Smart Contract for Payment of Public Construction Projects: Stakeholder’s Perspectives

Abstract

Smart contracts are self-executing computerized codes that execute the terms of contracts when the preset conditions are met. Smart contracts have gained significant attention globally for their potential to streamline processes and enhance transparency in various industries. This paper explores the perceptions of construction industry professionals regarding the effectiveness of smart contracts in overcoming the payment challenges of public projects. Using a structured questionnaire, data were collected from 41 respondents, including contractors, employers’ representatives, project managers, engineers, architects, and quantity surveyors. The findings reveal moderate familiarity with smart contract technology among the respondents, with varying degrees of interaction and usage. While most respondents support the implementation of smart contracts for the payment of public projects, they also believe that government support and continuous awareness could significantly boost the adoption of smart contracts in the construction industry. However, some respondents remain skeptical about the ability of smart contracts to eliminate delayed payment due to the budgetary systems and bureaucratic nature of public projects. In conclusion, the research underscores the potential of smart contracts to revolutionize the traditional payment system through recommendations such as implementing strategic regulatory frameworks, technical training, and infrastructural investments. The study contributes valuable insights into the current state of smart contract adoption and sets the stage for future research and practical advancements in the field.