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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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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author Hamdy Elsharkawi
Emad Elbeltagi
Mohamed S. Eid
Wael Alattyih
Hossam Wefki
author_facet Hamdy Elsharkawi
Emad Elbeltagi
Mohamed S. Eid
Wael Alattyih
Hossam Wefki
author_sort Hamdy Elsharkawi
collection DOAJ
description 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.
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spelling doaj-art-1e5ddab399034e6cb9d09f8f0c6013f22025-01-24T13:26:13ZengMDPI AGBuildings2075-53092025-01-0115221310.3390/buildings15020213Construction Payment Automation Through Scan-to-BIM and Blockchain-Enabled Smart ContractHamdy Elsharkawi0Emad Elbeltagi1Mohamed S. Eid2Wael Alattyih3Hossam Wefki4Civil Engineering Department, Faculty of Engineering, Horus University-Egypt, New Damietta 34517, EgyptDepartment of Civil Engineering, College of Engineering, Qassim University, Buraydah 51452, Saudi ArabiaConstruction and Building Engineering, Arab Academy for Science, Technology, and Maritime Transport, Sheraton Heliopolis, Cairo 12577, EgyptDepartment of Civil Engineering, College of Engineering, Qassim University, Buraydah 51452, Saudi ArabiaCivil Engineering Department, Port Said University, Port Fouad 42523, EgyptTimely 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.https://www.mdpi.com/2075-5309/15/2/213blockchain technologysmart contractsEthereumscan-to-BIMreality capturedigital technologies
spellingShingle Hamdy Elsharkawi
Emad Elbeltagi
Mohamed S. Eid
Wael Alattyih
Hossam Wefki
Construction Payment Automation Through Scan-to-BIM and Blockchain-Enabled Smart Contract
Buildings
blockchain technology
smart contracts
Ethereum
scan-to-BIM
reality capture
digital technologies
title Construction Payment Automation Through Scan-to-BIM and Blockchain-Enabled Smart Contract
title_full Construction Payment Automation Through Scan-to-BIM and Blockchain-Enabled Smart Contract
title_fullStr Construction Payment Automation Through Scan-to-BIM and Blockchain-Enabled Smart Contract
title_full_unstemmed Construction Payment Automation Through Scan-to-BIM and Blockchain-Enabled Smart Contract
title_short Construction Payment Automation Through Scan-to-BIM and Blockchain-Enabled Smart Contract
title_sort construction payment automation through scan to bim and blockchain enabled smart contract
topic blockchain technology
smart contracts
Ethereum
scan-to-BIM
reality capture
digital technologies
url https://www.mdpi.com/2075-5309/15/2/213
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