Blockchain-enabled relational construction project governance
Creators: name: Hwang, Seongha
Publisher: name: Loughborough University
Year: 2024

description: Construction project governance (CPG) provides a structured decision-making framework to guide stakeholders in complex construction project contexts. There are two types of CPG: control-based contractual CPG and trust-based relational CPG. The current CPG is primarily biased towards contractual CPG with rigorous monitoring processes and uncompromising contractual specifications due to the temporality of construction projects. As a result of this rigid contractual CPG, collaboration and decision-making are disjointed. These adverse outcomes decrease trust, leading to poor project performance, such as time delays, cost overruns and low-quality construction projects. Establishing trust-based relational CPG through blockchain technology (BT) can increase trust between construction project stakeholders by enhancing mutuality, flexibility and solidarity between project stakeholders. However, few studies have examined BT’s capabilities to increase trust in relational CPG.This study aims to develop a Blockchain-Enabled Relational CPG (BRCPG) model as a trust-based relational CPG. The study adopted a mixed-method convergent research design comprising semi-structured interviews with construction project managers equipped with BT knowledge (N=10) and a questionnaire survey with BT developers and consultants (N=200 distributed, n=118 received). Thematic analysis of qualitative interview data was performed to explore BT system components for relational CPG. Descriptive statistics, the non-parametric Kruskal–Wallis test and Welch’s t-test for the quantitative questionnaire data were used to explore BT system applications as trust enablers in relational CPG contexts. The BRCPG model was developed based on the literature review findings, semi-structured interviews and a questionnaire survey. The BRCPG model was validated through system tests with prototype system development and a workshop with construction professionals (N=7).Key research findings include CPG trust requirements (mutuality, flexibility and solidarity) for enhancing trust consisting of system-based, cognition-based and affect-based trust at the project level. The findings present significant BT system components and applications to increase trust in relationalCPG and propose the BRCPG model as a new type of relational CPG. This model can be tailored to unique construction project contexts and adopted without modifying the existing contractual CPG system through a common data environment (CDE) during the project period. This will benefit key stakeholders, including the project owner facing low performance under the current contractual CPG and the main contractors having complex interfaces with project stakeholders. The results extend the existing CPG theories about a balanced project governance structure for contractual CPG (control mechanism) and relational CPG (trust mechanism) through BT. The results provide the practical implementation of the BRCPG model through prototype system development to enhance trust between stakeholders at the project level.