.au (R. Yang).
https://doi.org/10.1016/j.autcon.2022.104379
Received 29 September 2021; Received in revised form 13 May 2022; Accepted 21 May 2022
Available online 27 May 2022
0926-5805/© 2022 Elsevier B.V. All rights reserved.
D. Mahmudnia et al. Automation in Construction 140 (2022) 104379
address the issues of the construction industry? (iii) How do the block information privacy [13]. Researchers designed a framework to track
chain applications affect disputes management in construction projects? agriculture products by applying the idea of a double-chain storage
The current systematic review study contributes towards a specific structure [15].
understanding of BCT features that reduce claims. The approach of this Recently, different studies have investigated BCT to assess its po
work is a content analysis; therefore, the growing interest from the tential to create an efficient system in various industries. For instance, a
literature is highlighted, and key research streams are identified: (i) the blockchain-based energy management system reduces daily operation
application of blockchain in data management (ii) the role of blockchain costs and peak load [16]. Furthermore, integrating blockchain and IoT
in payment management,(iii) the impact of applying blockchain on the to implement an energy trading system protects users’ privacy [17] and
interaction of participants, and (iiii) the current research gaps and op enhances fairness in the market [18]. Moreover, in terms of energy
portunities for further studies. management, BCT guarantees the secure implementation of Demand
The structure of this article is as follows. The BCT paradigm is dis Side Management (DSM), aligning supply and demand. Since the
cussed in Section 2. The method to perform a systematic literature re financial operations of power distribution systems need to be optimized,
view is presented in Section 3, followed by a description of the BCT plays an essential role in managing energy and financial flows in
classification of the different dispute causes in Section 4. Section 5 re energy transacting between microgrids and the local distribution grid
views characteristics of BCT identified by previous studies. Section 6 [19].
focuses on how BCT can address disputes, and Section 7 presents chal Another sector that BCT can improve is the healthcare. Growing data
lenges. Finally, Section 8 draws conclusions and introduces opportu size is one of the most severe challenges of healthcare data systems and
nities for future research. needs to be managed without disturbing personal privacy. Healthcare
organizations take blockchain-based solutions to organize patient in
2. Blockchain paradigm formation while maintaining security and privacy [20].
BCT can be combined with other technologies, such as IoT, to benefit
BCT application has been extended since its first appearance in 2008 shared economy applications, laying a foundation for people to make
by Satoshi Nakamoto. There are numerous studies in the literature more money [21]. IoT may use machine learning algorithms, although it
exploring various BCT applications in industries, from financial services is not viable since these cannot provide privacy regarding massive data
to agricultural supply chains. For instance, researchers investigated stored at central cloud centers. On the other hand, by adopting a
blockchain-achieved economic benefits and challenges [8]. Ref. [9] decentralized system, BCT enhances the confidentiality of data IoT
explored BCT’s effectiveness to solve several concerns in agriculture as networks [22] and addresses the challenges in IoT based on its consensus
well as its opportunities and challenges. protocols and data structures [23].
Since BCT was performed in the real world by presenting the digital Szabo presented the smart contracts concept in 1997 [24], although
currency–Bitcoin, most scholars studied blockchain features or the role it did not receive enough attention until the development of blockchain
in the finance service sector [13]. Blockchain is based on distributed and Ethereum. Ethereum is a cryptocurrency that is the most well-
ledger technology (DLT) to record information of each transaction that known platform to execute a smart contract. Smart contracts relying
every network member has access to, but it can never be changed [10]. A on blockchain run by all users in a network facilitate the exchange of
blockchain is a digital finance technology that creates opportunities for information [25]. Therefore, using BCT within Ethereum, smart con
crescive entrepreneurship [11] and develops social, environmental, and tracts, and IoT to facilitate data sharing allow users to automate data
economic welfare based on its impact on circular and modified linear workflow and record a distributed peer-to-peer network [26].
economy frameworks [12]. Since a blockchain can increase effectiveness
and credibility in the supply chain, the cost of processes decreases [13]. 3. Research methodology
One of the most widely conducted studies of BCT is in agriculture,
half of which were performed by Asian researchers. Around 60% of all The approach adopted in this research is a “systematic review”
the studies are based on the food supply chain, and the rest is related to focusing on delivering a thorough summary of the body of knowledge
the combination of BCT and IoT [14]. Some problems of public service and answering a relevant research question. In a systematic review, the
platforms of agriculture, such as rent-seeking, can be solved by applying first step is conducting a thorough search of all sources of information
BCT in the agricultural supply chain system because the technology is for associated studies. After listing citation indexes searched in the
based on a double chain structure that improves security and enterprise methodology section, the next step would be applying determined
Collaboraon
Data management
Payment
2
D. Mahmudnia et al. Automation in Construction 140 (2022) 104379
criteria to analyze the titles’ eligibility. In the last step, which may or potential conflicts between participants whose views and benefits are
may not contain a meta-analysis, the collected data is synthesized [27]. different. Claims, which are inevitable in construction projects, turn into
The process suggested by Grant and Booth [28] has been adopted to disputes unless managed. Researchers have investigated and classified
conduct this systematic review of blockchain applications in claim the roots of such conflicts to manage them; thus, presented several
management. The steps of the methodology include: classifications of dispute causes [29,30]. However, in some cases,
studies offered irrelevant circumstances as the causes of conflicts that
1. Specifying reasons for conducting the review, organize it, and never escalated into disputes [31]. Therefore, the current paper in
develop a protocol for the review. vestigates conflicts that are rooted in only three fields (Fig. 3).
2. Identifying and select the research studies, data extraction, and
synthesize them. 4.1. Payment failures
3. presenting the review outcomes.
The employer makes a progress payment after completing the
amount of work during a period. A traditional payment system of con
struction projects has a tree structure. After receiving the progress
3.1. Search criteria
payment, the main contractor pays it to the subcontractors, and so on
The main question of this study is how a blockchain-based smart down the chain—the system’s traditional nature causes slow processing
in payments [32].
contract can mitigate construction disputes. To answer the primary
research question, the authors have carried out a systematic search Despite the timeliness of payment that improves the cash flow in
construction projects, payment delays can slow down the execution of
strategy during August 2021 without considering time-frame re
strictions, and in January 2022, the results were updated. Relevant ar construction projects and result in increased costs, reduced perfor
mance, and escalated disputes [33]. There are a couple of reasons
ticles were identified through electronic investigations. Two primary
databases of Scopus and Web of Science were surveyed to source rele behind a late payment: inefficient payment procedures because of a
heavy bureaucracy and the lack of trust among participants [34]. Since
vant articles. The terms “blockchain” and “construction” were initially
presenting task reports by contractors and making payments by em
explored in all research paper’s titles.
ployers cannot be performed simultaneously, there is an inherent ten
Moreover, the studies exploring BCT applications in the three do
sion and a need for trust in construction projects—the contactor must
mains (data, collaboration, and payment management) in other in
trust that the employer will pay, and the employer must trust that the
dustries were also considered. To be included, the referenced works had
contractor accurately reports his performance [35]. In this regard,
to focus on BCT implemented for any objective related to data, payment,
project bank accounts (PBAs) are methods to increase transparency and
and collaboration. Selected studies include peer-reviewed papers, dis
accelerate payments and have solved some poor payment practices.
sertations/theses, and conference proceedings. There was no restriction
However, PBAs cannot protect contractors against insolvency; setting
to impose on the country or region of publication and the design of
them up can be time-consuming lengthy, and cost money to run [32].
studies. The eligibility criteria of this research are presented in Table 1.
3
D. Mahmudnia et al. Automation in Construction 140 (2022) 104379
Ide ntification
databases
30 duplicates removed
34 studies
inaccurate bill of quantities, and poorly written contracts [43]. outcome is likely to be affected by positive and negative emotional
Moreover, unclear documentation can jeopardize any chance of climate [31]. Some dominant people do not notice equal rights and
settling a dispute out of court because its outcome cannot be predicted suppress the contribution of other participants. Therefore, some project
with certainty [44]. In an insecure centralized system, uncertainty re participants may never give their ideas [49].
sults from a lack of awareness of project status and the actions of other A complex process such as a construction project relies on extensive
stakeholders. In an uncertain environment, opportunistic contractors data exchange. In this level of complexity, information must be trans
can take advantage to exonerate themselves due to centralized con ferred on time and accurately among project participants to facilitate
trollers [45]. collaboration among the participants. The construction industry needs
According to the study of Ali et al. (2020), poor record-keeping to have a system of information exchange without compromising the
practices, unacceptable paperwork by the contractor, and difficulty in quality of processes [50]. Mitkus and Mitkus [31] indicated that many
retrieving information result from traditional management systems. The conflicts were derived from poor communication rather than delays in
problematic issues pointed to the extension of time that is a source of performance. An effective collaboration needs trust; however, the cur
disputes. A BIM-based claims management system is presented in the rent systems to improve communication and store a record of trans
study to manage claims caused by the extension of time [46]. However, actions suffer from a lack of trust because of non-transparent corporate
using BIM to overcome the problems gives some obstacles, including (i) ownership that leads not to be deployed database for a large swath of
a lack of transparency to determine the person who is responsible for activity. Other problems in a traditional contract system rooted in un
BIM, (ii) a lack of BIM data uniformity across design and engineering successful collaboration include slow down team workflow due to low
groups and also contractor companies, and (iii) ineffective way to get access to data, contract misinterpretation, late or incomplete informa
sustained information during the life cycle of a project [47]. Limited tion received, slow client response to a decision, and misunderstandings
transparency in identifying each stakeholder’s contributions and re [51].
sponsibilities and failing to find a way to avoid copyright infringement
in mega projects can generate serious disputes. Therefore, the prominent 5. Blockchain characteristics
weakness in a centralized system that needs to be overcome is a lack of
intellectual property protection for the construction designer of BIM The advancement of technologies has laid a foundation to share in
models [48]. formation; however, these technological advancements face limits in
meeting their demands, including lack of security, openness, trust, and
accessibility, to name a few. A blockchain system has overcome these
4.3. Collaboration issues challenges. For example, BCT protects data in IoT that is vulnerable to a
barrage of cyberattacks by storing it up permanently in blocks [52]. The
Progress meetings of construction projects held regularly are essen unique characteristics of BCT that have evolved businesses and their
tial mechanisms for exchanging data, discussing issues, and reaching systems are as follows:
agreements on the most effective action. These face-to-face meetings are
a forum for all stockholders to become aware of the project status.
However, face-to-face interaction does not always lead to expected re
sults. Despite the massive amount of time and energy consumed, the
4
D. Mahmudnia et al. Automation in Construction 140 (2022) 104379
Lacking of Limiting Blockchain advancements have enlivened smart contracts and pay
Damaging trust
transparency communication ment systems with the aim of improving cash flows. A blockchain-based
network can store every detailed transaction data on an encrypted single
digital gateway. Therefore, it provides users with a secure network and
Making hard trace
increases execution speed [59]; thus, the contractual conflicts and
transactions
payment issues can be overcome.
5
D. Mahmudnia et al. Automation in Construction 140 (2022) 104379
Strengthening security
Transparency
Documentatiom
Adding transparency
Fig. 4. The connection between blockchain features and the reduction of disputes.
of transactions, and all construction contract clauses are formalized and 6.2. Progress in collaborations
converted into a computer-executable code for a smart contract. Tasks
are automated for triggering interim payments after achieving Blockchain offers a way for users to securely collaborate, organize,
consensus. An authorized participant inputs a payment application, and and transact [70]. One of its advantages is in healthcare by paving the
a consensus system checks the application to prove its validity. Then, the way for personal health data collection, communication, and collabo
application is stored in a blockchain ledger without alteration. If there is ration between participants and insurance companies [71]. Therefore,
an attempt to change the recorded information, a trail will be left in the BCT improves user collaboration by improving data sharing and
system. When stakeholders approve the validation of the transaction, reducing hierarchy [72].
the endorsement is completed and sent to all of them. Therefore, system
security can be guaranteed without any need for a third party like bank • Having equal right to share ideas
systems [65].
BCT creates cooperation culture in which responsibilities are clear,
• Finding the responsible for a delay and risks/rewards are shared among participants. BCT specifies work
flow paths in any project, leading to trust and cooperation between
Audit technologies can manage disputes since they help managers parties [73]. Since the environment of construction projects is compet
detect claim fraud during the claim screening process [66]. Since a smart itive, BCT eliminates unhealthy competition among participants by
contract provides a system that can track the progress status and manage giving equal rights to enter data and equal status in consensus decision
financial transactions, the responsible persons for any delay can be making [74]. Generally, a blockchain is used to remove the weak and
defined. For example, in a cladding design process, a case study sug distrusting interaction in physical spaces, changing the interaction in
gested by Ref [67], after paying the advance payment to the vendor, organizations [75].
transporting the equipment to the predefined place is the vendor’s re
sponsibility. Since the transaction fee paid by the vendor and the data of • Reducing bureaucracy
equipment delivery are recorded to the blockchain, the reason for delays
in delivery or payment will be traced. Construction projects are collaborative processes that needs less
Another study uses a blockchain-based framework to overcome bureaucracy and more transparency. Accordingly, BCT provides project
financial issues, like willful non-payment and delays in payments, in a stakeholders with a decentralized ledger and up-to-date information,
centralized payment system, which is not cost-effective. Because of the transforming a hierarchical organization into a collaborative network.
cryptographic protocol of blockchain via DLT, transactions are immu This network leads to a transparent relationship and awareness of the
table, decentralized, and secured; therefore, parties do not need to trust site’s status. Clear communication is created for sub-contractors, main
each other because a cryptographic strategy keeps data secure among contractors, inspectors, and other stakeholders; thus, individuals can
them. This paper deploys a decentralized data model with selective enter and access information in an organized manner [76]. This
transparency for interim payments. This data model shares payment- distributed network is shared among all stakeholders and is not
related information differently based on the level of information sensi controlled by one company or person [77].
tivity. Sensitive information is shared privately, whereas non-sensitive
information is shared publicly [68]. In the history report of an immu
table system, the participant responsible for late payment can be iden 6.3. Improvement in documentation
tified by audit trails [64]; The responsible party can be the client
delaying the payment approval (without acceptable reason), or the In an insecure centralized system, uncertainty results from a lack of
awareness of project status and the actions of other stakeholders, and
contractor submiting progress invoices late. In this regard, a reliable
searchable encryption model by combining blockchain with searchable participants can take advantage to exonerate themselves [58–61]. An
opportunistic member can deliberately block other participants’ access
symmetric encryption is required [69]. This fair scheme has two pur
poses. First, it discovers the variability to detect false outcomes. Second, to the system during disputes. Moreover, unclear documentation can
jeopardize any chance of settling a dispute out of court because its
the blockchain payment mechanism guarantees the interests of all users.
outcome cannot be predicted with certainty [57]. Blockchain can solve
these issues by enhancing the security and transparency of document
management systems can solve the issues.
6
D. Mahmudnia et al. Automation in Construction 140 (2022) 104379
• Strengthening security Therefore, one needs to clearly understand the conflicts provoked within
parties due to using a blockchain. As BCT is still an emerging technology,
The main application of BCT is to manage organizations’ data in there is a lack of blockchain awareness and understanding. One of the
which there are large amounts of record representations. In such sys most interesting unresolved issues is the inadequacy of stakeholder
tems, high data accessibility is significantly crucial, but at the same time, experience and blockchain professional training [82]. This issue is
information needs to be prevented from being tampered with [78]. To critical because after deploying a smart contract on a blockchain
this end, Sheng et al. (2020) presented a framework based on a block network, making a change will be impossible; therefore, the smart
chain. They called it “the product organization process (POP)” that contract evaluation should be correctly performed, which is challenging
improves information quality in construction projects. This framework for the project’s development team.
lays a foundation for contractors, employers, consultants, and sub Moreover, since executing the functions of a smart contract deployed
contractors to collaborate online. They ally by signing a project contract on a blockchain is computationally expensive, the codes need to be well
and participating in the POP quality Chain. The asset owner creates a optimized; otherwise, the operation costs will increase [87]. The limited
quality information document in the framework and the process is knowledge is partially caused by the current shortage of relevant aca
commenced. The administration department and contractors ensure that demic courses at undergraduate and postgraduate levels [88]. Future
the framework is executed in all projects only after obtaining authori research can address other compelling reasons behind a lack of experts
zation. The adopted protocol receives quality information management with adequate skills at BCT.
by a consistent, secure, and decentralized framework. The framework
provides project participants with high data availability in a safe way. 7.2. Lack of regulatory clarity
Therefore, the challenge of scattered and vague documents leading to
disputes among participants is solved [45]. An important aspect of DLT is the ability to protect the user rights.
The system’s transparency will be reduced without an adequate regu
• Adding transparency latory model, and power users to delineate liability cannot be easily
identified. The current regulatory frameworks of DLT rely on traditional
Transparency is essential in the dispute resolution process since it centralized systems that lead to uncontrolled fragmentation in public
brings confidence and mutual understanding [79]. A lack of trans platforms; thus, some users gain benefits, and others are at a disad
parency in the centralized management of data creates a need for a vantage. As a result, disputes are not effectively settled. Researchers
distributed system to share an immutable and transparent record of all must understand BCT and its impact on the stakeholders to discover the
the transactions [80]. Previous research has indicated how lifecycle conflict potential while implementing the technology. However,
transparency could be achieved by blockchain smart contracts [7]. A without blockchain implementations in a wide area, researchers cannot
contractor triggers the workflow by recording a request in the network, find possible risks and conflicts resulting from using blockchain. One of
including information such as the document number, document verifi the challenges to large-scale adoption of the technology is regulatory
cation, the next party, and the due date. The request is concerning a uncertainty. At the moment, smart contracts have no uniform approach
defect in documents. The next actor (the architect) receives the request to determining an optimal structure in modern legal systems. Therefore,
and reviews documents to assess the claim and send an answer to the it is necessary to demonstrate how existing legislation will apply to BCT
contractor. Since all transactions are deployed on a blockchain, roles, [88].
actions, and workflow steps are traceable. Therefore, the workflow is
transparent, and these records can be useful in case of future conflicts 7.3. Lack of trust
[81].
BCT runs complex algorithms for each transaction, and it needs to
7. Challenges and future perspectives use various platforms to provide high privacy. Future research can
compare the functionalities of all leading blockchain platforms. The
Several issues and limitations were identified despite the promising business process of applying BCT needs to be clearly mapped out with all
results proved by the mentioned studies on a blockchain-based smart alternatives. Managers are not confident of implementing blockchain
contract for mitigating construction disputes. This section outlines the due to many variations and change orders in the construction industry
determined challenges, categorized into three areas: training, regula [67]. Besides, greater digitalization will be needed to adopt a blockchain
tory, and trust (Table 2). on a large scale since BCT cannot address all issues [89]. Other points to
address are problems with market integrity, and a lack of user protection
7.1. Lack of professional training leads to leaders and people not using blockchain-based systems. In
addition to a lack of trust in the network, people are worried about the
Like any novel technology, limitations and challenges emerge. Ar future costs of potential government regulations [90]. Because of
ranging a contract for multi-party interactions makes it complex [64]. mistrust and regulatory uncertainty, not only cannot a blockchain-based
contract mitigate disputes, but also it might create more challenges and
Table 2 delays. The future development of DLT as a critical public platform re
Arising challenges by applying blockchain smart contracts. quires social trust with users assured about fair management of disputes
Challenges Description [88].
7
D. Mahmudnia et al. Automation in Construction 140 (2022) 104379
conflicts are rooted in three primary contexts, this paper explores pay reduce construction disputes. Finally, regulating relevant laws on
ment, documentation, and interaction issues in construction as the blockchain to address any possible conflicts would result from the
sources of disputes. Evidence in the literature proves the influential role widespread implementation of the technology.
of BCT in addressing these problems.
BCT facilitates egalitarian self-organization by presenting unique
features, like decentralization, confidentiality, and transparency. The Declaration of Competing Interest
traceability option allows participants to track all immutable trans
actions. Based on the consensus mechanism of BCT, all authenticated The authors declare that they have no known competing financial
participants have equal rights to give their opinion and access the in interests or personal relationships that could have appeared to influence
formation related to interactions and data reported from the project site. the work reported in this paper.
Another advantage of BCT is that change in orders does not lead to
disputes because every change is considered a new transaction needed a Acknowledgments
new consensus. Users can choose whether to be part of this new trans
action. Thus, one of the leading causes to bring contractors into conflict This work was partly funded by the Monash Data Futures Institute
with employers would be lost. (MDFI) grant scheme on “AI and Data Science for Monash Global
As a result, to effectively apply a blockchain to reduce construction Challenges”. Any opinions, findings, conclusions, and recommendations
disputes, several open issues must be addressed: a) developing a deep expressed in this paper are those of the authors and do not necessarily
knowledge of a blockchain so as not to face more significant risks and reflect the views of MDFI. The assistance of the ASCII Lab members at
disputes; b) managing any uncertainty to make BCT more powerful to Monash University is greatly appreciated.
Appendix A
Table A1
Categorical review of BCT applications.
A smart contract system for security of payment [32] Automation in Construction Construction Payments
A Blockchain-Based Privacy-Preserving Payment IEEE Network (2018) 32(6) 184–192 Energy Payments
Mechanism [59]
BCT for construction engineering management [65] Higher Education Press Construction Payments
Automating Construction Progress Payments [61] Journal of Legal Affairs and Dispute Resolution in Engineering and Construction Construction Payments
Blockchain-based fair payment [62] Information Sciences Computing Payments
A Dual-Deposit Escrow Smart Contract [63] 2019 IEEE International Conference on Blockchain and Cryptocurrency (ICBC) Digitalization Payments
Construction Payment Automation through Smart Proceedings of the 36th International Symposium on Automation and Robotics in Construction Payments
Contract [64] Construction (ISARC)
Public and private blockchain in construction [67] Automation in Construction Construction Payments
Securing interim payments in construction projects [68] Automation in Construction Construction Payments
Integrating blockchain for data sharing and collaboration 2017 IEEE 28th Annual International Symposium on Personal, Indoor, and Mobile Healthcare Collaboration
[71] Radio Communications (PIMRC)
BIM + Blockchain: A Solution to the Trust Problem in The Dublin School of Architecture Construction Collaboration
Collaboration [72]
Blockchain technology and BIM process [73] Journal of Information Technology in Construction (ITcon) Construction Collaboration
blockchain and interaction system of investment and IOP Conference Series Materials Science and Engineering Construction Collaboration
construction activity [74]
Digital twin and blockchain enhanced smart Journal of Manufacturing Systems Manufacturing Collaboration
manufacturing service collabo [75]
smart construction objects as blockchain oracles [76] Automation in Construction Construction Collaboration
BCT for Healthcare Data Management [77] Healthcare Informatics Research Healthcare Collaboration
Blockchain in Medical Informatics [78] Journal of Industrial Information Integration Healthcare Documentation
Transparency and Accountability in Blockchain [79] Proceedings of the 20th Annual International Conference on Digital Government Legal Documentation
Research
How Blockchain Could Empower eHealth [80] Data Management and Analytics for Medicine and Healthcare Healthcare Documentation
A blockchain-based integrated document management Automation in Construction Construction Documentation
[7]
Blockchain-aided information exchange records [81] Automation in Construction Construction Documentation
8
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