Integrated building information modeling and blockchain system for decentralized progress payments in construction projects

Article

Khalid, Muhammad Asfund, Hassan, Muhammad Usman, Ullah, Fahim and Ahmed, Khursheed. 2024. "Integrated building information modeling and blockchain system for decentralized progress payments in construction projects." Journal of Engineering, Design and Technology. https://doi.org/10.1108/JEDT-04-2024-0252
Article Title

Integrated building information modeling and blockchain system for decentralized progress payments in construction projects

ERA Journal ID36308
Article CategoryArticle
AuthorsKhalid, Muhammad Asfund, Hassan, Muhammad Usman, Ullah, Fahim and Ahmed, Khursheed
EditorsChileshe, N.
Journal TitleJournal of Engineering, Design and Technology
Number of Pages27
Year2024
PublisherEmerald
Place of PublicationUnited Kingdom
ISSN1726-0531
Digital Object Identifier (DOI)https://doi.org/10.1108/JEDT-04-2024-0252
Web Address (URL)https://www.emerald.com/insight/content/doi/10.1108/JEDT-04-2024-0252/full/html
Abstract

Purpose
The debate around automation through digital technologies has gathered traction in line with the advancement of Industry 4.0. Blockchain-powered construction progress payment has emerged as an area that can benefit from such automation. However, the challenges inherent in real-time construction payment processes cannot be solely mitigated by blockchain. Including building information modeling (BIM)-based schedule information stored in decentralized storage linked with a smart contract (SC) can allow the efficient administration of payments. Accordingly, this study aims to present an integrated BIM-blockchain system (BBS) to administer decentralized progress payments in construction projects.

Design/methodology/approach
A mixed-method approach is adopted, including an extensive literature review, development of the integrated BBS, and a case study with 13 respondents to test and validate the BBS. This study proposes a BBS that extracts the invoices from BIM and pushes them to the decentralized app (dApp) for digital payment to the contractor through the Ethereum blockchain. The Solc npm package was used to compile the backend SC. Next.js was used to create the front end of the dApp. The Web3 npm package is paramount in developing a dApp. A total of 13 construction professionals working on the case study project were engaged through a questionnaire survey to comment on and validate the proposed BBS. A descriptive analysis was conducted on the case study data to apprehend the responses of expert professionals.

Findings
The proposed BBS creates an SC, enables sender verification, checks contract complaints, verifies bills, and processes the currency flow based on a coded payment logic. After passing the initial checks, the bill amount is processed and made available for the contractor to claim. Every activity on dApp leaves its trace on the blockchain ledger. A control mechanism for accepting or rejecting the invoice is also incorporated into the system. The case study-based validation confirmed that the proposed BBS could increase payment efficiency (92.3%), tackle financial misconduct (84.6%), ensure transparency and audibility (92.4%), and ensure payment security (61%) in construction projects. A total of 46.2% of respondents were skeptical of the BBS because of its dependency on cryptocurrencies. A further 23.1% of respondents indicated that the price fluctuation of cryptocurrencies is a major barrier to BBS adoption. Others highlighted the absence of legal frameworks for cryptocurrencies’ usage.

Originality/value
This study opens the avenue for the application of dApp for autonomous contract management and progress payments, which is flexible with applications across various construction processes. Overall, it is a potential solution to the endemic problem of cash flow that has devastating consequences for all project stakeholders. This is also aligned with the goals of Industry 4.0, where process automation is a key focus. The study provides a practice application for automated progress payments that can be leveraged in construction projects across the globe.

KeywordsBlockchain; Smart contracts; Construction automation; Building information modeling; Payment automation; Progress payment
Contains Sensitive ContentDoes not contain sensitive content
ANZSRC Field of Research 2020330201. Automation and technology in building and construction
Public Notes

The accessible file is the accepted version of the paper. Please refer to the URL for the published version.

Byline AffiliationsNational University of Sciences and Technology, Pakistan
School of Surveying and Built Environment
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Towards smart healthcare: UAV-based optimized path planning for delivering COVID-19 self-testing kits using cutting edge technologies
Munawar, Hafiz Suliman, Inam, Hina, Ullah, Fahim, Qayyum, Siddra, Kouzani, Abbas Z. and Mahmud, M. A. Parvez. 2021. "Towards smart healthcare: UAV-based optimized path planning for delivering COVID-19 self-testing kits using cutting edge technologies." Sustainability. 13 (18), pp. 1-21. https://doi.org/10.3390/su131810426
UAV based spatiotemporal analysis of the 2019–2020 New South Wales bushfires
Ullah, Fahim, Khan, Sara Imran, Munawar, Hafiz Suliman, Qadir, Zakria and Qayyum, Siddra. 2021. "UAV based spatiotemporal analysis of the 2019–2020 New South Wales bushfires." Sustainability. 13, pp. 1-35. https://doi.org/10.3390/su131810207
Using multivariate regression and ANN models to predict properties of concrete cured under hot weather: a case of Rawalpindi Pakistan
Maqsoom, Ahsen, Aslam, Bilal, Gul, Muhammad Ehtisham, Ullah, Fahim, Kouzani, Abbas Z., Mahmud, M. A. Parvez and Nawaz, Adnan. 2021. "Using multivariate regression and ANN models to predict properties of concrete cured under hot weather: a case of Rawalpindi Pakistan." Sustainability. 13, pp. 1-28. https://doi.org/10.3390/su131810164
A beginner’s guide to developing review-based conceptual frameworks in the built environment
Ullah, Fahim. 2021. "A beginner’s guide to developing review-based conceptual frameworks in the built environment." Architecture. 1 (1), pp. 5-24. https://doi.org/10.3390/architecture1010003
BIMp-chart — a global decision support system for measuring BIM implementation level in construction organizations
Malik, Qurratulain, Nasir, Abdur Rehman, Muhammad, Rabiah, Thaheem, Muhammad Jamaluddin, Ullah, Fahim, Khan, Khurram Iqbal Ahmad and Hassan, Muhammad Usman. 2021. "BIMp-chart — a global decision support system for measuring BIM implementation level in construction organizations." Sustainability. 13 (16), pp. 1-25. https://doi.org/10.3390/su13169270
Urban overheating assessment through prediction of surface temperatures: a case study of Karachi, Pakistan
Aslam, Bilal, Maqsoom, Ahsen, Khalid, Nauman, Ullah, Fahim and Sepasgozar, Samad. 2021. "Urban overheating assessment through prediction of surface temperatures: a case study of Karachi, Pakistan." ISPRS International Journal of Geo-Information. 10 (8), pp. 1-22. https://doi.org/10.3390/ijgi10080539
UAVs in disaster management: application of integrated aerial Imagery and convolutional neural network for flood detection
Munawar, Hafiz Suliman, Ullah, Fahim, Qayyum, Siddra, Khan, Sara Imran and Mojtahedi, Mohammad. 2021. "UAVs in disaster management: application of integrated aerial Imagery and convolutional neural network for flood detection." Sustainability. 13 (14), pp. 1-22. https://doi.org/10.3390/su13147547
A conceptual framework for blockchain smart contract adoption to manage real estate deals in smart cities
Ullah, Fahim and Al-Turjman, Fadi. 2023. "A conceptual framework for blockchain smart contract adoption to manage real estate deals in smart cities." Neural Computing and Applications. 35 (7), p. 5033–5054. https://doi.org/10.1007/s00521-021-05800-6
Investigating the flood damages in Lower Indus Basin since 2000: spatiotemporal analyses of the major flood events
Atif, Salman, Umar, Muhammad and Ullah, Fahim. 2021. "Investigating the flood damages in Lower Indus Basin since 2000: spatiotemporal analyses of the major flood events." Natural Hazards. 108, pp. 2357-2383. https://doi.org/10.1007/s11069-021-04783-w
Risk management in sustainable smart cities governance: a TOE framework
Ullah, Fahim, Qayyum, Siddra, Thaheem, Muhammad Jamaluddin, Al-Turjman, Fadi and Sepasgozar, Samad M.E.. 2021. "Risk management in sustainable smart cities governance: a TOE framework." Technological Forecasting and Social Change. 167. https://doi.org/10.1016/j.techfore.2021.120743
Advertising through UAVs: Optimized path system for delivering smart real‐estate advertisement materials
Ullah, Fahim, Al-Turjman, Fadi, Qayyum, Siddra, Inam, Hina and Imran, Muhammad. 2021. "Advertising through UAVs: Optimized path system for delivering smart real‐estate advertisement materials." International Journal of Intelligent Systems. 36 (7), pp. 3429-3463. https://doi.org/10.1002/int.22422
Modelling users’ perception of the online real estate platforms in a digitally disruptive environment: an integrated KANO-SISQual approach
Ullah, Fahim, Sepasgozar, Samad M.E., Shiwrozhan, Sara and Davis, Steven. 2021. "Modelling users’ perception of the online real estate platforms in a digitally disruptive environment: an integrated KANO-SISQual approach." Telematics and Informatics. 63. https://doi.org/10.1016/j.tele.2021.101660
Application of deep learning on UAV-based aerial images for flood detection
Munawar, Hafiz Suliman, Ullah, Fahim, Qayyum, Siddra and Heravi, Amirhossein. 2021. "Application of deep learning on UAV-based aerial images for flood detection." Smart Cities. 4 (3), pp. 1220-1243. https://doi.org/10.3390/smartcities4030065
Best Value Contractor Selection in Road Construction Projects: ANP-Based Decision Support System
Hasnain, Muhammad, Thaheem, Muhammad Jamaluddin and Ullah, Fahim. 2018. "Best Value Contractor Selection in Road Construction Projects: ANP-Based Decision Support System." International Journal of Civil Engineering. 16 (6), pp. 695-714. https://doi.org/10.1007/s40999-017-0199-2
Concession period of public private partnership projects: industry–academia gap analysis
Ullah, Fahim and Thaheem, Muhammad Jamaluddin. 2018. "Concession period of public private partnership projects: industry–academia gap analysis." The International Journal of Construction Management. 18 (5), pp. 418-429. https://doi.org/10.1080/15623599.2017.1333400
A systematic review of smart real estate technology: drivers of, and barriers to, the use of digital disruptive technologies and online platforms
Ullah, Fahim, Sepasgozar, Samad M.E. and Wang, Changxin. 2018. "A systematic review of smart real estate technology: drivers of, and barriers to, the use of digital disruptive technologies and online platforms." Sustainability. 10 (9), pp. 1-44. https://doi.org/10.3390/su10093142
System dynamics model to determine concession period of PPP infrastructure projects: overarching effects of critical success factors
Ullah, Fahim, Thaheem, Muhammad Jamaluddin, Sepasgozar, Samad M. E. and Forcada, Nuria. 2018. "System dynamics model to determine concession period of PPP infrastructure projects: overarching effects of critical success factors." Journal of Legal Affairs and Dispute Resolution in Engineering and Construction. 10 (4). https://doi.org/10.1061/(ASCE)LA.1943-4170.0000280
The performance gap in energy-efficient office buildings: how the occupants can help?
Ali, Qadeer, Thaheem, Muhammad Jamaluddin, Ullah, Fahim and Sepasgozar, Samad M. E.. 2020. "The performance gap in energy-efficient office buildings: how the occupants can help?" Energies. 13 (6). https://doi.org/10.3390/en13061480
Key factors influencing purchase or rent decisions in smart real estate investments: a system dynamics approach using online forum thread data
Ullah, Fahim and Sepasgozar, Samad M. E.. 2020. "Key factors influencing purchase or rent decisions in smart real estate investments: a system dynamics approach using online forum thread data." Sustainability. 12 (11), pp. 1-36. https://doi.org/10.3390/su12114382
Smart digital marketing capabilities for sustainable property development: a case of Malaysia
Low, Sheen, Ullah, Fahim, Shiwrozhan, Sara, Sepasgozar, Samad M. E. and Lee, Chyi Lin. 2020. "Smart digital marketing capabilities for sustainable property development: a case of Malaysia." Sustainability. 12 (13), pp. 1-40. https://doi.org/10.3390/su12135402
Contingency release during project execution: the contractor’s decision-making dilemma
Ayub, Bilal, Thaheem, Muhammad Jamaluddin and Ullah, Fahim. 2019. "Contingency release during project execution: the contractor’s decision-making dilemma." Project Management Journal. 50 (6), pp. 734-748. https://doi.org/10.1177/8756972819848250
Six Sigma in construction: a review of critical success factors
Qayyum Siddiqui, Siddra, Ullah, Fahim, Thaheem, Muhammad Jamaluddin and Gabriel, Hamza Farooq. 2016. "Six Sigma in construction: a review of critical success factors." International Journal of Lean Six Sigma. 7 (2), pp. 171-186. https://doi.org/10.1108/ijlss-11-2015-0045
Labor Productivity Assessment Using Activity Analysis on Semi High-Rise Building Projects in Pakistan
Sheikh, Noaman Akbar, Ullah, Fahim, Ayub, Bilal and Thaheem, Muhammad Jamaluddin. 2017. "Labor Productivity Assessment Using Activity Analysis on Semi High-Rise Building Projects in Pakistan." Engineering Journal. 21 (4), pp. 273-286. https://doi.org/10.4186/ej.2017.21.4.273
Influence of Six Sigma on project success in construction industry of Pakistan
Ullah, Fahim, Thaheem, Muhammad Jamaluddin, Qayyum Siddiqui, Siddra and Khurshid, Muhammad Bilal. 2017. "Influence of Six Sigma on project success in construction industry of Pakistan." The TQM Journal. 29 (2), pp. 276-309. https://doi.org/10.1108/TQM-11-2015-0136
Examining the impact of students’ attendance, sketching, visualization, and tutors experience on students’ performance: a case of building structures course in construction management
Ullah, Fahim, Sepasgozar, Samad, Tahmasebinia, Faham, Sepasgozar, Saleh Mohammad Ebrahimzadeh and Davis, Steven. 2020. "Examining the impact of students’ attendance, sketching, visualization, and tutors experience on students’ performance: a case of building structures course in construction management." Construction Economics and Building. 20 (3), pp. 78-102. https://doi.org/10.5130/AJCEB.v20i3.7056
Competitiveness in the construction industry: A contractor’s perspective on barriers to improving the construction industry performance
Azeem, Moazzam, Ullah, Fahim, Thaheem, Muhammad J. and Qayyum, Siddra. 2020. "Competitiveness in the construction industry: A contractor’s perspective on barriers to improving the construction industry performance." Journal of Construction Engineering, Management & Innovation. 3 (3), pp. 193-219. https://doi.org/10.31462/jcemi.2020.03193219
Empirical evidence of extension of time in construction projects
Shabbar, Haroon, Ullah, Fahim, Ayub, Bilal, Thaheem, Muhammad Jamaluddin and Gabriel, Hamza Farooq. 2017. "Empirical evidence of extension of time in construction projects." Journal of Legal Affairs and Dispute Resolution in Engineering and Construction. 9 (3). https://doi.org/10.1061/(ASCE)LA.1943-4170.0000217
It's all about perceptions: A DEMATEL approach to exploring user perceptions of real estate online platforms
Ullah, Fahim, Sepasgozar, Samad M. E., Thaheem, Muhammad Jamaluddin, Wang, Changxin Cynthia and Imran, Muhammad. 2021. "It's all about perceptions: A DEMATEL approach to exploring user perceptions of real estate online platforms." Ain Shams Engineering Journal. 12 (4), pp. 4297-4317. https://doi.org/10.1016/j.asej.2021.04.023
Addressing disasters in smart cities through UAVs path planning and 5G communications: A systematic review
Qadir, Zakria, Ullah, Fahim, Munawar, Hafiz Suliman and Al-Turjman, Fadi. 2021. "Addressing disasters in smart cities through UAVs path planning and 5G communications: A systematic review." Computer Communications. 168, pp. 114-135. https://doi.org/10.1016/j.comcom.2021.01.003
Managing smart cities through six sigma DMADICV method: A review-based conceptual framework
Qayyum, Siddra, Ullah, Fahim, Al-Turjman, Fadi and Mojtahedi, Mohammad. 2021. "Managing smart cities through six sigma DMADICV method: A review-based conceptual framework." Sustainable Cities and Society. 72, pp. 1-19. https://doi.org/10.1016/j.scs.2021.103022
A review of public-private partnership: critical factors of concession period
Ullah, Fahim, Ayub, Bilal, Qayyum, Siddra and Thaheem, Muhammad Jamaluddin. 2016. "A review of public-private partnership: critical factors of concession period." Journal of Financial Management of Property and Construction. 21 (3), pp. 269-300. https://doi.org/10.1108/JFMPC-02-2016-0011
Economic-efficiency analysis of rawalpindi bypass project: A case study
Mehmood, Yasir, Zahoor, Hafiz and Ullah, Fahim. 2019. "Economic-efficiency analysis of rawalpindi bypass project: A case study." Wu, Peng and Wang, Xiangyu (ed.) Innovative Production and Construction: Transforming Construction through Emerging Technologies. Singapore. World Scientific Publishing. pp. 531-555
Implication of a Construction Labour Tracking System for Measuring Labour Productivity
Shiwrozhan, Sara, Sepasgozar, Samad M. E., Ullah, Fahim and Minhas, Pavneet Singh. 2019. "Implication of a Construction Labour Tracking System for Measuring Labour Productivity." Wu, Peng and Wang, Xiangyu (ed.) Innovative Production and Construction: Transforming Construction through Emerging Technologies. Singapore. World Scientific Publishing. pp. 1-15
A Study of Information Technology Adoption for Real-Estate Management: A System Dynamic Model
Ullah, Fahim and Sepasgozar, Samad M. E.. 2019. "A Study of Information Technology Adoption for Real-Estate Management: A System Dynamic Model." Wu, Peng and Wang, Xiangyu (ed.) Innovative Production and Construction: Transforming Construction through Emerging Technologies. Singapore. World Scientific Publishing. pp. 469-486
Real Estate Stakeholders Technology Acceptance Model (RESTAM): User-focused Big9 Disruptive Technologies for Smart Real Estate Management
Ullah, Fahim, Sepasgozar, Samad and Ali, Tauha Hussain. 2019. "Real Estate Stakeholders Technology Acceptance Model (RESTAM): User-focused Big9 Disruptive Technologies for Smart Real Estate Management." 9th International Civil Engineering Congress (ICEC 2017). Karachi, Pakistan 22 - 23 Dec 2017 Pakistan.
An Investigation of Real Estate Technology Utilization in Technologically Advanced Marketplace
Ullah, Fahim, Sepasgozar, Samad M.E. and Siddiqui, Siddra Qayyum. 2017. "An Investigation of Real Estate Technology Utilization in Technologically Advanced Marketplace." 9th International Civil Engineering Congress (ICEC-2017) . Karachi, Pakistan 22 - 23 Dec 2017 Pakistan. https://doi.org/10.26190/unsworks/26543
Sustainable Smart Cities: Evaluation of Australian Practice
Ullah, Fahim, Thaheem, Muhammad Jamaluddin and Sepasgozar, Samad M.E.. 2016. "Sustainable Smart Cities: Evaluation of Australian Practice." Cheng, Jack C.P., Dawood, Nashwan and Kuang, JS (ed.) 16th International Conference on Construction Applications of Virtual Reality (CONVR 2016). Hong Kong 11 - 13 Dec 2016 Hong Kong.