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The construction industry is often criticised due to inherited challenges: poor payment practices, inadequate collaboration, etc. Blockchain has the potential to address these issues with its salient features. Nonetheless, adopting blockchain and smart contracts (B&SC) within the construction industry is a comprehensive endeavour due to its intricate nature. The situation is bleak in Sri Lanka due to numerous barriers such as limited technical expertise, cost implications and many others. Hence, this paper aims to examine these barriers, appropriate strategies to overcome them, explore potential blockchain-applicable areas and formulate a framework to adopt B&SC in the construction industry of Sri Lanka (CISL).

This study employed a mixed research approach. The barriers for the adoption of B&SC to the CISL and their applicable areas were distinguished through a questionnaire survey and analysed using the Relative Importance Index. Strategies to overcome them were identified through expert interviews and analysed utilising manual-content analysis.

The study identified 15 barriers, 12 strategies and 9 areas for integrating B&SC for the CISL. The analysis indicated that having fewer blockchain-powered applications, the reluctance of the enterprises to bear costs to integrate blockchain and sluggish adaptation to new digital technologies are significant barriers. Further, conducting an industry-wide digitalisation analysis, developing an industry-wide digitalisation strategy and recruiting skilful IT staff were pointed out as the pivotal strategies. Moreover, payment and supply chain management were identified as areas with high potential.

This study unveils an analysis of barriers, strategies and areas in adopting B&SC for CISL and formulates a framework. It can be deployed as a guideline for implementing B&SC in the CISL.