The construction industry is the least digitised sector in the world and it contributes significantly less, in terms of productivity, to the global economy than its average potential. Current trends in the construction industry are aimed at leveraging cutting-edge technologies to improve productivity and decision making, this approach is commonly referred to as smart construction. Smart construction involves the augmentation of construction resources such as machinery, devices, components and people with digital technologies for transforming the construction industry. Many aspects of construction have witnessed transformation through automation, cyber-physical systems, cloud- computing, cognitive computing, immersive technologies and so on. An emerging concept in digital technology known as internet of things (IoT) is gradually advancing the possibilities of smart construction in various areas of application. This study aims to assess the role of internet of things (IoT) in enhancing the delivery of smart construction. From the perspectives of modern construction methods such as offsite construction, lean construction, smart assembly and so on, this study presents a mixed methods systematic review of the various areas of application of IoT in modern construction methods and identifies the emerging themes of IoT application in smart construction. The methods and current challenges of using IoT in application areas such as; cyber-physical modelling; offsite manufacturing; onsite assembly; handling and logistics; real-time monitoring and control; health and safety; information management and communication; energy management; waste minimisation; remote inspection; and lean construction management, is presented in the paper. This study substantially contributes to existing knowledge of using digital technologies for transforming construction operations and lays a solid foundation for further research in the application of IoT for smart construction. The challenges identified from the various areas of IoT application are opportunities for the development of cutting-edge solutions in construction.