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The Potential of Blockchain in Building Construction

Civil Engineering, Ecole Centrale de Lille, 59651 Villeneuve d’Ascq, France
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Buildings 2019, 9(4), 77; https://doi.org/10.3390/buildings9040077
Received: 8 February 2019 / Revised: 21 February 2019 / Accepted: 26 February 2019 / Published: 5 April 2019
Construction customers want more complex facilities delivered faster and at a lower cost. Transaction costs account for a significant proportion of each new or refurbished facility (a 2017 report from the Infrastructure Client Group in the UK suggests as high as 50%), yet they contribute no value to the customer. Blockchain is being suggested as a way to reduce transaction costs by eliminating the need for intermediaries to build trust as a prerequisite for successfully executed agreements. This study first describes the thinking that underpins blockchain technology, outlining how it works, and the potential limitations of the technology. Second, using a case study, reviews the potential cost savings from the use of blockchain for a real estate company. The results reveal a potential cost savings from blockchain deployment at 8.3% of the total cost of residential construction, with a standard deviation of 1.26%. Third, we explore the implications, risks and applications of blockchain technology for improving flow in the end-to-end design and construction process and we identify opportunities for future research on blockchain applications in construction. View Full-Text
Keywords: blockchain; construction; BIM; transactional costs; lean construction blockchain; construction; BIM; transactional costs; lean construction
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Dakhli, Z.; Lafhaj, Z.; Mossman, A. The Potential of Blockchain in Building Construction. Buildings 2019, 9, 77.

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