Intelligent contracts and the construction industry

Mason, Jim

Abstract

Advances in technology have resulted in a fast changing landscape for construction contracts. Lawyers struggle to keep up with the pace of innovation and the need to provide legal solutions and accommodate new approaches. Building Information Modelling (BIM) has become part of the common parlance in construction notwithstanding limited evidence of its impact on the ground... Intelligent contracts appear as a logical extension to BIM whereby the contractual performance itself becomes automated. However, intelligent contracts work best where they are short term or are of instantaneous effect. This is at odds with the complicated and long-running nature of construction projects. Further, storage constraints, compatibility and reliability issues together with confidentiality and the long term nature of distributed ledgers pose additional problems. The aim of this paper is to present the debate about what could be achieved in the construction industry by the adoption of intelligent contracts. An on-line forum provided the secondary data on which the discussion is based. The objectives are to introduce aspects of technological advancement within commerce generally and to discuss their application in construction. The hypothesis advanced is that certain aspects of the construction contract cannot be fully intelligent and the best that can be achieved in the short to medium term is a semi-automated position. Further, intelligent contracts should be viewed as part of the BIM-led revolution in construction and not separate from it. The recommendation is that incremental advances such as the coding of project management and contract administration data be targeted to provide improved operational efficiency and value savings.

Citation

Mason, J. (2017). Intelligent contracts and the construction industry. Journal of Legal Affairs and Dispute Resolution in Engineering and Construction, 9(3), https://doi.org/10.1061/%28ASCE%29LA.1943-4170.0000233%23sthash.wMgQa56Q.dpuf

• Journal Article Type: Article
• Acceptance Date: Dec 2, 2016
• Online Publication Date: Apr 20, 2017
• Publication Date: Aug 31, 2017
• Deposit Date: Dec 5, 2016
• Publicly Available Date: Dec 7, 2016
• Journal: Journal of Legal Affairs and Dispute Resolution in Engineering and Construction
• Print ISSN: 1943-4162
• Publisher: American Society of Civil Engineers
• Peer Reviewed: Peer Reviewed
• Volume: 9
• Issue: 3
• DOI: https://doi.org/10.1061/%28ASCE%29LA.1943-4170.0000233%23sthash.wMgQa56Q.dpuf
• Keywords: smart contracts, BIM, intelligent contracts, technology, automated construction process, construction Law
• Public URL: https://uwe-repository.worktribe.com/output/882448
• Publisher URL: http://dx.doi.org/10.1061/(ASCE)LA.1943-4170.0000233#sthash.wMgQa56Q.dpuf
• Additional Information: Additional Information : This is the accepted version of an article forthcoming in Journal of Legal Affairs and Dispute Resolution in Engineering and Construction