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Understanding barriers to the adoption of blockchain-enabled smart contracts in construction projects: perspectives of construction practitioners

Ernest E. Ameyaw (Department of Architecture and Built Environment, Northumbria University – City Campus, Newcastle upon Tyne, UK)
George Agyekum-Mensah (School of the Built Environment and Architecture, London South Bank University, London, UK)
Bimal Kumar (Department of Architecture, University of Strathclyde, Glasgow, UK)
David John Edwards (School of Engineering and the Built Environment, Birmingham City University, Birmingham, UK) (Faculty of Engineering and the Built Environment, University of Johannesburg, Johannesburg, South Africa)

Smart and Sustainable Built Environment

ISSN: 2046-6099

Article publication date: 27 November 2024

132

Abstract

Purpose

Traditional paper-based contracts are document-intensive, insecure, susceptible to forgery and errors, detrimental to productivity improvement and require multiple intermediaries. Addressing these challenges requires computerised construction to modernise the way modern construction projects are procured with blockchain-enabled smart contracts. Smart contracts could replace paper-based contracts by improving transparency and security and automating contractual terms, processes and transacting activities. However, smart contracts are an emerging technology with limited adoption in construction projects, and the issues influencing its widespread adoption remain unclear and unexplored. Hence, this study aims at exploring and understanding the important obstacles to adoption of smart contracts in construction projects.

Design/methodology/approach

Using an international questionnaire survey, the study draws on experienced construction practitioners with direct involvement and knowledge in blockchain technology and smart contract initiatives and activities. Descriptive statistics and fuzzy logic techniques were used to analyse and model the quantitative survey data to establish the critical barriers to smart contracts adoption.

Findings

Organisational and external characteristics, personal characteristics and technology characteristics constitute major obstacles to the successful adoption of smart contracts. Construction practitioners’ limited knowledge of smart contracts, resistance to technology change, insufficiently digitalised construction industry and lack of or weak governmental support are critical to smart contracts adoption.

Originality/value

The research contributes to the body of knowledge on diffusing cutting-edge technology by advancing the understanding of practitioners’ perspectives on the primary obstacles to smart contracts adoption. Understanding the obstacles provides industry stakeholders (policymakers, leaders and practitioners) with underpinning knowledge with which to develop and implement corrective actions.

Keywords

Acknowledgements

This paper reports on partial findings of a study on blockchain-based smart contracts adoption in construction projects, from which other research publication(s) have been produced with different aim(s) but share common research background and methods/approach. The research presented here was funded by the Department of Architecture and Built Environment, Northumbria University, Newcastle upon Tyne, UK, under the QR Budget. The authors are grateful to the reviewers for their constructive comments.

Citation

Ameyaw, E.E., Agyekum-Mensah, G., Kumar, B. and Edwards, D.J. (2024), "Understanding barriers to the adoption of blockchain-enabled smart contracts in construction projects: perspectives of construction practitioners", Smart and Sustainable Built Environment, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/SASBE-03-2024-0078

Publisher

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Emerald Publishing Limited

Copyright © 2024, Emerald Publishing Limited

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