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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
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Abstract

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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This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).
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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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