Abstract
Construction contract administration (CCA) defines the processes for fulfilling the obligations and protecting the rights of the contracting parties throughout the contract duration. Poor CCA performance remains one of the most significant challenges in the industry in terms of delays, cost escalation, and disputes. The advent of blockchain technology and its associated smart contracts offers an opportunity to rethink CCA thereby mitigating or even eliminating current CCA problems.To this effect, this PhD work applied blockchain technology to the FIDIC Red Book 2017, an international standard contract model, widely used in the industry. Taking the extension of time (EoT) claims management process as a particular instance of the wider CCA system, this study demonstrates a proof-of-concept system (ChainedEOTClaim) for enhancing the EoT claims management process. After rigorous contractual analysis of the provisions of the FIDIC claims management process, a system architecture was developed. The architecture was then translated, via coding within the Hyperledger Fabric platform, into a workable blockchain-based system and ‘smart contract’ functions.
The research followed the Design Science Research (DSR) methodology. The system’s coding was validated and tested by experts in blockchain development. Its functionality was then evaluated by industry claims experts using Semantic Differential Scaling coupled with interview questions. This two-part evaluation of structure and functionality revealed a viable system that can be scaled to other contractual processes. In addition, a set of limitations in the form of additional recommended features and functionalities were recognised for future research.
The work is of relevance to theory and practice. For the former, it provides an advanced and workable example of blockchain applied to CCA that has potential for construction in general. It shifts the focus of current research efforts from blockchain per se to its capacity for embedded ‘smart contract’ functions within a real contractual context. In practical terms, it is grounded in a practice-based view by referring to an array of challenges faced in claims management on construction projects and adopting the context of FIDIC Red Book 2017. To this end, it contributes to practice by demonstrating a proof-of-concept of how the digital operation of contractual rules and administering construction contractual processes through technology can tackle inherent challenges.
Date of Award | 23 Jan 2025 |
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Original language | English |
Awarding Institution |
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Supervisor | David Greenwood (Supervisor), Jennifer Li (Supervisor) & Mohamad Kassem (Supervisor) |
Keywords
- Transaction cost economics (TCE)
- Challenges facing contractual claims management
- Blockchain-based smart contracts
- Hyperledger Fabric
- Design Science Research (DSR)