A Blockchained Work Package System for Progress Payment and Delay Claims

Abstract

<p>Progress payment is an effective method for project management in the construction industry, with payments being made according to project milestones. However, stakeholders often dispute the value of the work when delays occur, which can hinder the progress of the project. Existing research on dynamically calculating progress value while considering delay claims within the framework of progress payments is limited. To bridge this gap, this research introduces an innovative blockchained work package system (BC-WPS) for payment management, utilizing smart contracts for the automated execution of progress payments and delay analysis upon work package completion. To this end, this research begins by designing a work package-based delay claims mechanism. It then presents a smart contract-based procedure for executing progress payments and delay claims. Third, a reputation mechanism is proposed to incentivize timely project delivery and encourage collaboration. Finally, the BC-WPS’ effectiveness is validated through real-world projects, indicating it can automate the work package-based payment management process efficiently and securely.<br></p>