The greatest value of blockchain in the construction industry is its ability to deliver a greater degree of trust and traceability. The use of smart contracts will act as an integral part of bringing some form of transparency to the management of construction projects leading to the need to reduce intermediaries. Blockchain in this industry will enable transparency, data management, tracking, auditability.
Using blockchain technology in the payments sector of the industry, will help enhance and eliminate trust issues by integrating smart contracts. To ensure prompt settlement for payment parameters, blockchain can be implemented which in turn will make handling payments in USD, EUR, CND easier and without currency translation risk.
To prevent miscommunication, implementation of blockchain will help in designing incentive structures for the participants to work profitably, streamlining permitting process and ensuring reports are provided to all key stakeholders simultaneously.
In this sector, blockchain will implement a transparent governance process that, whenever possible may resolve disputes quickly, showcase a clear path for milestones, synthesizing data for better PCM calculations (GAAP + Tax) and ensure sharing & settlement of any intercompany entries automatically by stakeholders in change of bookkeeping, inventory, R&D and treasury.
Blockchain will resolute disputes, government audits, change order tracking and approvals, and proper release of bonds.
