Insights into Blockchain Implementation in Construction: Models for Supply Chain Management

Algan Tezel, Pedro Febrero, Eleni Papadonikolaki, Ibrahim Yitmen

Research output: Contribution to journalArticlepeer-review

72 Citations (Scopus)


The interest in the implementation of distributed ledger technologies (DLTs) is on the rise in the construction sector. One specific type of DLT that has recently attracted much attention is blockchain. Blockchain has been mostly discussed conceptually for construction to date. This study presents some empirical discussions on supply chain management (SCM) applications of blockchain for construction by collecting feedback for three blockchain-based models: project bank accounts (PBAs) for payments, reverse auction-based tendering for bidding, and asset tokenization for project financing. The feedback was collected from three focus groups and a workshop. The working prototypes for the models were developed on Ethereum. The implementation of blockchain in payment arrangements was found to be simpler than in tendering and project tokenization workflows. However, the blockchain integration of those workflows may have large-scale impacts on the sector in the future. A broad set of general and model-specific benefits/opportunities and requirements/challenges was also identified for blockchain in construction. Some of these include streamlined, transparent transactions and rational trust building, and the need for challenging the sector culture, upscaling the legacy information technology (IT) systems, and compliance with the regulatory structures.

Original languageEnglish
JournalJournal of Management in Engineering - ASCE
Issue number4
Early online date10 May 2021
Publication statusPublished - 1 Jul 2021


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