Unlocking Blockchain in Construction: A Systematic Review of Applications and Barriers

Abstract

The emergence of construction 5.0 marks a shift toward a human-centric approach to digitization within the construction industry. Along with diverse digital innovations related to this shift, blockchain technology offers vast opportunities for the construction industry, including streamlining project management processes, enhancing transparency in payment processes, and improving contract administration. This paper systematically reviews 109 articles using the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) protocol to examine the applications of blockchain in construction, identifying twenty-three topics across eight thematic areas. These areas were further mapped using VOSviewer Online version 1.2.3 to identify interrelationships among the themes and highlight their broad impact. Key features like immutability, security, transparency, and traceability show promise in contract administration, supply chain logistics, facilities management, and sustainability. However, the study also describes the challenges of adopting blockchain in construction, emphasizing the need for enhanced stakeholder education, improved regulatory frameworks, and the creation of industry-specific blockchain platforms to support its acceptance in the construction industry. Emphasizing emerging blockchain applications and the adoption challenges equips researchers and practitioners with the knowledge of these applications and their significance to construction practices.

1. Introduction

Recently, the United States (US) construction industry experienced supply chain disruptions, escalating interest rates, logistical issues, and inflation [1]. Trust and transparency, cost overruns, complex operational management, fragmentation, payment delays, and on-time project completion are some of the other challenges facing the industry [2,3,4,5,6]. The architecture, engineering, and construction (AEC) industry is undergoing a digital transformation, with increasing integration of information technology (IT) solutions into various aspects of project planning, design, construction, operations, and management. According to a study by McKinsey [7], the construction industry is one of the least digitized sectors, with only 1% of its total value added digitized. This lack of digitization has contributed to many of the problems faced by the industry. Ninety percent of mega projects end up costing significantly more than the initial budget [8,9]. There have been advances to tackle these problems, such as the use of cost estimation software, which can provide accurate cost projections based on historical data [10]. Building Information Modeling (BIM) has also significantly improved processes in the construction industry, allowing for the simulation and analysis of a variety of scenarios, identifying potential problems early in the process, and allowing for more accurate scheduling [11]. Quality control software standardizes quality control processes and ensures compliance with regulations and standards, while automated inspection systems provide more accurate and objective inspections; however, challenges still persist [12]. Contract administration in the construction industry presents complexities, such as transparency, compliance, and inefficiencies [13,14]. These challenges have resulted in suboptimal stakeholder collaboration and engagement in the construction process. As a possible solution to these issues, blockchain can transform how construction projects are planned, designed, executed, and maintained [15,16,17].

Blockchain is a type of Distributed Ledger Technology (DLT) that records encrypted data across a network by forming interconnected “blocks” [18]. Blockchain is a subdivision of DLT [19] that expands as additional blocks are consistently added to it [18,19]. The emergence of blockchain technology and its characteristics of immutability, security, traceability, and transparency, along with its use in cryptocurrencies, suggests its adoption could offer viable solutions to these ongoing challenges in the construction industry, resulting in reduced cost and improved efficiency [19].

Overall, blockchain technology has vast potential applications in the construction industry, such as supply chain management [20], project bidding, contract management, and the management of certifications and permits [21]. By creating a secure and transparent record-keeping system, blockchain can enhance the efficiency, transparency, and accountability of construction processes, ultimately leading to better outcomes for all stakeholders involved. Blockchain also has the potential to improve data security, facilitate collaboration, and promote sustainability in construction project management. Regardless of the potential advantages of using blockchain in the construction industry, some challenges are the demand for standardized data formats, collaboration between stakeholders, and education and training [19]. Furthermore, concerns exist regarding the scalability of blockchain technology, particularly in large-scale construction projects [15,19,22,23].

Several studies reviewed blockchain technology applications in the construction industry [24,25,26,27,28,29]. In 2020, Kiu et al. [26] identified six areas of blockchain application and in 2021, Scott et al. [24] identified several more focusing on academic documents (journals, conference proceedings, and books) published only on the Scopus database. Applications of blockchain in relation to smart contracts have also been reviewed in the literature [25], including its potential to mitigate disputes in construction [27]. Furthermore, lifecycle applications of blockchain in buildings [28] and research challenges related to blockchain in construction have been described in the literature [29]. Using a systematic review and thematic analysis of peer-reviewed journal articles, this study aims to identify key application areas of blockchain in the construction industry and describe the technological and operational challenges while providing strategic insights into overcoming these barriers. This roadmap is crucial for practical implementation, as it fills a gap in the literature by addressing both micro-level (e.g., data security, smart contract design) and macro-level (e.g., legal, regulatory) considerations at the same time. This approach allows for a critical examination of how these applications are interrelated, highlighting the synergistic impacts of blockchain across different processes within the construction industry, and emphasizes the importance of recent innovations and evolving opportunities in this rapidly developing field. The rest of the paper is structured as follows: Section 2 presents an overview of blockchain and its characteristics. Section 3 illustrates the research methodology. Section 4 presents the publication trends and thematic mapping, Section 5 describes the key application areas of blockchain in the construction industry, and Section 6 explains the challenges for blockchain adoption in the construction industry. Finally, the summary of findings, study limitations, and opportunities for future research are presented in Section 7.

2. Background on Blockchain Technology

2.1. Overview of Blockchain

Introduced in October 2008, blockchain technology forms the foundation upon which Bitcoin operates, as detailed by Cong and He [30]. This technology includes a decentralized ledger comprising interconnected units known as “blocks”. These blocks are secured through a process known as mining, which transforms pending transactions into a complex mathematical challenge. Participants, referred to as miners, deploy computation power to solve these puzzles, ultimately generating a unique alphanumeric sequence known as a hash for each block [19]. Figure 1 illustrates what is known as the header and block structure of each of these blocks. The header of each block contains a cryptographic hash from the preceding block, the hash of the current block, and a timestamp marking when the block was created. The block body includes transactions and the corresponding digital signature [31]. Data stored in a blockchain are a transactional type of data that requires 1Kb of space or less. Alterations to the data within a block can potentially disrupt the entire blockchain network, as the modification triggers a cascading effect that can halt operations. Upon processing data, each node in the network concurrently confirms and solidifies the information, thereby establishing a fixed, unalterable digital ledger. The rules for appending new blocks and the methodologies used are specific to each blockchain architecture [32]. One distinct benefit of blockchain technology is its facilitation of data and transaction sharing across a peer-to-peer (P2P) network that is both immutable and transparent, significantly bolstering security and clarity [33].

2.2. Advantages of Blockchain

Originally applied predominantly to cryptocurrency and financial transactions [34], blockchain technology is now being explored across various sectors, including entertainment, manufacturing, and healthcare. These industries are harnessing the technology’s robust security and privacy capabilities [35]. Captivating the interest of academics, business leaders, and practitioners globally, blockchain’s utility is expanding, as reflected in recent scholarly discussions [36]. Notably, blockchain technology is becoming more popular in operations and supply chain management, primarily due to its capacity to enhance product traceability across various sectors. Its applications are particularly evident in areas that benefit from increased supply chain transparency and efficiency, such as agriculture and public services. This trend is supported by a growing body of literature, which highlights the diverse applications and benefits of blockchain in these and more fields [35,37,38,39,40,41]. All of this underscores blockchain’s broad utility in improving the reliability and efficiency of transactions and operations across diverse sectors. Figure 2 highlights blockchain’s advantages, as explained in the literature and summarized below [42,43,44,45,46].

2.2.1. Distributed

A blockchain network is fundamentally decentralized, with multiple parties maintaining copies of the ledger. It runs on participants’ computers worldwide. Network participants have access to a copy of the ledger, ensuring full transparency. Additionally, a public ledger provides information about all the network participants and transactions. The advantages of the distributed feature of blockchain are as follows [32]:

• Changes propagate fast and are updated in seconds or minutes in the distributed ledger, making ledger tracking easy. This is because there are no involvements of intermediaries in the blockchain.
• New blocks can only be added to the blockchain after verification of the transactions by other participating nodes.
• Blockchain network does not give any special treatment to any node. Everyone must follow the standard procedures to add a new block to the network.

2.2.2. Immutable

Blockchain is an unalterable and permanent network [47]. The critical advantages of the immutable feature of blockchain are that

• Each node in the blockchain network holds a copy of the digital ledger. No one can add any transaction blocks to the ledger without the approval of the majority of nodes [48].
• The validated records are irreversible; no network user can edit, change, or delete them [49].
• Altering any piece of information on the blockchain is extremely difficult and practically impossible due to its cryptographic and decentralized nature [19].

2.2.3. Decentralized

No central governing authority is responsible for all the decisions. Individual users’ devices are not dependent on a single server to administer all operations. Instead, a group of nodes make and maintain the network (Figure 3).

The advantages of decentralized property of blockchain network include the following.

• The decentralized property of blockchain makes it less prone to failure and more expensive for hackers to attack the network. An attack on a single node does not result in complete network control [50].
• There is no third-party involvement; therefore, there is no added risk.
• Every change made in the network is traceable and concrete.
• Users maintain full autonomy of their properties and are not dependent on third parties to maintain and manage their assets.
• It provides enhanced security.

Blockchain uses two different security measures to protect information from unauthorized parties: encryption and hashing. Both take readable text and convert it into an unreadable format [45]. Encryption works in two ways: encoding and decoding the data, meaning that data can be decrypted and converted back to readable text [51]. Hashing is the process of permanent data conversion into a unique output, which cannot be reversed. Encryption is used to protect the confidentiality of data and to secure the data from the reach of third parties. Hashing, on the other hand, helps preserve the integrity of information [44]. Blockchain-enhanced security offers the following advantages [43,45]:

• Every record in the blockchain is individually encrypted.
• Every piece of information on the blockchain is hashed and has a unique identity on the network.
• All the blocks maintain a unique hash of their own and the hash of the previous block. Modifying the data means changing all the hash IDs, which is almost impossible.
• By creating an encrypted record, the blockchain helps prevent fraud and unauthorized activity.

2.2.4. Increased Speed and Efficiency

Traditional banking systems’ processes are time-consuming and prone to human error. Blockchain offers a faster settlement. Blockchain technology enables faster and more efficient transactions by eliminating the need for paper. It eliminates the need to reconcile multiple ledgers, so clearing and settlement can be much quicker [43].

2.2.5. Greater Auditability

Blockchain audits digital assets stored in the chain at every step on its journey to verify a chain of the block. All transactions on the blockchain network are permanent—no one can manipulate, modify, or delete any of the data that have been stored once the network has validated it. Blockchain serves as a verifiable source for transactions, enabling auditors to examine the entire population of transactions within a given period [52]. Furthermore, blockchain enables real-time auditing, as it records all transaction data on a distributed ledger accessible to all network participants. This important feature of blockchain could be beneficial for system auditors—it provides them with data on the system’s state, enabling them to quickly identify or prevent system failures [53].

2.2.6. Greater Transparency

Blockchain enables information transparency by making data open and transparent, providing an auditable ledger of transactions. Once the network has validated all transactions on the site, no one can attempt to manipulate, modify, or delete any stored data. Changing transactions on the network means every other block in the system would have to be altered [54].

3. Research Methodology

The research framework (Figure 4) depicts the approach taken to address the research objectives. The research approach initially encompassed a comprehensive search across various document types, including journal articles, book chapters, and conference proceedings.

After careful consideration, the focus was narrowed to only include journal articles for consistency and depth of analysis. Four prominent scientific databases, namely Academic Search Complete, Civil Engineering Abstracts, Institute of Electrical and Electronics Engineers (IEEE), and ScienceDirect, were chosen to ensure an extensive and diverse selection of academic literature related to utilizing blockchain technology in the construction sector. A systematic review approach was selected to comprehensively summarize existing evidence on blockchain in construction. This process followed the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) protocol to minimize bias, increase transparency, and provide evidence-based information that can inform decision-making in various contexts. A structured search query was developed to retrieve relevant articles. Keywords and phrases related to the study topics were used in combination with Boolean operators to ensure a broad yet precise search to capture the scientific work associated with a relatively new technology and its potential applications in the construction industry. A sample search string used in the ScienceDirect database includes (blockchain) AND (“construction industry” OR “building industry”) within the Title, Abstract, and Keywords.

Figure 5 illustrates the systematic review process, which led to the final 109 manuscripts that were used for the research analysis. The selected publication years ranged from 2018 to 2022, aligning with recent developments in the field. All review articles were excluded from the thematic analysis to maintain the research’s originality and relevance. Furthermore, the search was intentionally limited to journal articles published in English. A detailed content evaluation was conducted to ensure the selected articles were highly pertinent, explicitly focusing on the extent of blockchain-related references in each article. Consequently, articles lacking substantial references to blockchain technology were excluded from the study’s analysis.

The analysis was conducted in two parts: quantitative and qualitative. The quantitative analysis involved descriptive statistics, such as the publication years, publication outlets, geographic distribution, and initial mapping of the major themes. The qualitative analysis focused on identifying and contextualizing the prevailing topics discussed in the final list of manuscripts. These topics were then grouped into major themes, which were further analyzed to reveal the application opportunities of blockchain in the construction industry.

4. Publication Trends and Thematic Mapping

4.1. Publication Year

The scholarly exploration of blockchain applications in the construction industry has exhibited a remarkable upward trend over the past few years. As illustrated in Figure 6, the number of publications has surged since 2018, highlighting the burgeoning interest in this technological innovation. The increase in research output in only four years underscores the industry’s recognition of the potential of blockchain to address the challenges in the construction industry.

Approximately 53% of all the articles used in this systematic review were published in the journals Automation in Construction, Buildings, Journal of Cleaner Production, IEEE Access, Computers in Industry, Journal of Management in Engineering, and Advanced Engineering Informatics. Automation in Construction was the most popular journal for blockchain-in-construction-related manuscripts, contributing 30 articles and setting the tone for academic discourse in this domain. The concentration of articles within these top journals underscores their role as pivotal platforms for disseminating and exploring blockchain’s transformative potential in the construction industry.

4.2. Geographic Distribution

The exploration of blockchain applications in the construction industry is gaining traction worldwide, as evidenced by the geographical distribution of the journal articles reviewed in this study (Figure 7). The representative country for each article was determined based on the first author’s affiliation. China leads the way with 31 articles, reflecting the country’s substantial attention to blockchain technology and construction innovation. This is followed by Hong Kong, an autonomous territory of China, contributing 16 articles. Together, they account for nearly 42% of the total research output. The US and European countries such as the United Kingdom, as well as South Korea and Türkiye, also emerged as significant contributors, reflecting a growing interest in the West. The diversity of nations in this study, ranging from technological powerhouses to emerging economies, underlines the global interest in blockchain technology. The insights drawn from this distribution provide a nuanced perception of the international landscape of blockchain applications in construction, pointing to well-established centers of research and emerging innovation hubs.

4.3. Mapping of Major Themes

The process of mapping the major themes began with an in-depth topic analysis of all the abstracts. A careful review of the full papers was completed when necessary to identify all relevant topics. Specific quotes from the articles were taken as indicators of relevance and were attributed to their corresponding topics. Following this step, the authors methodically grouped the topics into major themes. A comprehensive re-review of all the articles was then conducted to ensure their relevance and alignment with the identified themes. This iterative and diligent process allowed the authors to present a coherent and substantive categorization of the themes related to blockchain applications in the construction industry, forming the backbone of the systematic review.

Table 1. Themes, topics, and number of articles identified from the literature.

Themes	Topics	Number of Articles
Contract administration	Smart contracts	59
	Dispute resolution	5
Payment processes	Payment systems	24
Procurement and supply chain management	Supply chain management	22
	Procurement	3
	Material scheduling	1
Design and construction process	BIM	24
	Design management/review	14
	Digital twins	7
	Project delivery	3
	Bidding	2
Facilities management	Occupant data and comfort	4
	Maintenance systems	4
Sustainability	Sustainable built environment	14
	Smart metering/energy	7
	Sustainable waste management	3
	Smart cities	6
Data storage and management	Cyber and information security	14
	Document management	10
Project risk and compliance	Safety	13
	Quality management	11
	Project control	5
	Risk management	11

lists the eight themes along with the 23 topics distributed among the themes and specifies the number of articles associated with each topic.

To analyze and map the topics under each theme, VOSviewer was used to construct bibliometric networks based on the co-occurrence of topics among the collected articles. The constructed networks were visualized using VOSviewer’s graphical interface. The visualization includes a cluster map displaying color-coded topic clusters, representing distinct research topics.

Figure 8 visually represents the topics identified under each theme, delineating the connections and intersections within the reviewed literature. Topics shown with the same color are grouped under the same theme, and the line thicknesses show the strength of the association between the topics.

Table A1. Author(s) and Publication Year of Reviewed Articles with Corresponding Topics and Themes.

	Contract Administration		Payment Processes	Procurement & Supply Chain Management			Design and Construction Process					Facilities Management		Sustainability				Data Storage and Management		Project Risk and Compliance
Author(s) and Publication Year	SC	DR	PS	SC	PR	MS	BI	DM	DT	PD	BD	OD	MA	SB	SM	SW	CI	CS	DM	SA	QM	PC	RM
Adel et al. [91]	●																	●				●
Adel et al. [66]	●						●
Aheleroff et al. [147]																				●
Aheleroff et al. [132]									●				●
Ahmadisheykhsarmast and Sonmez [79]	●		●
Alvarez et al. [88]			●				●						●						●			●
Asif et al. [92]	●																●	●
Azmi et al. [110]				●
Bakhshi et al. [82]	●		●				●
Balasubramanian et al. [105]				●										●
Chang et al. [127]	●												●
Cho et al. [114]	●													●
Chong and Diamantopoulos [80]	●		●				●
Ciotta et al. [148]	●
Cocco et al. [93]	●						●					●						●			●
Coskun-Setirek and Tanrikulu [149]	●
Dakhli et al. [137]	●							●		●
Das et al. [85]			●
Das et al. [60]	●							●											●
de Fátima Castro et al. [124]															●
de Villiers et al. [107]	●			●										●
Deep et al. [150]																							●
Eisele et al. [122]	●														●
Elghaish et al. [136]	●		●							●													●
Elghaish et al. [76]			●
Gough et al. [123]	●														●
Gurgun and Koc [55]	●	●																					●
Gurgun et al. [71]			●	●
Hamledari and Fischer [84]	●		●	●
Hamledari and Fischer [73]	●		●				●														●
Hamledari and Fischer [72]	●		●	●
Hamledari and Fischer [87]	●	●	●
Helo and Shamsuzzoha [103]				●
Huang et al. [74]			●				●												●
Hunhevicz et al. [83]	●		●						●
Ibrahim et al. [89]								●											●
Ibrahim et al. [77]	●		●
Ismail and Buyya [151]																	●
Jeoung et al. [125]												●			●
Jeyabharathi et al. [120]																●	●
Jiang and Zheng [121]														●
Jiang et al. [130]									●
Khan et al. [152]																				●
Khan et al. [153]																				●
Kim et al. [90]		●																	●
Kim et al. [99]					●						●											●
Kochovski and Stankovski [154]	●																			●	●
Kochovski and Stankovski [155]																				●
Lee et al. [56]	●		●	●					●
Li et al. [156]	●			●			●												●
Li et al. [102]				●	●						●										●
Li et al. [104]				●			●	●											●
Li et al. [94]																		●	●
Liu et al. [113]	●						●							●		●
Liu et al. [157]												●								●	●
Lu et al. [109]	●			●
Lu et al. [142]	●																			●	●	●
Lu et al. [86]			●
Marsal-Llacuna [158]																	●
Mastos et al. [101]				●										●	●	●
McNamara and Sepasgozar [62]	●			●																			●
Moretti et al. [126]	●						●					●	●					●
Nawari and Ravindran [141]	●						●	●
Ni et al. [100]	●			●		●	●	●
Osunsanmi et al. [63]	●
Pan et al. [95]																		●		●
Pradeep et al. [134]	●	●					●	●											●
Qian and Papadonikolaki [108]				●																			●
Rodrigo et al. [118]				●										●
Sadeghi et al. [116]														●
Saygili et al. [78]	●	●	●
Sheng et al. [69]	●																				●
Shojaei et al. [112]	●													●	●		●
Shojaei et al. [111]	●													●
Shu et al. [59]	●													●
Sigalov et al. [58]	●		●				●
Song et al. [117]														●	●
Sonmez et al. [159]	●		●				●
Srivastava et al. [81]	●		●				●							●
Sun and Zhang [119]																	●
Tao et al. [139]	●						●	●										●	●				●
Tao et al. [96]							●	●										●
Teisserenc and Sepasgozar [68]	●						●		●
Turk et al. [97]								●										●					●
van Groesen and Pauwels [61]	●		●	●																		●	●
Wang et al. [138]							●	●
Wang et al. [160]	●			●
Wu et al. [143]	●																			●
Wu et al. [161]	●																				●
Wu et al. [106]				●														●			●
Wu et al. [129]							●
Wu et al. [131]									●												●
Xiong et al. [75]	●		●	●
Xiong et al. [64]	●																			●			●
Xu et al. [98]																		●		●			●
Xue and Lu [128]	●						●
Xue et al. [133]									●
Yang et al. [162]	●																			●			●
Yang et al. [70]	●		●	●	●			●													●
Zhang et al. [67]	●																	●
Zhang et al. [65]	●																	●		●
Zhang et al. [135]										●
Zheng et al. [57]	●						●	●										●
Zhong et al. [115]	●													●
Zhu et al. [140]								●

● Represents blockchain topic identified in manuscript.

in Appendix A contains further details of the themes identified in each of the manuscripts included in this study.

5. Applications of Blockchain in the Construction Industry

5.1. Contract Administration

Several studies have examined the potential of blockchain use in smart contracts, identified challenges, and proposed solutions. Gurgun and Koc [55] found that while fully automated smart contracts may not be practical, improvements to semi-automated smart contract drafting can enhance how contracts are administered. Lee et al. [56] suggested using blockchain to streamline contract processes, particularly in off-site product supply chains. Zheng et al. [57] introduced a blockchain-based model for auditing and provenance in BIM modifications, highlighting the use of smart contracts to streamline data sharing and auditing processes. On a similar note, Sigalov et al. [58] explored the implementation of smart contracts to automate payment processes in construction projects, ensuring transparency and traceability. The study emphasized the potential benefits of integrating BIM approaches with blockchain-supported smart contracts, particularly in automating certain aspects of traditional construction contracts. This combination not only enhances efficiency but also improves the accuracy and reliability of contractual obligations in the construction sector.

Regarding project management, Shu et al. [59] introduced a blockchain-based trading system that leverages smart contracts to control carbon emissions in the construction industry. Similarly, the work by Das et al. [60] highlighted how blockchain technology enhances data integrity in document management within construction settings. The use of smart contracts was noted to significantly improve both efficiency and reliability.

Research by van Groesen and Pauwels [61] demonstrated how tracking assets can be combined with blockchain for compliance checking, resulting in semi-automated compliance tracking and an immutable record of transactions. Similarly, McNamara and Sepasgozar [62] suggested using blockchain technology to provide a concise central auditable ledger as a single source of truth, with metadata assigned to transactions and documents to provide a more robust database of transactions. In the broader context of construction 4.0 technologies, Osunsanmi et al. [63] evaluated stakeholders’ willingness to adopt such technologies, including blockchain-based smart contracts. Meanwhile, Xiong et al. [64] focused on the security aspects, proposing a blockchain-based edge collaborative detection scheme for constructing the Internet of Things (IoT).

In the area of dispute resolution, Zhang et al. [65] present a construction site information management system that leverages blockchain and smart contracts. This system enables the seamless deployment of new smart contracts without service interruption, thus supporting the expansion of scenario services. Adel et al. [66] introduce an innovative, customizable, decentralized artificial intelligence (AI) system that integrates blockchain as a computing-oriented technology. This solution addresses the distribution challenges faced by AI applications, thereby facilitating their widespread adoption. Zhang et al. [67] present a certificateless smart home network authentication scheme leveraging blockchain. This scheme achieves mutual authentication among users, intelligent terminals (Its), and intelligent gateways (Igs). Teisserenc and Sepasgozar [68] introduced a software architecture for building smart contracts within blockchain-based digital twin (BCDT) decentralized applications (dApps) throughout the lifecycle of projects in construction industry 4.0. Sheng et al. [69] created a blockchain-based system called Product Organization Process (POP) qualityChain to manage quality information. This system decentralizes quality information management, ensuring consistency and security throughout. These studies show the promising capabilities of blockchain technology in resolving disputes.

Overall, these studies demonstrate the potential of blockchain and smart contracts to improve efficiency, transparency, and security in construction, particularly when combined with existing technologies like BIM and IoT. These enhancements illustrate how blockchain, coupled with smart contracts, can pave the way for a more automated and consistent construction industry, ultimately leading to fewer disputes and improved project outcomes.

5.2. Payment Processes

Blockchain has been used to improve the traceability of financial transactions involving various project stakeholders for construction supply chain processes [56,70]. However, some barriers exist, including a “lack of knowledge about cryptocurrency” [71]. Blockchain can also offer a granular view of payments, allowing for the analysis of financial performance and improving productivity [72]. This is particularly important in tracking subcontractors’ performance and can be applicable in integrated project delivery methods to share profits and rewards. Additionally, blockchain improves business performance through improved visibility [73]. One of the key features of blockchain is secure transactions, which is critical to the construction industry, and solutions to ensure the security of payment systems have been proposed [74,75,76]. Within construction contracts, blockchain-enabled smart contracts can ensure secure financial transactions and reduce the need for human interference, saving time and cost [77]. A hybrid decentralized blockchain system was implemented to resolve construction disputes [78]. Ahmadisheykhsarmast Sonmez [79] also developed a decentralized blockchain smart contract payment security system to reduce payment issues.

In another study, blockchain was integrated with smart sensors, BIM, and smart contracts to address payment security concerns in construction [80]. Other researchers also explored the integration of BIM, smart contracts, and blockchain [79,81,82]. Sigalov et al. [58] developed an automated billing system using BIM and blockchain-based smart contracts. Not only has blockchain been used with BIM, but digital twins have also been combined with blockchain-based smart contracts for performance-based digital payment systems [83]. Hamledari and Fischer [84] combined blockchain-enabled smart contracts with robotic reality-capture technologies for autonomous payments. A distributed blockchain-based framework was also developed for interim payments based on the construction contract conditions [85].

Government projects can also benefit from blockchain-based payment systems, providing immutability, traceability, and transparency while allowing for decentralization at the appropriate level to enable information sharing [86]. Crypto assets can potentially improve the precision and indivisibility of the linkage between monetary and product transactions [87]. Some other industry applications of blockchain include its use for automated payment systems using smart contracts to enable the independent and trustworthy conditioning of cash flow on product flow for construction progress monitoring using unmanned aerial vehicle-based progress monitoring [72]. Blockchain-based Distributed Ledger Technology (DLT) has been used to address latency and fees in an airport pavement management system [88].

5.3. Data Storage and Management

The application of blockchain technology in document management within the construction industry is a significant area of interest in contemporary research. Alvarez et al. [88] suggested using a connected and potentially encrypted network of dynamic objects, all linked through a DLT database, to track the access of these objects. Das et al. [60] proposed a blockchain-based integrated document management framework that facilitates data integrity in document management for construction applications. They employ irreversible and irrevocable approval workflow logic, irreversible recording of document changes, and document version history integrity through a blockchain-based data structure. Leveraging blockchain technology can lead to achieving distributed data storage in large BIM design engineering [74].

These advancements in document management are further elaborated by Ibrahim et al. [89], who recommend encouraging construction consultants to digitize building data via blockchain technology to mitigate data storage issues and enhance safety management. Kim et al. [90] propose a system capable of generating, transferring, and synchronizing blocks via email communication during events, providing document management features such as search, history tracking, automatic extraction of related documents, and authenticity verification.

In the realm of cyber and information security, a blockchain-based chatbot for tracking the progress of work in construction projects using a scalable blockchain network has been explored in a recent study [91]. Asif et al. [92] presented a blockchain-based authentication and trust management mechanism for smart cities. Cocco et al. [93] proposed a self-sovereign identity (SSI)-based system that can support building digitalization, guaranteeing compliance with standards and other technical regulations. Li et al. [94] developed a Two-layer Adaptive Blockchain-based Supervision (TABS) model that enhances privacy and reduces storage costs at an acceptable latency level. Pan et al. [95] utilized deep learning technologies combined with blockchain to manage the security information of construction equipment.

As previously discussed under the theme of data storage and management, Tao et al. [96] also addressed the need for access control and confidentiality through a confidentiality-minded framework (CMF), which regulates access to sensitive BIM data in the blockchain ledger. They developed an access control model in the CMF to prevent unauthorized access to sensitive BIM data stored within a blockchain ledger. Similarly, Turk et al. [97] discussed digitally signing information and creating logs and ledgers such as blockchain to combat lying. Xu et al. [98] developed a blockchain-enabled privacy-protecting occupational safety and health (P-OSH) framework to balance privacy and safety. Zhang et al. [67] proposed a certificateless authentication scheme based on blockchain in the smart home network. Zhang et al. [65] discussed construction site information decentralized management using blockchain and smart contracts.

5.4. Procurement and Supply Chain Management

Efficient procurement, logistics, and supply chain management processes are critical to the success of construction projects. Procurement is one of the major application areas of blockchain technologies in the construction industry [99]. Although the review did not yield many results in procurement, some overlays can be observed with supply chain management applications. Not only is blockchain used in procurement, but it also finds applications in material scheduling and tracking [100,101]. Blockchain-based procurement bidding systems can be used to ensure the quality of suppliers’ materials while also providing the confidentiality needed in the bidding process [70,102].

Blockchain can be used for real-time logistics and supply chain management [103,104], tracking counterfeit and illegal goods [105], providing security for materials and monitoring tampering [106], and reducing waste [107]. Smart contracts can be combined with blockchain to manage the production and shipping of off-site products [56] and improve trust and transparency within the supply chain [71,108]. smart construction-object-enabled blockchain oracles framework was developed and validated using four smart contracts focusing on off-site logistics and on-site assembly, and accurate data was retrieved in the process for supply chain management [109]. In modular construction, blockchain offers enhanced supply chain management. A study by Li et al. [104] explored a blockchain-enabled IoT-BIM platform for supply chain management to be used in modular construction and observed that the system could save storage costs and provide acceptable throughput and latency. Supply chain resilience can also be improved through blockchain technologies [110]. The chain of custody of materials can be tracked through blockchain, supporting auditability in case disputes arise [62].

5.5. Sustainable Built Environment

The role of emerging technologies, including blockchain and AI, in tackling climate change and advancing sustainable development has been discussed in the literature [81]. Balasubramanian et al. [105] explored the triple bottom-line impacts of construction 4.0 technologies, including blockchain. They proposed a comprehensive multi-dimensional construction 4.0 sustainability framework using a case study of the United Arab Emirates (UAE) construction sector. They found that the positive impacts of construction 4.0 technologies outweigh the negative impacts, and blockchain, for instance, is already being implemented in UAE as a result of government support; they are used in the land development department to record sales and lease transactions. Blockchain is also beneficial for sustainability assessment models as it provides the information needed to improve sustainability-related decision-making at various stages of the life cycle of a built asset [111].

Blockchain can enable the tracking of materials and energy to determine the recyclability and usability of materials for the built environment [112]. A construction waste information management system was developed using blockchain to evaluate construction waste recyclability through a unified trustworthy credit system to associate responsibility and ownership of different stakeholders [113]. The study also addresses the sustainability of construction waste management by ensuring information exchange at the user, application, service, and infrastructure data levels.

Cho et al. [114] used a blockchain network to manage air quality at a construction site using a fine dust management system by designing a chaincode, dApp, and network architecture. Also, blockchain has been used for environmental monitoring and control of carbon emissions [59] and other pollutants [115] in the construction field. They developed a proof of concept that confirmed that blockchain can reliably provide accurate environmental data and support continuous monitoring on construction sites. Liu et al. [113] also developed a blockchain-enhanced construction waste information management conceptual framework (BeCW) to optimize construction waste management processes. They included a WasteChain that enables the assessment of the recyclability of construction waste.

To tackle social sustainability issues focusing on supply chain issues and procurement, Sadeghi et al. [116] explored DLT implementation to promote sustainable construction. They identified infrastructure data management, advanced applications and archetypes, customer demand, preferences, and taxation and reporting as critical DLT implementation needs. Mastos et al. [101] also designed a blockchain application for asset tracking in a supply chain to minimize waste and promote a circular economy.

Integrating blockchain smart contracts and IoT tracking can increase construction businesses’ productivity while enabling them to reach the United Nations’ Sustainable Development Goals (UNSDGs) [107]. The study also revealed that beneficial information could be gathered to improve performance toward meeting larger sustainability goals with the improved responsiveness and flexibility of just-in-time production systems and enhanced security using private/permissioned blockchains.

Focusing on energy systems, blockchain can support distributed energy generation, load flexibility, and demand response through a transactive energy trading system, preventing manipulation and ensuring fairness among the market players [117]. Using the blockchain-based transactive energy trading system proposed by Song et al. [117], transactions can be automatically executed, and it promotes transparency and privacy. Blockchain could improve estimating the embodied carbon in construction supply chains by providing a reliable and trustworthy estimation, contributing to the goal of achieving zero-carbon buildings [118].

In relation to smart cities, blockchain has been combined with big data technologies to promote smart and connected communities [112,119]. Asif et al. [92] developed a blockchain-based security mechanism to provide secure and authorized access to smart city resources such as smart meters, surveillance cameras, and security cameras. Blockchain was used in smart city applications for sustainable waste management tracking, enabling the charging of penalties or providing financial rewards to waste management services based on their performance [120]. Jiang and Zheng [121] explored green building industry innovation ecology based on blockchain smart city. The system ensures its distributed, tamper-resistant, and non-repudiable features through four key mechanisms: P2P network communication, blockchain ledger storage, password management, and consensus mechanisms [121]. These mechanisms collectively render the blockchain system both trustworthy and transparent.

In addition to material traceability, blockchain can produce full energy traceability for the built environment. Shojaei et al. [112] explored a case study involving the creation of a heating, ventilation, and air conditioning (HVAC) unit from bare materials for assembly, installation, operation in a building, and salvaging. They used a circular economy blockchain to track the energy used for production, carbon footprint, and resource production. They found that blockchain is feasible for tracking material traceability information, including energy-related information. Blockchain also finds applications in power distribution systems such as transactive energy systems [117,122,123] and for developing new energy markets [124].

5.6. Facilities Management

The integration of blockchain technology in facilities management, specifically in the context of occupant data and comfort, has been increasingly explored in recent years. Jeoung et al. [125] state that a blockchain-based IoT system can improve occupant satisfaction with indoor environmental quality (IEQ) by providing personalized control. This suggests that blockchain technology can enable more precise control over IEQ, thereby enhancing the overall comfort and satisfaction of the occupants. Another study implies the utility of blockchain in managing occupant data to optimize building services [126].

The application of blockchain in maintenance systems within facilities management has also been explored in some studies. Alvarez et al. [88] point out that digital technologies such as BIM, IoT, and blockchain serve as enabling technologies to aid asset and maintenance management. This suggests that blockchain technology can be crucial in implementing effective maintenance strategies. Moreover, Chang et al. [127] note that blockchain use in maintenance services is still in its infancy, indicating a significant potential for future explorations of blockchain’s utility in maintenance systems.

In the context of the digitization of the building sector, as it relates to managing facilities, the SSI-based system described earlier, which integrates blockchain technology with BIM, SSI, and IoT devices, leverages blockchain to enhance information management in construction, facilitating the verification and validation of certified information, improving data provenance and sharing, and increasing process efficiency within the construction industry [93]. Blockchain technology ensures data integrity and fosters collaboration among various stakeholders by serving as a transparent and immutable ledger. This integrated approach contributes to the digitization of the building sector and supports facilities management by enabling accurate, transparent, and effective management of building information, aligning with broader goals of energy efficiency, sustainability, and occupant well-being.

5.7. Design and Construction Processes

Regarding design and construction processes, blockchain provides several benefits and has been combined with BIM to improve transparency and traceability of information, allowing for improved multi-party collaboration [21,100]. With the integration of IoT technologies and improved digitization, a lot of data are collected during building design, construction, and operations. In light of this, Xue and Lu [128] explored the reduction in information redundancy in BIM and blockchain integration. Also, to support modular construction, a blockchain-enabled IoT-BIM platform was developed for offsite production management [129].

Concerning digital twin applications of blockchain, Lee et al. [56] developed an integrated digital twin and blockchain framework to enable traceable data communication using BIM and IoT sensors, where blockchain was used for authentication to ensure the confidence of data transactions. Sample applications of blockchain with digital twins include modular integrated construction to improve cyber–physical workflows [130] and on-site modular construction to improve the accuracy of information sharing [131]. Other benefits of integrating digital twins with blockchain have been enumerated in the literature, including providing transparency and data privacy [83,132], collaboration and data sharing [68], and preserving the semantics of digital twin cities [133].

AI models have been decentralized using blockchain technology to audit and validate the decision-making processes [66]. Using BIM in collaborative projects among parties without contractual relationships can introduce disputes and claims since these are often used with other third-party software, compromising the data. Pradeep et al. [134] explored the use of blockchain technology to record and track records of key information exchange transactions in BIM models, enabling improved auditability and supporting design management and review. Li et al. [104] used blockchain BIM to enhance information and semantics interoperability while extracting meaningful inferences. Integrating BIM with blockchain can enable information sharing between all parties that have access to the network. Tao et al. [96] discussed the need to provide access control and maintain the confidentiality of information when needed through a CMF, which controls access to sensitive BIM data in the blockchain ledger. Zheng et al. [57] proposed a novel system to address information security in mobile cloud architectures. The proposed system enables audits to track historical modification of shared data, preventing tampering with the data and enabling authentication. Blockchain also enables the irreversible recording of document changes [60].

Blockchain also finds applications in project delivery, including infrastructure financing [135], facilitating integrated project delivery (IPD) adoption [136], supporting smart contracts, and ensuring that agreements are successfully executed by reducing the need for intermediaries hired to build trust [137].

In design management and review, blockchain has been adopted to protect the copyright of designers by storing and securing design information [89,138,139]. It also promotes transparency during the design and construction phases of projects and enables the tracking of document changes [140]. A case study of a cladding system design indicated that the company was more inclined toward a private blockchain system, given its transparency, immutability, and traceability [70]. There was more confidence in the quality of the product. Nawari and Ravindran [141] explored the potential of blockchain to automate construction design review processes and suggested the use of Hyperledger Fabric for code-checking compliance during the BIM design reviews owing to characteristics such as its flexibility, security, and modular architecture.

5.8. Project Risk and Compliance

In the area of risk management, blockchain technology offers promising opportunities. For example, van Groesen and Pauwels [61] examined the use of blockchain technology for compliance checking in the construction industry. They proposed a combination of asset tracking and blockchain technology to address issues such as transparency, costly activities, and conflicts. They constructed a framework of interconnected applications and an operational workflow, leading to semi-automated compliance tracking and an immutable record of transactions. In a similar vein, the SSI-based system supports building digitalization processes while ensuring compliance with standards and technical regulations [93]. The P-OSH deployment framework developed by Xu et al. [98], previously discussed within the context of the data storage and management theme, is also pertinent to construction project risk management. Specifically, it serves to balance concerns related to privacy with those of occupational safety and health risks.

Concerning safety, Lu et al. [142] proposed using blockchain technology to enhance the inspection process in the onsite assembly of modular construction. This application has been particularly relevant in the COVID-19 pandemic, where the remote and accurate verification of safety compliance have been necessary. They demonstrated that a prototype system leveraging blockchain’s consensus mechanism allows project participants to endorse information about the modules and their assembly, improving the accuracy and authenticity of shared information. This process enhances safety by ensuring all project participants have access to the same validated information, promoting transparency and accountability in the overall compliance and the associated safety practices. Similarly, Wu et al. [143] also demonstrated how blockchain can enhance the efficiency of equipment supervision, decision-making, and accident tracking in equipment security management.

Regarding project control, blockchain technology has been proven to significantly drive innovation in many industries, including construction [99]. The significant advantages of using blockchain technology include reducing transaction costs, preventing data forgery and alteration, and increasing flexibility. The authors found that “Project Cost/Change Management”, “Contract Bidding and Formation”, and “Procurement Evaluation” presented most of the opportunities for blockchain applications with high applicability and impact. In addition, McNamara and Sepasgozar [62] developed a theoretical framework for intelligent contract acceptance, aiming to predict the acceptance of intelligent contracts (iContracts) in the construction industry. Through integrating data from emerging cyber-physical systems and industry 4.0, their research underscores the potential of iContracts to streamline the construction contract environment. Specifically, the applications, facilitated by blockchain technology, offer a pathway to enhanced risk management by reducing ambiguities and inconsistencies often associated with manual contract administration. This digital approach to contracts may also contribute to more efficient cost and schedule control by automating contract execution without human intervention, thereby reducing opportunities for adversarial actions. Moreover, the decentralized nature of blockchain-based iContracts aligns with a trustless system that could improve compliance with standards and regulations by making third-party interventions redundant.

In the area of quality management, a vital component of risk management in construction projects, blockchain technology is emerging as a significant tool. Beginning with the foundational work by Sheng et al. [69], a blockchain-based framework known as the “Product Organization Process (POP) quality Chain” was proposed, tailored explicitly for managing quality information in construction. This innovative framework incorporates various blockchain solutions integral to construction quality management, such as a POP-model-based structure for organizing quality information, a consensus mechanism to ensure data integrity, and smart contracts to process quality-related information efficiently. Additionally, the framework includes authorization sequences and execution processes, enhancing the robustness and efficiency of quality management within the construction industry.

Building on this foundation, Hamledari and Fischer [84] expanded the application of blockchain technology to manage product and process quality information in the construction industry, offering an immutable record of transactions. They demonstrated that their blockchain-based solution could decentralize the management of quality information, thereby ensuring consistent and secure practices.

Most recently, Wu et al. [131] contributed further insights, showing that a prototype system could improve the accuracy of information sharing in the onsite assembly of modular construction (OAMC). By enabling project participants to validate information regarding the modules and their assembly via the blockchain’s consensus mechanism, this approach underscores blockchain applications’ continual evolution and refinement in enhancing quality management, thereby supporting risk management in construction projects.

6. Adoption Considerations and Challenges

Blockchain has the potential to transform and advance the construction industry, but the road to full-scale adoption is complex, marked by various challenges and strategic considerations. Navigating the landscape of integrating blockchain into construction practices requires understanding these nuances.

The complex interplay of construction industry stakeholders has highlighted the requirement for trust, cooperation, and collaboration, including the human-centric approach to digitization, as emphasized in construction 5.0. The introduction of blockchain promises to address some of these issues but also presents its own challenges. One such challenge lies in technology design, which includes the intricacies of private key management and the risks associated with smart contracts [144]. Further, as the technology is still maturing, data security and integrity concerns are paramount [144]. The global construction landscape, especially in regions like the Middle East, faces challenges like payment delays, cancellations, and shifts in project dynamics, which complicates the adoption process [110]. Industry preparedness is also a critical challenge hindering blockchain adoption in construction [28,29].

Beyond technical aspects, the industry confronts challenges related to its organizational structure. Traditional mindsets and legacy systems can sometimes act as barriers to the disruptive capabilities of blockchain technology [28,137,145]. These challenges are not only in a specific geographical area; for instance, a study focusing on the Chinese context underscored the importance of standards and processes, emphasizing the significance of considering the external and internal environments for blockchain applications [146].

The application of cryptocurrencies within supply chain management in construction faces specific barriers [29]. Gurgun et al. [71] mentioned challenges including poor technical knowledge about cryptocurrencies, volatile market valuations, limited market opportunities, security vulnerabilities, requirements for personal data disclosure, uncertainties about permanent use, and government regulatory actions restricting cryptocurrency use, which can present significant obstacles [28]. Liu et al. [29] also described the lack of industry readiness and assessment methods and the lack of a quantitative approach to quantify the cost and benefits of blockchain in construction as key barriers. The results of this study can guide construction professionals and policymakers in understanding the pros and cons of cryptocurrencies and developing strategies that address concerns in the building construction industry [71]. Xu et al. [145] mentioned inadequate infrastructure to support IT and uncertainties relating to legal and regulatory factors as critical barriers to blockchain adoption in China’s AEC industry.

Recent findings by Sadeghi et al. [116] also point to the significance of infrastructure for data management, the need for advanced applications and archetypes, and the importance of understanding customers’ demands, interests, and tendencies. Taxation and reporting considerations also emerge as pivotal in the adoption journey. Addressing these high-ranked challenges is critical for achieving social sustainability, especially in areas like supply chain management, transparency, and fair operations.

Moreover, while blockchain’s potential in construction is evident, its adoption is influenced by multiple determinants. Factors like perceived benefits, behavioral control, and the multi-stakeholder nature of construction projects are critical to an individual’s disposition to blockchain [144]. The consideration of dependencies between elements and the industry’s informatization level further underscores the intricate nature of blockchain use in construction [146].

In a nutshell, the factors likely to impact the adoption of blockchain technology in the construction industry include enhanced stakeholder education, improved regulatory frameworks, and the development of industry-specific blockchain platforms. Education and awareness efforts that demystify blockchain technology and illustrate its practical benefits can empower stakeholders across all levels of the construction process, fostering a more receptive attitude towards its adoption. Additionally, the establishment of clear, supportive regulatory frameworks can address legal and security concerns, providing a solid foundation for integrating blockchain into existing operational structures. The creation of blockchain platforms tailored to the construction industry’s unique needs, emphasizing usability, scalability, proper data storage, and interoperability, can facilitate smoother transitions from traditional to blockchain-based systems [29]. These platforms should aim to streamline complex processes, such as contract management and supply chain operations, making blockchain technology a more attractive option for industry stakeholders. Collaborative initiatives involving public and private sector partnerships can further accelerate the development and adoption of such platforms, ensuring they are robust, secure, and capable of delivering tangible benefits to the construction industry.

7. Conclusions

7.1. Summary of Findings

Considering the challenges faced in the construction industry, including schedule delays, cost overruns, and quality control issues, blockchain can potentially revolutionize project planning, design, execution, and long-term maintenance, thereby improving transparency, efficiency, and collaboration in the construction process. Using a systematic review and thematic analysis, this study identified key application areas of blockchain in the construction industry and described the technological and operational challenges while providing strategic insights into overcoming these challenges. This study contributes to the literature by exploring and addressing both micro-level (e.g., data security, smart contract design) and macro-level (e.g., legal, regulatory) considerations for the use of blockchain in the construction industry.

A systematic review of 109 journal articles published between 2018 and 2022 pinpointed several key findings. There was an upward trend in the number of journal articles on blockchain in construction published annually within this period. China, Hong Kong, and the US produced the highest number of journal articles based on the affiliation of the first author. The most predominant topic in relation to the application of blockchain was its use for smart contracts. Some other applications of blockchain in construction include procurement and supply chain management, design and construction processes, facilities management, sustainability, contract administration, data storage and management, payment processes, and project risk and compliance. Predominantly, these applications center around integrating smart contracts with BIM and supply chain and asset management. By harnessing blockchain’s inherent characteristics of security, immutability, transparency, auditability, traceability, and trustworthiness, the construction industry can advance accountability, foster trust among stakeholders, and enhance quality, safety, and sustainability.

This study not only shed light on the more recent core application domains of blockchain within the construction sector but also delved into the challenges preventing the adoption of this technology, including resistance to change, limited technical expertise, and legal and regulatory uncertainties. These challenges can be overcome by training and education, creation of policies and regulatory frameworks, and the development of industry standard.

7.2. Limitations and Future Research

While the systematic review primarily focused on 109 academic peer-reviewed journals in the English language from Elsevier ScienceDirect, IEEE, Civil Engineering Abstracts, and Academic Search Complete published between 2018 and 2022, future research should expand on this effort. The inclusion of non-English articles and additional databases, such as Scopus and Web of Science, can capture more comprehensive research on this topic. Additionally, gray literature should be considered to capture recent changes in this rapidly evolving field.

Future research endeavors should explore strategies to overcome blockchain adoption challenges and provide actionable recommendations for further incentivizing blockchain adoption within the construction industry. Additionally, investigating a broader array of practical use cases can increase awareness of the tangible benefits of blockchain technology in construction applications.