Construction Payment Automation Through Scan-to-BIM and Blockchain-Enabled Smart Contract

Timely approvals and payments to the project participants are crucial for successful completion of construction projects. However, the construction industry faces persistent delays and non-payments to contractors. Despite the desirable benefits of automated payments and enhanced access to digitized...

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Bibliographic Details
Main Authors: Hamdy Elsharkawi, Emad Elbeltagi, Mohamed S. Eid, Wael Alattyih, Hossam Wefki
Format: Article
Language:English
Published: MDPI AG 2025-01-01
Series:Buildings
Subjects:
Online Access:https://www.mdpi.com/2075-5309/15/2/213
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Summary:Timely approvals and payments to the project participants are crucial for successful completion of construction projects. However, the construction industry faces persistent delays and non-payments to contractors. Despite the desirable benefits of automated payments and enhanced access to digitized data progress, most payment applications rely on centralized control mechanisms; inefficient procedures; and documentation that takes time to prepare, review, and approve. As such, there is a need for a reliable payment automation system that guarantees timely execution of payments upon the detection of completed works. Therefore, this study used a cutting-edge approach to automate construction payments by integrating blockchain-enabled smart contracts and scan-to-Building Information Modeling (BIM). In this approach, scan-to-BIM provides accurate, real-time building progress data, which serve as the source of verifiable off-chain data. A chain-link is then used to securely relay these data to the blockchain system. Blockchain-enabled smart contracts automate the execution of payments upon meeting contract conditions. The proposed approach was implemented on a real case study project. The actual site scan was captured using a photogrammetry 360° camera, which uses a combination of structured light and infrared depth sensing technology to capture 3D data and create detailed 3D models of spaces. This study leveraged accurate, real-time building progress data to automate payments using blockchain-enabled smart contracts upon work completion, thus reducing payment disputes by tying payments to verifiable construction progress, leading to faster release of payments. The findings show that this approach provides a transparent basis for payment, enhancing trust and allowing precise project progress tracking.
ISSN:2075-5309