Understanding barriers to the adoption of blockchain-enabled smart contracts in construction projects: perspectives of construction practitioners

Purpose Traditional paper-based contracts are document-intensive, insecure, susceptible to forgery and errors, detrimental to productivity improvement and require multiple intermediaries. Addressing these challenges requires computerised construction to modernise the way modern construction projects are procured with blockchain-enabled smart contracts. Smart contracts could replace paper-based contracts by improving transparency and security and automating contractual terms, processes and transacting activities. However, smart contracts are an emerging technology with limited adoption in construction projects, and the issues influencing its widespread adoption remain unclear and unexplored. Hence, this study aims at exploring and understanding the important obstacles to adoption of smart contracts in construction projects. Design/methodology/approach Using an international questionnaire survey, the study draws on experienced construction practitioners with direct involvement and knowledge in blockchain technology and smart contract initiatives and activities. Descriptive statistics and fuzzy logic techniques were used to analyse and model the quantitative survey data to establish the critical barriers to smart contracts adoption. Findings Organisational and external characteristics, personal characteristics and technology characteristics constitute major obstacles to the successful adoption of smart contracts. Construction practitioners’ limited knowledge of smart contracts, resistance to technology change, insufficiently digitalised construction industry and lack of or weak governmental support are critical to smart contracts adoption. Originality/value The research contributes to the body of knowledge on diffusing cutting-edge technology by advancing the understanding of practitioners’ perspectives on the primary obstacles to smart contracts adoption. Understanding the obstacles provides industry stakeholders (policymakers, leaders and practitioners) with underpinning knowledge with which to develop and implement corrective actions.