Deakin University

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Construction payment automation through smart contract-based blockchain framework

conference contribution
posted on 2019-01-01, 00:00 authored by Han Luo, Moumita Das, Jun WangJun Wang, Jack C P Cheng
A construction contract facilitates payments through the supply chain by integrating people, activities, and events throughout the project period through obligations, permissions, and prohibitions in its terms and conditions. The management of payments is a manual process and is more difficult in the case of construction projects as different stakeholders at different levels of the project organizational structure are bound by different contracts. Moreover, payments are strongly affected by the lack of clarity in the definitions of the obligations, responsibilities, and liabilities of various stakeholders in construction contracts. This intensifies disputes and causes delays in construction payments leading to additional expenditure, cash flow problems, and lack of trust. Therefore, to address these problems, we propose a methodology to automate construction payments by formalizing them into smart contracts and executing on a decentralized blockchain based framework. We formalize the payment logic that binds the prohibitions and liabilities associated with financial commitments, such as interim payments on completion of tasks in a construction project, and convert it into a computer-executable code. A framework based on blockchain is used to host this smart contract and to automate actions such as the triggering of payments after achieving consensus among the relevant project stakeholders. This framework also address the conditions required for the security of information in construction projects, such as confidentiality and information integrity in a multi-party environment. The proposed framework is demonstrated through a case-based scenario.



International Association for Automation and Robotics in Contruction. Symposium (36th : 2019 : Banff, Alta.)


International Association for Automation and Robotics in Contruction Symposium


1254 - 1260


International Association for Automation and Robotics in Construction (IAARC)


Banff, Alta.

Place of publication

[Banff, Alta.]

Start date


End date




Publication classification

E1.1 Full written paper - refereed

Copyright notice

2019, International Association for Automation and Robotics in Construction (IAARC)


M Al-Hussein

Title of proceedings

ISARC 2019 : Proceedings of the 36th International Symposium on Automation and Robotics in Construction

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