The construction industry is where teams come together to shape and build the environment. Information modeling in the building industry is becoming widespread. There is an increase in new ideas in the industry. There is openness concerning collaboration. This ideal is being used to initiate a momentum using the blockchain technology.
Blockchain technology can securely preserve the chronology of data in a decentralized manner. Governance is essential in the construction process. Approvals in the pre-construction phase will require voting on several issues, and this needs to be documented to counter contradicting opinions with the flow of time.
The procurement process is one of the fundamental concepts in a building construction process. The direct contracts are limited.
When the contractual links in construction projects are examined, many intermediaries come in between the client and the end product. And every consultant will have an individual contract. There will be one contract between the client and the main contract. The main contractor manages most of the tasks and responsibilities to accomplish the suppliers and manufacturers of the goods.
With the coming of the blockchain technology, there will be more of direct contractual relationships happening. This technology can also help in compensating for skill shortage in the industry. A gig economy is underway.
The application of smart contracts will help in the automation process by enabling the expeditious administration of subcontracts. Thus the record of transactions in the whole process will be auditable. The certifications in the life cycle of the building can also be efficiently monitored.
Digital IDs will enable the execution of more of direct contracts, and this will include making direct contracts with everyone in the process ranging from the monitoring team, the traders, the manufacturers of building supplies, designers and more. Eventually, the intermediary cost and related add-on expenditure can be done away with.
This will be made possible with a platform that will provide for the meeting of all these people at one place in their respective categories. The exact amount of materials required for the construction can be calculated. Labor can be managed with smart contracts. And the quality control at every stage can as well be documented. When they are contracted directly, they can get paid after each section of the work gets completed. They will complete their work at a faster pace motivated by the quick pay release.
XinFin can help code the dApps to customize solutions for your business using the hybrid blockchain technology.