What the blockchain can do for the development of construction projects

Disregard Bitcoin while reading the following article. We are going to go into Blockchain. Blockchain is what many Cryptocurrencies are using as a platform. It is the ledger system used to record transactions and it is disrupting the construction industry. 

A statement in All About the Bitcoin Industry detailed how “distributed ledger technology allows for the design of tools that can help streamline systems in the development of projects and the management processes attached to them. When you eliminate the requirement of intermediaries or third parties, it leads to a reduction of costs and more empowerment at all levels of business." 

Just like a bank’s ledger ― their own private data is what keeps track of every banking transaction they perform. This ledger gives them information on how much money they've divested, invested, received, paid out and more. The ledger has vulnerabilities since the bank centrally controls it. This means there's a place you (or an intruder) can gain access to and alter to extract funds, alter or steal data contained within. 

The Reason Productivity in Construction is Lacking

One of the main reasons has been due to regulations that have led to companies seeking to streamline compliance and legislation satisfaction instead of increased productivity. A lot of this regulation has been due to the advantage of worker security and safety. There's no doubt that this is going to continue, but dedicating a portion of resources to productivity will help achieve faster results at a lower cost. 

New developments such as robotic totaling stations and 3D scanners and advanced processes like BIM aim to help make us more money from our projects through enhanced efficiency, but an area where we can observe immediate improvements is in the automation or reduction of financial and administrative processes. 

That's Where The Blockchain Comes into Play

We'll be using BIM as an example of a process structure in the next description, but this method can work easily without it. The model could be considered as the contract among the GC, the owner and the subcontractor. The actual construction has to coincide with the model. When the model isn't taken into account, you might be asked to fix it or return it. If the model has errors or clashes, you can raise a contract dispute. You get paid when the work is confirmed as completed. This is usually verified through consultants or the GC that's verifying the fulfilled work.