Determining What Next to Automate in the Development of Smart Contracts in Construction: Five Principles for Guiding Incremental Change

Mason, Jim

Abstract

Existing research on smart contracts in construction primarily concentrates on their operational stage and the mechanics of their potential operation. Having established “can we do it?” the next question to answer is “how do we do it?” The answer involves a consideration around smart contract adoption and its synthesis with the entire construction process from procurement to in-use. Particular attention is needed for integration into complimentary and receptive working practices resulting in the optimum conditions for adoption. The current risk is that smart contract adoption may suffer from a lack of clear guidance and happens on a piecemeal and ad-hoc basis. This study proposes a principled approach to counter this risk. This approach has been seen before in construction law in the form of the Abrahamson Principles, which remain a seminal reference point in any discussion of construction law. The use of a framework is therefore proposed based on five key principles to guide the automation of contract terms, discussing the importance of control, codability, consideration, efficiency, and data access. This approach uses an interdisciplinary methodology with an applied professional constituency to promote law reform-based research. The inductive/deductive approach is aimed at sharing insights into the question with the hope that the consequent principles aid the incremental implementation of smart contracts in the industry.

• Journal Article Type: Article
• Acceptance Date: Jan 1, 2024
• Online Publication Date: Mar 29, 2024
• Publication Date: Aug 1, 2024
• Deposit Date: Jan 3, 2024
• Publicly Available Date: Apr 30, 2024
• Print ISSN: 1943-4162
• Electronic ISSN: 1943-4170
• Publisher: American Society of Civil Engineers
• Peer Reviewed: Peer Reviewed
• Volume: 16
• Issue: 3
• DOI: https://doi.org/10.1061/JLADAH.LADR-1137
• Public URL: https://uwe-repository.worktribe.com/output/11547723