A Blockchain and Smart Contract Platform for Financial Management in Modular Steel Construction Projects

Abstract

Modular steel construction is a form of off-site construction that helps construction faster and more efficiently. Yet, financial management in these projects is unique and challenging. Their challenges are uncertain payments, unclear financial processes, and obscure financial transactions, which lead to payment delays and trust issues among project stakeholders. This research develops a blockchain and smart contract platform, which facilitates financial management in modular steel projects. The system can be used to track project progress in real time and process project payments automatically when all conditions are met. Blockchain keeps transactions secure, ensures immutable data, and enhances transparency. Smart contracts guarantee systematic and transparent payments, which mitigate payment delays and the need for intermediaries. By implementing the system prototype, we found that it can extenuate payment delays and make financial transactions more systematic. Also, it enhances trust among project stakeholders via verifiable and reliable transactions.