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Front. Eng    2022, Vol. 9 Issue (2) : 196-213    https://doi.org/10.1007/s42524-022-0188-2
REVIEW ARTICLE
Systematic literature review on smart contracts in the construction industry: Potentials, benefits, and challenges
Xuling YE1, Ningshuang ZENG2(), Markus KÖNIG1
1. Department of Civil and Environmental Engineering, Ruhr-Universität Bochum, Universitätsstraße 150, D-44801 Bochum, Germany
2. Department of Civil and Environmental Engineering, Ruhr-Universität Bochum, Universitätsstraße 150, D-44801 Bochum, Germany; Department of Construction Management and Real Estate, School of Civil Engineering, Southeast University (Jiulonghu Campus), Nanjing 210096, China
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Abstract

The development of digital transformation in the construction industry has led to the increasing adoption of smart contracts. As programmable applications to automatically write, verify, and enforce transaction conditions, smart contracts can be used in different areas mainly to improve automation level, information security, and built digital environment enhancement. However, the smart contract is commonly mentioned as a blockchain appendage, while its unique connotation and value in the construction industry have not been recognized. Therefore, this study carries out a systematic review based on 81 research articles published from 2014 to 2021 on smart contract applications in construction to explore and highlight their potentials under domain-specific requirements. Results are analyzed according to research type categorization and domain codification. Eight research domains are identified, where the three most highly explored domains are contract and payment, supply chain and logistics, and information management. The integration of smart contracts with other innovative concepts and advanced technologies is analyzed. The applicability, benefits, and challenges of smart contract applications regarding different research domains are discussed.
Keywords smart contracts      blockchain      construction industry      BIM      systematic review     
Corresponding Author(s): Ningshuang ZENG   
Just Accepted Date: 21 March 2022   Online First Date: 29 April 2022    Issue Date: 25 May 2022
 Cite this article:   
Xuling YE,Ningshuang ZENG,Markus K?NIG. Systematic literature review on smart contracts in the construction industry: Potentials, benefits, and challenges[J]. Front. Eng, 2022, 9(2): 196-213.
 URL:  
https://academic.hep.com.cn/fem/EN/10.1007/s42524-022-0188-2
https://academic.hep.com.cn/fem/EN/Y2022/V9/I2/196
Fig.1  Overview of research methodology.
Fig.2  Data collection flow diagram based on PRISMA.
No. Screening criteria Result (article number)
1 Duplicate articles Excluded (126)
2 Articles that are not available in English Excluded (59)
3 Articles without full availability Excluded (5)
4 Articles with unsuitable type (thesis, review, and report) Excluded (135)
5 Articles that are not about the construction field (e.g., computer science) Excluded (506)
No. Quality evaluation criteria Result (article number)
1 Clear findings or specific applications of smart contracts A: Included and focused (29)
2 Introduction of application of smart contracts B: Included (52)
3 General and limited introduction of smart contracts C: Excluded (49)
Tab.1  Inclusion and exclusion criteria
Research type Description
Conceptual paper Explorations of new perspectives or conceptual frameworks
Investigation research A study that investigates a problem in smart contracts practice; causal properties are studied empirically, such as by case study, field study, field experiment, or survey
Solution proposal A study that proposes a novel method or technique and argues for its relevance; a proof-of-concept may be offered
Validation research Investigations of the properties of a solution proposal that has not yet been implemented in smart contracts practice; the solution may have been proposed elsewhere
Opinion paper A study that reflects an author’s opinions about what is wrong or good about smart contracts in construction
Experience paper The experience may concern one or many projects, but must be from the author’s personal experience; a study must contain a list of lessons learned
Tab.2  Definitions of different research types
First-level code Second-level code First-level code Second-level code
Administration Administration Quality information management Information management, quality management
Administration risk Real-time information Information management
Employee Cash flow Contract and payment
BIM-based design Design, information management Contract
Design liability Design Crypto asset
Smart construction object Digital currency
Facility management Facility management Financial supply chain Contract and payment, supply chain and logistics
As-built information Information management Financial system Contract and payment
BIM Interim payment
BIM change contract Payment
Common data environment Payment security
Data flow Progress payment
Data security Transaction
Digital twin Quality inspection Quality management
File system Quality management
Fog computing Safety Site management
Information exchange record Site management
Information flow Worker management
Information management Integrated project delivery Supply chain and logistics
Information redundancy Logistics
Information sharing Prefabricated supply chain
Information traceability Production
Interoperability Supply chain management
Internet of Things (IoT) Supply chain traceability
Tab.3  First- and second-level codes for research domain codification
Fig.3  Year and type distribution of the selected articles.
Fig.4  Classification of smart contract applications.
Fig.5  Research domains of smart contracts.
Fig.6  Distribution of research domains and types.
Research domains Main challenges
Technical challenges Managerial challenges
Contract and payment Advanced underlying logic design Regulation change
Compound smart contracts deployment Inconsistency of legal systems
Integration with BIM Difficulties in defining unforeseen conditions
Lack of standardization in protocol design
Administration, Design, Site management Define possible application scenarios Explore domain-specific requirements
Information management, Quality management Integration of other ICTs (IoT, BIM, AI) Lack of a driving force
Lack of standardization in protocol design
Supply chain and logistics, Facility management Development of DAOs Explore domain-specific requirements
Integration of other ICTs (IoT, BIM, AI)
Tab.4  Main challenges of smart contracts in construction
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