• About
  • Privacy & Policy
  • Contact
Monday, May 23, 2022
  • Login
MYTECHMAG-A Leading Technology Magazine
Global Net Zero Action 2022
Project Finance & Project Financial Modelling Top Banner
Investment USA 2022
Digital Transformation Conference Top Banner
OGAD Top Banner
Payments Summit Europe Top Banner
CCUS Top Banner
Exhivits The Virtual Exhibition Top Banner
Data Driven Oil & Gas 2022 Top Banner
Renewable Energy Power Purchase Agreements Top Banner
Mastering Clean Hydrogen Top Banner
DWS Top Banner
Qube Events NPF Top Banner
Cyber Defense Top Banner
Energy Storage Top Banner
LNG Top Banner
  • Home
  • Technology
    • Supply Chain
    • Enterprise Security
    • Cloud Technology
    • RegTech
    • HPC
    • Collaboration
    • IOT
    • Compliance
    • Artificial Intelligence
    • Field Service
    • CRM
    • Project Management
    • Fintech
    • Risk Management
    • Cyber Security
    • Enterprise Architecture
    • EAM
    • ECM
    • Block Chain
    • Data Analytics
    • Robotics
    • Disaster Recovery
    • Marketing
  • Industry
    • Retail
    • Healthcare
    • Construction
    • Pharma
    • Education
    • Textile
    • Aerospace and Defense
    • Banking
    • Smart City
    • Oil and Gas
    • Telecom
    • Travel & Hospitality
    • Agri Tech
    • Media & Entertainment
    • Logistics
    • Manufacturing
    • Legal
    • Government
    • Real Estate
    • Automotive
    • Food and Beverage
    • Biotech
    • HR
    • Insurance
    • Energy and Utilities
    • Contact Center
    • Capital Market
    • Chemical
    • Sports
  • Vendors
    • Aerospace and Defense
    • Agri Tech
    • Artificial Intelligence
    • Automotive
    • Banking
    • Capital Market
    • Collaboration
    • Construction
    • Contact Center
    • CRM
    • Cyber Security
    • Data Analytics
    • Disaster Recovery
    • EAM
    • ECM
    • Energy and Utilities
    • Enterprise Architecture
    • Enterprise Security
    • Fintech
    • Government
    • Healthcare
    • Insurance
    • IOT
    • Legal
    • Logistics
    • Manufacturing
    • Marketing
    • Oil and Gas
    • Pharma
    • Retail
    • Risk Management
    • Smart City
    • Supply Chain
    • Top CEOs
  • Magazines EditionsMost Clicked
  • News
  • Featured Articles
  • Top CEOs
  • Events
No Result
View All Result
  • Home
  • Technology
    • Supply Chain
    • Enterprise Security
    • Cloud Technology
    • RegTech
    • HPC
    • Collaboration
    • IOT
    • Compliance
    • Artificial Intelligence
    • Field Service
    • CRM
    • Project Management
    • Fintech
    • Risk Management
    • Cyber Security
    • Enterprise Architecture
    • EAM
    • ECM
    • Block Chain
    • Data Analytics
    • Robotics
    • Disaster Recovery
    • Marketing
  • Industry
    • Retail
    • Healthcare
    • Construction
    • Pharma
    • Education
    • Textile
    • Aerospace and Defense
    • Banking
    • Smart City
    • Oil and Gas
    • Telecom
    • Travel & Hospitality
    • Agri Tech
    • Media & Entertainment
    • Logistics
    • Manufacturing
    • Legal
    • Government
    • Real Estate
    • Automotive
    • Food and Beverage
    • Biotech
    • HR
    • Insurance
    • Energy and Utilities
    • Contact Center
    • Capital Market
    • Chemical
    • Sports
  • Vendors
    • Aerospace and Defense
    • Agri Tech
    • Artificial Intelligence
    • Automotive
    • Banking
    • Capital Market
    • Collaboration
    • Construction
    • Contact Center
    • CRM
    • Cyber Security
    • Data Analytics
    • Disaster Recovery
    • EAM
    • ECM
    • Energy and Utilities
    • Enterprise Architecture
    • Enterprise Security
    • Fintech
    • Government
    • Healthcare
    • Insurance
    • IOT
    • Legal
    • Logistics
    • Manufacturing
    • Marketing
    • Oil and Gas
    • Pharma
    • Retail
    • Risk Management
    • Smart City
    • Supply Chain
    • Top CEOs
  • Magazines EditionsMost Clicked
  • News
  • Featured Articles
  • Top CEOs
  • Events
MYTECHMAG-A Leading Technology Magazine
No Result
View All Result
MYTECHMAG-A Leading Technology Magazine
No Result
View All Result
Home Construction

How Blockchain Can Help Construction Management

Connor Butler and Daviane Cruz by Connor Butler and Daviane Cruz
March 4, 2019
in Construction, Executive Voice
Connor-Butler-&-Daviane-Cruz

By: Connor Butler & Daviane Cruz

23
SHARES
91
VIEWS

Construction is an engine for growth in economy.  Construction spending accounts for about 3.5% of the US GDP but the overall impact to the economy is much bigger as companies rely on construction spending to add capital assets that drive economic growth.

Unfortunately, construction productivity has been stuck for over 50 years. Technology has a role to play in fixing this problem.

We believe Blockchain can be a catalyst for improvement in construction by enhancing transparency, lowering transaction costs, improving supply chain management and reducing fraud.  Because it is a completely new technology, the industry can build a new delivery model around it versus the old way of bolting on technology to existing business processes.

What is it?

Blockchain is one of the most promising new technologies. It is not just a fad. This new technology is changing the way that corporations exchange value with one another. It can bring numerous benefits for organizations, offering a more efficient, transparent and reliable system. Blockchain, as the name says, is a “chain of blocks” where the blocks contains a list of records, which are linked using cryptography. All the data is encrypted, therefore all information on the system is secured. Once the data is validated on the blocks, it cannot be copied, modified or deleted. Moreover, it can increase trust and sustain long term relationships.

Blockchain improves Transparency with Smart Contracts

Going back to 1994 and the UK’s Latham Report, there have been calls for improved transparency in construction.  There is not currently an easy way to do that.  Even with “open book” contracts, data is passed back and forth and a tremendous effort is required to normalize it between two or more parties. According to the US National Institute of Standards and Technology (NIST) “The cost of inadequate interoperability in the US capital facilities industry: $19.2 billion per year”. We believe blockchain is the technology solution the Industry has been waiting on with Smart Contracts.

Smart contract is a mutual agreement between two parties, as well as the rules agreed with each other – there is no need for middlemen. The information is written by cryptography assuring the safety of the individuals involved. This new distributed ledger technology can record and transfer data with transparency, safety, democracy and without a central authority, consequently lowering the costs and strengthening the integrity and confidentiality of the process. 

Supply Chain Management

According to NIST, the US spent $307B on construction materials in 2010.  The number is expected to be much higher now as the result of an improved economy, general inflation and the effect of trade disputes between the US and China.  Despite the massive size of the construction supply chain, the tools that are used to manage it are primitive and inefficient.  Most of the construction supply chain management is done through Excel, email and phone calls.  The layers of wholesalers, distributors and resellers combined with a culture of off book price discounts and rebates makes it very hard for supply chain managers to know if they are even getting fair pricing.  We should not be surprised then by the data that says there is huge room for improvement here.  According to a  survey completed by National Electrical Contractors Association (NECA):  “Most contactors estimate they spend 1-5 hours per PO correcting order-handling issues, a factor that results in significant lost time and money.”  Because of its built-in data sharing, blockchain can significantly reduce these types of errors.  It can also reduce the effort required to track the supply chain.  A recent CII survey revealed the need for this:

ciiSource:  CII

Blockchain will also increase the adoption of vendor managed inventory (VMI) since the technology can allow for the immutable tracking of anything across the supply chain. To put it simply, clients can know everything about how their purchase was made, such as its quality and conditions, increasing the reliability of the goods and services received. Since the transaction is shared with everyone on the chain, the authenticity of a product can be verified by everyone on the system. As a result, the integrity of companies with their clients is maintained.

We often joke that construction is the only industry where shipping containers show up empty for storage and leave full after the project is complete.  At the end of projects, it is common to have large amounts of material left on jobsites.  Removing and/or repositioning the material adds unnecessary labour costs.

With blockchain technology is possible to track every transaction of a product, such as the quantity, purchase orders, receipts, shipment notifications or other trade-related documents. It can also verify certification and the quality of a product. Since all the data is synchronized, it can be shared with suppliers and vendors that are involved in the process.

supplier-vendorsReducing Fraud

Even in developed countries, fraud is a major problem in construction.  A study in the UK found that 10% of the cost of construction can be related to fraud. Since blockchain is a decentralised technology, all the data is accessible to everyone on the network, bringing more transparency to organizations and preventing possible fraudulent intentions. The conventional system is vulnerable and can lead to unethical behaviour due to personal interest of whoever manages the system.

In a construction project, there are a lot of processes, individuals, materials and products involved, such as money transaction/exchange, shared data and so on. Blockchain can increase trust relations with Contract Management, Equipment Leasing and Supply Chain Management. This can give a wider visibility of the overall project, such as assets and costs related in order to improve its performance, if needed.

Thinking forward

By adopting blockchain, construction industries enhance efficiency, increase productivity and reduce construction waste. Multinational technology companies, such as IBM, are adopting blockchain in construction process as to reduce challenges facing this industry.

Blockchain is an innovative technology that will provide more efficient processes, enhanced productivity, reduced management costs, transparency and increased trust for the construction industry.

Share2Tweet6Share9
Previous Post

US Shippers towards Collaboration

Next Post

The Three Technologies that can permanently Change the Banking Sector

Connor Butler and Daviane Cruz

Connor Butler and Daviane Cruz

Connor Butler is the Co-Founder and Managing Principal of Relevate Lean Construction Consulting. He has been working in the construction industry since 1993. His first construction job was as a laborer for BBP Concrete in Phoenix AZ. He has a bachelor’s degree in Mechanical Engineering from the University of Arizona and an MBA from the W.P. Carey School of Business at Arizona State University. Connor spent 19 years with Intel. He started as an intern in 1997 commissioning a new building in Chandler AZ. He held positions in engineering, design management, and engineering management. Prior to his role as Innovation Manager, Connor led the first major BIM implementation at Intel. Connor is passionate about on boarding teams, leadership development, and creating project cultures of continuous learning. He enjoys spending time with his family, reading, and traveling. Daviane Cruz is a Commercial Risk Data Analyst for Relevate Lean Construction. She has a BSc in Accounting and over 10 years of experience in accounting and finance roles. Aiming to become ACCA fully qualified accountant. Daviane is doing her master’s degree in Accounting and Finance Management in Dublin, Ireland. Her Master’s thesis is focused on the benefits of blockchain technology in the reconciliation system. Her interest in doing this research came from her previous experience and academic background. She saw a misalignment in the current system and observed the necessity of an improvement in this area since an accurate balance increases the reliability and overall performance of the accounting system. She loves discovering new cultures, running, reading, and spending time with family and friends.

Related Posts

Thinkproject Logo
Construction Solution Providers

Make Intelligence Your Asset

March 2, 2022
iOffice+SpaceIQ Logo
Construction Solution Providers

An Innovative Solution

December 29, 2021
Project Frog Logo
Construction Solution Providers

Simplified Building-wide Solutions

December 28, 2021
Next Post
banking-sector

The Three Technologies that can permanently Change the Banking Sector

Investment USA 2022 Side Banner
CCUS Side Banner
Renewable Energy Power Purchase Agreements Side Banner
Global Net Zero Action 2022
Exhivits The Virtual Exhibition Side Banner
Payments Summit Europe Side Banner
Qube Events NPF Side Banner
Data Driven Oil & Gas 2022 Side Banner
Mastering Clean Hydrogen Side Banner
Energy Storage Side Banner
Project Finance & Project Financial Modelling Side Banner
Digital Transformation Conference Side Banner
DWS Side Banner
LNG Side Banner
Cyber Defense Side Banner
OGAD Side Banner
Tweets by MyTechMag
DWS Side Banner
MYTECHMAG

Transforming news into insights, not only do we serve as a source of information but as the breeding ground for innovative ideas and exchange of breathtaking strategizes that can make a difference in your technological understanding.

Follow Us

  • Home
  • About Us
  • Disclaimer
  • Privacy Policy
  • Terms of Use
  • Sitemap
  • News
  • Subscribe
  • Contact Us
  • RSS
  • Write For Us

Recent Posts

Sudhakar Ramakrishna

Sudhakar Ramakrishna Net Worth, Biography, Age, Career, Salary & More

May 19, 2022
Jason Citron

Jason Citron Net Worth, Biography, Age, Career, Salary & More

May 18, 2022
  • About
  • Privacy & Policy
  • Contact

© Copyright © 2022 MYTECHMAG. All Right Reserved.

No Result
View All Result
  • Home
  • Technology
  • Industry
  • Vendors
  • Magazines Editions
  • News
  • Featured Articles
  • Top CEOs
  • Events

© Copyright © 2022 MYTECHMAG. All Right Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In