Contents

1. LITERATURE REVIEW...................................................................................................2

1.1. Introduction.....................................................................................................................2

1.2. Payment In the Construction Industry.............................................................................2

1.3. Payment Issues in Construction......................................................................................3

1.4. The Late Payment Epidemic in the UK..........................................................................5

1.5. Smart Contracts...............................................................................................................7

1.5.1. Overview..................................................................................................................7

1.5.2. Mechanism of Smart Contracts................................................................................8

1.5.3. Potential Benefits of Smart Contracts....................................................................10

1.5.4. Limitations Of Smart Contracts.............................................................................13

1.6. Smart contract applications in the construction industry..............................................15

1.7. Smart contract challenges in the construction industry.................................................15

1.8. Summary.......................................................................................................................17

1.9. Reference.......................................................................................................................19
 1. LITERATURE REVIEW

1.1. Introduction

1.2. Payment In the Construction Industry

1.3. Payment Issues in Construction

1.4. The Late Payment Epidemic in the UK

1.5. Smart Contracts

1.5.1. Overview

 Clear Communication and Transparency

 Speed and Efficiency
 Security
 Cost Reduction

Table 1: Summary of the benefits of smart contracts identified in the literature

 Contractual Secrecy
 Allocation of Risk and Liability
 Legal Adjudications and Enforceability

Table 2: Summary of the limitations of smart contracts identified in the literature

1.6. Smart contract applications in the construction industry

1.7. Smart contract challenges in the construction industry

Table 3: Summary of the key challenges of smart contracts identified in the literature

1.8. Reference

Zou, W., Lo, D., Kochhar, P.S., Le, X.-B.D., Xia, X., Feng, Y., Chen, Z. and Xu, B. (2019).
Smart Contract Development: Challenges and Opportunities. IEEE Transactions on Software
Engineering, 47(10), pp.1–11.