Risk factors affecting blockchain-based smart contract use in architecture, engineering, and construction industry

Abstract

Management of traditional construction contracts that is frequently preferred in the architecture, engineering, and construction (AEC) industries are affected by many factors due to the complexity and large number of contract documents. With the introduction of Web 3.0 technology, blockchain is considered as a suitable solution for solving many problems arising from traditional contracts and can be considered as an alternative method to traditional contracts in the AEC industry. Using cryptocurrencies, switching to blockchain-based contracts, and using smart contracts will be advantageous for AEC industry in many ways. However, in addition to these advantages, the existence of risk factors cannot be denied. With this background, this study aims to identify risk factors affecting blockchain-based smart contract use in AEC industry through a comprehensive literature review and to prioritize the identified risk factors using Analytic Hierarchy Process, respectively. The prominent risks were found to include implementation risks, followed by legal risks and contractual risks. The contributions of the study to the academic literature are the identification of the risks that may occur during the integration of blockchain-based contracts into the AEC industry and the diagnosis of any problems that may occur during the integration process. Professionals in the field of construction management can also benefit greatly from the findings of this study by analyzing those risks throughout their projects.