A Study on the Application of Blockchain Technology in the Construction Industry

Abstract

Blockchain technology has been recognized as one of the emerging technologies that can significantly innovate many industries. Major advantages of using blockchain technology includes reducing transaction costs, preventing data forgery and alteration, and further flexibility. The construction industry is generally considered as an industry that has great potentials for blockchain technology utilization mainly due to the high volume of transactions among various entities. Despite the perceived positive impact, there have been few cases of blockchain applications within the construction industry. This study is conducted with an aim of finding ways to apply blockchain technology to the construction industry. In order to identify potential application areas, construction lifecycle and project management knowledge areas are used in developing a survey questionnaire. Data collected from the survey is analyzed by employing importance performance analysis (IPA) method considering both applicability of the technology and anticipated impact from utilizing the technology. In relation to the construction project lifecycle, 'Project Cost/Change Management', 'Contract Bidding and Formation', and 'Procurement Evaluation' are emerged as top three candidates for blockchain application with high applicability and impact. Regarding the knowledge area, 'Procurement Management' and 'Cost Management' are identified as the main blockchain application areas with high applicability and impact. All the identified specific construction tasks with high applicability and impact are related to 'Procurement', 'Contract', and 'Cost'. Therefore, it is reasonable to start focusing blockchain convergence efforts these areas and then expand them as the technology matures.