A Blockchain-Based System for Managing Payments in The Construction Supply Chain

Abstract

The global construction sector, employing 7% of the worldwide workforce and contributing 13% to global gross domestic product (GDP), is among the largest industries. It encompasses various stakeholders, including owners, contractors, subcontractors, and suppliers. However, the management of payments within this supply chain encounters numerous hurdles, such as delays, rework, errors, late payments, and inadequate supervision and financial oversight. This paper presents a blockchain-based payment handling system for construction supply chains. The system leverages blockchain's features of data transparency and sharing, and decentralization and immutability to provide a secure and trusted tool for handling payments. The system enables tracking work progress, the payment of installments for completed work, and provides a facility for resolving disputes between buyers and sellers on-chain. The system ensures smooth execution and commitments by all parties with blockchain data transparency, escrow payments and independent risk assessment. The paper provides a detailed description of the system design and results of function tests.

Keywords

• Blockchain
• Construction industry
• Payments
• Supply chain
• Ethereum

References

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