POTENTIAL IMPACTS OF BLOCKCHAIN TECHNOLOGY IMPLEMENTATION ON CONSTRUCTION CONTRACT MANAGEMENT IN SRI LANKA

Abstract

The construction contract is the mainstay for the ascendancy of the construction project requiring proper contract management. The Sri Lankan construction industry has many complications associated with contract management. Blockchain, as a decentralised transaction and data management technology, can potentially address the issues related to contract management amidst the impediments to effective implementation. However, blockchain technology adaptation in the Sri Lankan construction industry lacks evidence, even though other sectors, for example, banking and agriculture, are with the initial implementation. Hence, this research aimed to identify the potential impacts of implementing blockchain technology in construction contract management in Sri Lanka. A literature review was conducted to identify the concept of blockchain technology, its applications and its benefits. A qualitative survey strategy was adopted, and data were collected via semi-structured interviews in two phases; Phase I with ICT and finance industry experts and Phase II with construction contract experts. Samples were selected purposively through snowball sampling. The data analysis revealed that the awareness and use of blockchain technology in Sri Lanka are relatively low. However, Sri Lanka has the potential to adopt Blockchain in different fields, depending on their capabilities. Furthermore, the study found associated positive impacts of Blockchain, e.g., avoiding complex procedures, providing transparency, no ambiguities, no human errors and reducing political influence to mitigate contract management issues. Besides, Blockchain may negatively impact due to, e.g., high initial and maintenance costs, lack of knowledge and expertise, unavailability of rules and regulations, and reluctance to change those need mitigations.