Ethical and social implications of smart contracts in construction: comparison with Joint Contracts Tribunal procedures

The ethical and social implications of smart contracts (SC) in the construction industry are examined, with a particular focus on their interaction with the Joint Contracts Tribunal (JCT) suite of standard forms. Using a qualitative, narrative literature review, this article compares blockchain-enabled automation with established contractual mechanisms, concentrating on payment processes, governance and the role of professional judgement. Although the findings suggest that SC can enhance transparency and payment integrity, especially in a building information modelling enabled environment, they also introduce rigidity, reduce the scope for discretionary decision making and raise concerns regarding fairness, inclusivity and legal certainty. A hybrid model is proposed in which SC complement, rather than replace, JCT mechanisms, preserving relational trust and interpretative flexibility while delivering auditable efficiency where automation adds genuine value. The review draws on peer-reviewed academic literature, industry reports and material relevant to contemporary UK construction practice. Academic databases (Scopus, ScienceDirect, Taylor & Francis Online and the ICE Virtual library) were searched using targeted keywords. Sources were selected based on relevance, academic rigour and recency, with priority given to publications from the past decade.

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Publication Details

Journal
Proceedings of the Institution of Civil Engineers - Civil Engineering
Published
2026-06-27
DOI
https://doi.org/10.1680/jcien.25.00559
Primary Topic
Blockchain Technology Applications and Security
Type
article
Field-Weighted Citation Impact
0.00
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article

Ethical and social implications of smart contracts in construction: comparison with Joint Contracts Tribunal procedures

Paul Tracey, Navaneath Narendra Vasudeva
Proceedings of the Institution of Civil Engineers - Civil Engineering
Blockchain Technology Applications and Security
article

Ethical and social implications of smart contracts in construction: comparison with Joint Contracts Tribunal procedures

Paul Tracey, Navaneath Narendra Vasudeva
article en

Abstract

The ethical and social implications of smart contracts (SC) in the construction industry are examined, with a particular focus on their interaction with the Joint Contracts Tribunal (JCT) suite of standard forms. Using a qualitative, narrative literature review, this article compares blockchain-enabled automation with established contractual mechanisms, concentrating on payment processes, governance and the role of professional judgement. Although the findings suggest that SC can enhance transparency and payment integrity, especially in a building information modelling enabled environment, they also introduce rigidity, reduce the scope for discretionary decision making and raise concerns regarding fairness, inclusivity and legal certainty. A hybrid model is proposed in which SC complement, rather than replace, JCT mechanisms, preserving relational trust and interpretative flexibility while delivering auditable efficiency where automation adds genuine value. The review draws on peer-reviewed academic literature, industry reports and material relevant to contemporary UK construction practice. Academic databases (Scopus, ScienceDirect, Taylor & Francis Online and the ICE Virtual library) were searched using targeted keywords. Sources were selected based on relevance, academic rigour and recency, with priority given to publications from the past decade.

Proceedings of the Institution of Civil Engineers - Civil Engineering
University of Salford (GB)
Openalex Percentile: Top 2%
Blockchain Technology Applications and Security
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