Building a new world with blockchain in construction

When it comes to industries destined for disruption by blockchain, construction usually isn't first to mind. The conventional image of building sites, as they stand, feel far removed from coding, crypto and hackathons. Indeed, enormous benefits are out there for construction to capitalize on in regards to blockchain technology. The following article will encapsulate some of the likely uses of blockchain within construction. 

Construction Supply Chains and Blockchain
The construction industry relies on the accessibility of quality tools and supplies in the right place and at the right time. Due to the fact that that the industry has a high level of fragmentation from many players of large and small size, supply chains are key. 

Delivery notes, purchase orders and invoices are still usually reliant on paper formats. Firms generally aren't sure if the needed supplies are available and in stock when a project gets started. This often leads to more costs and more delays. 

These consequences aren’t even among the worst. The contract Carillion with the UK government broke apart at the offset of 2018 and affected 43,000 jobs as a consequence. A critical factor in the collapse happened to point to the poor management within the supply chain. It was also because of the lack of project visibility and lousy credit administration. 

The blockchain is already providing evidence of its efficacy in supply chains. One instance is through the association between IBM and Walmart. Blockchain application for managing construction supply chains would allow for a single source of reference for the provenance and availability of construction supplies. Tracking payments would also be more streamlined. 

The field of construction is taking heed of this use case with blockchain. Latest news confirms that one of Australia’s largest building companies, Probuild, has joined together with Brickschain, a US-based blockchain construction innovator, to manage its international supply chain. 

The news affirms that “Probuild can see that AEC, Blockchain and Big Data will completely transform construction supply chain systems.” 

Construction Project Management and Blockchain
Projects in construction rely heavily on numerous parties working in conjunction to finish buildings around pre-defined determinations. Each group anticipates a payment for completed work. 

That means the peer-to-peer capacities of blockchain, as well as the smart contract capacities, allows for unparalleled project management streamlining. Research examining potential of blockchain in construction management discovered that "on construction sites, blockchain improves the trustworthiness and reliability of construction logbooks, duties performed and material records.”