Construction projects are conducted by groups working together based on pre-agreed specifications written into contracts. Each party is generally paid when a certain work package is completed. All parties depend on the availability of information, supplies and tools to be at their use and up to date at the right time and in the right place.
Due to the fact that the sector is highly fragmented with a high number of operators, things can sometimes go wrong. Problems can be found in construction material supply chains and the fact that most of the related and critical documents such as purchase orders, delivery notes and invoices are often paper-based and stored in siloed systems. Not knowing for sure if the required supplies are in stock when a project or task starts can lead to delays and additional, unforeseen costs.
Blockchain can be used in construction to improve the supply chains and their management while creating a real time view of available supplies and resources from all the parties. Blockchain acts as an immutable ledger, reliably recording information from different logbooks, tasks performed and material quantities delivered and utilised.
Payments for completed projects such as subcontracts can be streamlined and automated. Connecting all the different operators in a peer-to-peer environment can improve project transparency and management.