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September 16, 2025Cantilever Jurnal Penelitian dan Kajian Bidang Teknik Sipil0 citationsOpen Access

Smart Contracts in the Construction Industry: A New Era of Transparency and Efficiency

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RARyan AdiputeraFOFuk Jin Oei

Key Points

  • Smart contracts automate payments tied to verified work progress, improving financial efficiency.
  • Blockchain technology provides secure, immutable data recording, reducing disputes in the construction industry.
  • Integration with Building Information Modeling (BIM) and the Internet of Things (IoT) enhances project management capabilities.
  • Despite benefits, challenges like regulatory uncertainty and the need for standardization may hinder technology adoption.

Abstract

Construction industry often faces challenges such as payment delays, contract disputes, and a lack of transparency and administrative efficiency. Smart contract technology based on blockchain offers an innovative approach to address these issues through transparent, automated, and tamper-resistant systems. This study explores various applications of blockchain and smart contracts in construction projects, including solutions for automated progress payments, digital contract management, quality improvement, and technology-based dispute resolution, using the Systematic Literature Review (SLR) method. Smart contract systems can execute payments automatically based on verified work progress, while blockchain technology ensures secure and immutable data recording. Additionally, integration with technologies such as Building Information Modeling (BIM) and the Internet of Things (IoT) enhances real-time project management. Despite offering numerous benefits, the implementation of these technologies still faces challenges such as regulatory uncertainty, infrastructure readiness, and the need for standardization. This study highlights that the adoption of blockchain and smart contracts holds significant potential to drive efficiency, fairness, and digital transformation in the construction sector.

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Cite This Study

Adiputera et al. (2025) studied this question.

synapsesocial.com/papers/68d4565b31b076d99fa5b2a0https://doi.org/10.35139/cantilever.v14i2.474
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