Abstract
Studies have demonstrated that advanced technology, such as smart contract applications, can enhance both pre- and post-contract administration within the built environment sector. Smart contract technology, exemplifying blockchain technologies, has the potential to improve transparency, trust, and the security of data transactions within this sector. However, there is a dearth of academic literature concerning smart contract applications within the construction industries of developing countries, with a specific focus on Nigeria. Consequently, this study seeks to explore the relevance of smart contract technology and address the challenges impeding its adoption, offering strategies to mitigate the obstacles faced by smart contract applications. To investigate the stakeholders, this research conducted 14 virtual interview sessions to achieve data saturation. The interviewees encompassed project management practitioners, senior management personnel from construction companies, experts in construction dispute resolution, professionals in construction software, and representatives from government construction agencies. The data obtained from these interviews underwent thorough analysis employing a thematic approach. The study duly recognizes the significance of smart contract applications within the sector. Among the 12 identified barriers, issues such as identity theft and data leakage, communication and synchronization challenges, high computational expenses, lack of driving impetus, excessive electricity consumption, intricate implementation processes, absence of a universally applicable legal framework, and the lack of a localized legal framework were recurrent impediments affecting the adoption of smart contract applications within the sector. The study also delves into comprehensive measures to mitigate these barriers. In conclusion, this study critically evaluates the relevance of smart contract applications within the built environment, with a specific focus on promoting their usage. It may serve as a pioneering effort, especially within the context of Nigeria.
Article PDF
Similar content being viewed by others
Explore related subjects
Find the latest articles, discoveries, and news in related topics.Avoid common mistakes on your manuscript.
References
Aggarwal S, Kumar N (2021). Chapter sixteen: Hyperledger. In: Aggarwal S, Kumar N, Raj P, eds. Advances in Computers: The Blockchain Technology for Secure and Smart Applications across Industry Verticals. Cambridge, MA: Elsevier, 323–343
Aghimien D O, Aigbavboa C O, Oke A E (2020). Critical success factors for digital partnering of construction organisations: A Delphi study. Engineering, Construction, and Architectural Management, 27(10): 3171–3188
Ahmadisheykhsarmast S, Sonmez R (2020). A smart contract system for security of payment of construction contracts. Automation in Construction, 120: 103401
Aibinu A, Venkatesh S (2014). Status of BIM adoption and the BIM experience of cost consultants in Australia. Journal of Professional Issues in Engineering Education and Practice, 140(3): 04013021
Aigbavboa C, Ebekozien A, Mkhize N (2023). A qualitative approach to investigate governance challenges facing South African airlines in the fourth industrial revolution technologies era. Social Responsibility Journal, 19(8): 1507–1520
Arcadis J C (2016). Global construction disputes report 2016: Don’t get left behind. Online Report
Badi S, Ochieng E, Nasaj M, Papadaki M (2021). Technological, organisational and environmental determinants of smart contracts adoption: UK construction sector viewpoint. Construction Management and Economics, 39(1): 36–54
Bogue R (2018). What are the prospects for robots in the construction industry? Industrial Robot, 45(1): 1–6
Cardeira H (2015). Smart contracts and their applications in the construction industry. Romanian Construction Law Review, 1(1): 1–6
Chen T, Cao R, Li T, Luo X, Gu G, Zhang Y, Liao Z, Zhu H, Chen G, He Z, Tang Y, Lin X, Zhang X (2020). SODA: A generic online detection framework for smart contracts. In: Proceedings of the 27th Network and Distributed System Security Symposium. San Diego, CA: 24449
Christensen S, McNamara J, O’Shea K (2007). Legal and contracting issues in electronic project administration in the construction industry. Structural Survey, 25(3/4): 191–203
Corbin J, Strauss A (2015). Basics of Qualitative Research: Techniques and Procedures for Developing Grounded Theory. 4th ed. Thousand Oaks, CA: Sage Publications, Inc.
Dhillon V, Metcalf D, Hooper M (2017). The hyperledger project. In: Dhillon V, Metcalf D, Hooper M, eds. Blockchain Enabled Applications. Berkeley, CA: Apress, 139–149
Diallo N, Shi W, Xu L, Gao Z, Chen L, Lu Y, Shah N, Carranco L, Le T C, Surez A B, Turner G (2018). eGov-DAO: A better government using blockchain based decentralised autonomous organisation. In: Proceedings of the International Conference on eDemocracy and eGovernment (ICEDEG). Ambato: IEEE, 166–171
Dolgui A, Ivanov D, Potryasaev S, Sokolov B, Ivanova M, Werner F (2020). Blockchain-oriented dynamic modelling of smart contract design and execution in the supply chain. International Journal of Production Research, 58(7): 2184–2199
Ebekozien A (2020). Corrupt acts in the Nigerian construction industry: Is the ruling party fighting corruption? Journal of Contemporary African Studies, 38(3): 348–365
Ebekozien A, Aigbavboa C (2021). COVID-19 recovery for the Nigerian construction sites: The role of the fourth industrial revolution technologies. Sustainable Cities and Society, 69: 102803
Ebekozien A, Aigbavboa C, Samsurijan S M (2023a). An appraisal of blockchain technology relevance in the 21st century Nigerian construction industry: Perspective from the built environment professionals. Journal of Global Operations and Strategic Sourcing, 16(1): 142–160
Ebekozien A, Samsurijan M S (2022). Incentivisation of digital technology takers in the construction industry. Engineering, Construction, and Architectural Management, in press, doi:https://doi.org/10.1108/ECAM-02-2022-0101
Ebekozien A, Thwala W D, Aigbavboa C O, Samsurijan M S (2023b). Investigating the role of digitalisation in building collapse: Stakeholders’ perspective from unexplored approach. Engineering, Construction, and Architectural Management, in press, doi:https://doi.org/10.1108/ECAM-04-2023-0337
Finck M (2018). Blockchains and data protection in the European Union. European Data Protection Law Review, 4(1): 17–35
Gai K, Wu Y, Zhu L, Xu L, Zhang Y (2019). Permissioned blockchain and edge computing empowered privacy-preserving smart grid networks. IEEE Internet of Things Journal, 6(5): 7992–8004
Giancaspro M (2017). Is a “smart contract” really a smart idea? Insights from a legal perspective. Computer Law & Security Report, 33(6): 825–835
Gurgun A P, Koc K (2022). Administrative risks challenging the adoption of smart contracts in construction projects. Engineering, Construction, and Architectural Management, 29(2): 989–1015
Halilbegovic S, Ertem N (2020). An explorative paper on speculative approaches to smart contracts. Prague Economic Papers, 29(4): 469–480
Hiroki W, Fujimura S, Nakadaira A, Miyazaki Y, Akutsu A, Kishigami J (2016). Blockchain contract: Securing a blockchain applied to smart contracts. In: Proceedings of the IEEE International Conference on Consumer Electronics (ICCE). Las Vegas, NV: IEEE, 467–468
Ho F (2016). Interview: Richard Saxon Hu W, Hu Y, Yao W, Lu W, Li H, Lv Z (2019). A blockchain-based smart contract trading mechanism for energy power supply and demand network. Advances in Production Engineering & Management, 14(3): 284–296
Hughes D (2017). The impact of blockchain technology on the construction industry
Ibrahim F S, Ebekozien A, Khan P, Aigbedion M, Ogbaini I F, Amadi G (2022). Appraising fourth industrial revolution technologies’ role in the construction sector: How prepared is the construction consultants? Facilities, 40(7/8): 515–532
Jaafar M, Ebekozien A, Mohamad D (2021). Community participation in environmental sustainability: A case study of proposed Penang Hill Biosphere Reserve, Malaysia. Journal of Facilities Management, 19(4): 527–549
Kirli D, Couraud B, Robu R, Salgado-Bravo M, Norbu S, Andoni M, Antonopoulos I, Negrete-Pincetic M, Flynn D, Kiprakis A (2021). Smart contract implementation example. Github
Kirli D, Couraud B, Robu V, Salgado-Bravo M, Norbu S, Andoni M, Antonopoulos I, Negrete-Pincetic M, Flynn D, Kiprakis A (2022). Smart contracts in energy systems: A systematic review of fundamental approaches and implementations. Renewable & Sustainable Energy Reviews, 158: 112013
Kolvart M, Poola M, Rull A (2016). Smart contracts. In: Kerikmäe T, Rull A, eds. The Future of Law and eTechnologies. Cham: Springer, 133–147
Kumar Bhardwaj A, Garg A, Gajpal Y (2021). Determinants of blockchain technology adoption in supply chains by small and medium enterprises (SMEs) in India. Mathematical Problems in Engineering, 5537395
Leka E, Lamani L, Selimi B, Deçolli E (2019). Design and implementation of smart contract: A use case for geo-spatial data sharing. In: Proceedings of the 42nd International Convention on Information and Communication Technology, Electronics and Microelectronics (MIPRO). Opatija: IEEE, 1565–1570
Li J, Greenwood D, Kassem M (2019). Blockchain in the built environment and construction industry: A systematic review, conceptual models and practical use cases. Automation in Construction, 102: 288–307
Liu S, Xie B, Tivendal L, Liu C (2015). Critical barriers to BIM implementation in the AEC industry. International Journal of Marketing Studies, 7(6): 162–171
Luu L, Chu D H, Olickel H, Saxena P, Hobor A (2016). Making smart contracts smarter. In: Proceedings of the ACM SIGSAC Conference on Computer and Communications Security. Vienna: ACM, 254–269
Mannaro K, Pinna A, Marchesi M (2017). Crypto-trading: Blockchain-oriented energy market. In: AEIT International Annual Conference. Cagliari: IEEE, 1–5
Mason J (2016). Construction Law: From Beginner to Practitioner. London: Routledge
McKinsey (2017). Reinventing Construction: A Route to Higher Productivity. McKinsey&Company Online Report
McNamara A, Sepasgozar S M E (2018). Barriers and drivers of intelligent contract implementation in construction. In: Proceedings of the 42nd AUBEA Conference on Educating Building Professionals for the Future in the Globalised World. Singapore: 281–293
McNamara A J, Sepasgozar S M E (2020). Developing a theoretical framework for intelligent contract acceptance. Construction Innovation, 20(3): 421–445
McNamara A J, Sepasgozar S M E (2021). Intelligent contract adoption in the construction industry: Concept development. Automation in Construction, 122: 103452
Mossberg M, Manzano F, Hennenfent E, Groce A, Grieco G, Feist J, Brunson T, Dinaburg A (2019). Manticore: A user-friendly symbolic execution framework for binaries and smart contracts. In: Proceedings of the 34th IEEE/ACM International Conference on Automated Software Engineering. San Diego, CA: IEEE, 1186–1189
Nanayakkara S, Perera S, Senaratne S, Weerasuriya G T, Bandara H M N D (2021). Blockchain and smart contracts: A solution for payment issues in construction supply chains. Informatics, 8(2): 36–46
Negara E S, Hidayanto A N, Andryani R, Syaputra R (2021b). Survey of smart contract framework and its application. Information, 12(7): 257–266
Nzuva S (2019). Smart contracts implementation, applications, benefits, and limitations. Journal of Information Engineering and Applications, 9(5): 63–75
Odubiyi T B, Aigbavboa C O, Thwala W D (2021). A concise review of the evolution of information and communication technologies for engineering innovations. In: IOP Conference Series: Materials Science and Engineering. Ota: IOP Publishing, 012231
Oprea S V, Bara A, Andreescu A I (2020). Two novel blockchain-based market settlement mechanisms embedded into smart contracts for securely trading renewable energy. IEEE Access, 8: 212548–212556
Pan J, Wang J, Hester A, Alqerm I, Liu Y, Zhao Y (2019). EdgeChain: An edge-IoT framework and prototype based on blockchain and smart contracts. IEEE Internet of Things Journal, 6(3): 4719–4732
Plano-Clark V L, Creswell J W (2015). Understanding Research: A Consumer’s Guide. 2nd ed. Boston, MA: Pearson
Roberts M (2014). Government’s BIM target unachievable. Pinsent Masons Survey
Rusakova E P, Frolova E E, Gorbacheva A, Kupchina E V (2019). Implementation of the smart-contract construction in the legal system of Russia. In: Proceedings of the 6th International Conference on Education, Social Sciences and Humanities. Istanbul: 748–753
Salha R A, El-Hallaq M A, Alastal A I (2019). Blockchain in smart cities: Exploring possibilities in terms of opportunities and challenges. Journal of Data Analysis and Information Processing, 7(3): 118–139
Saunders M N K, Lewis P, Thornhill A (2019). Research Methods for Business Students. 8th ed. Harlow: Pearson Education
Sepasgozar S M, Davis S R, Li H, Luo X (2018). Modelling the implementation process for new construction technologies: Thematic analysis based on Australian and US practices. Journal of Management Engineering, 34(3): 05018005
Tatum C (1989). Organising to increase innovation in construction firms. Journal of Construction Engineering and Management, 115(4): 602–617
Teddlie C, Tashakkori A (2010). Major issues and controversies in the use of mixed methods in the social and behavioural science. In: Tashakkori A, Teddlie C, eds. Sage Handbook of Mixed Methods in Social and Behavioural Research. 2nd ed. Thousand Oaks, CA: Sage Publications, Inc.
Timchuk O G, Nikityuk L G, Bakhtairova E A (2021). Integration of innovations in the construction industry. In: IOP Conference Series: Earth and Environmental Science. Irkutsk: IOP Publishing, 012181
Tsampoulatidis I, Bechtsis D, Kompatsiaris I (2019). Chapter 8: Moving from e-Gov to we-Gov and beyond: A blockchain framework for the digital transformation of cities. In: Komninos N, Kakderi C, eds. Smart Cities in the Post-Algorithmic Era. Cheltenham: Edward Elgar Publishing
Wahab A, Wang J, Shojaei A, Ma J (2023). A model-based smart contracts system via blockchain technology to reduce delays and conflicts in construction management processes. Engineering, Construction, and Architectural Management, 30(10): 5052–5072
Wearing D (2013). Inter-Institutional Collaboration in the New Zealand Tertiary Education Sector. Dissertation for the Doctoral Degree. East Lismore: Southern Cross University
Weerapperuma U S, Rathnasinghe A P, Jayasena H S, Wijewickrama C S, Thurairajah N (2023). A knowledge framework for blockchain-enabled smart contract adoption in the construction industry. Engineering, Construction, and Architectural Management, in press, doi: https://doi.org/10.1108/ECAM-01-2023-0012
Wong P F, Chia F C, Kiu M S, Lou E C W (2022). Potential integration of blockchain technology into smart sustainable city (SSC) developments: A systematic review. Smart and Sustainable Built Environment, 11(3): 559–574
Wulandary K, Panuwatwanich K, Henry M (2023). Readiness and potential application of smart contracts in the Indonesian construction industry. In: Proceedings of the 17th East Asian-Pacific Conference on Structural Engineering and Construction. Singapore: Springer, 249–263
Zheng Z, Xie S, Dai H N, Chen W, Chen X, Weng J, Imran M (2020). An overview on smart contracts: Challenges, advances and platforms. Future Generation Computer Systems, 105: 475–491
Zou W, Lo D, Kochhar P S, Le X B D, Xia X, Feng Y, Chen Z, Xu B (2021). Smart contract development: Challenges and opportunities. IEEE Transactions on Software Engineering, 47(10): 2084–2106
Acknowledgements
Special thanks to the participants for providing knowledgeable contributions to enhance the findings of this paper.
Author information
Authors and Affiliations
Corresponding author
Ethics declarations
Competing Interests The authors declare that they have no competing interests.
Additional information
This work was funded by Faculty of Engineering and the Built Environment and Construction Industry Development Board (CIDB) Centre of Excellence, University of Johannesburg, South Africa (Grant No. 0535-061890).
Open access funding provided by University of Johannesburg.
Rights and permissions
Open Access This article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made.
The images or other third party material in this article are included in the article’s Creative Commons licence, unless indicated otherwise in a credit line to the material. If material is not included in the article’s Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/.
About this article
Cite this article
Ebekozien, A., Aigbavboa, C., Adekunle, S.A. et al. Smart contract applications in the built environment: How prepared are Nigerian construction stakeholders?. Front. Eng. Manag. 11, 50–61 (2024). https://doi.org/10.1007/s42524-023-0275-z
Received:
Revised:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s42524-023-0275-z