Transforming Construction Entities from Traditional Management to Autonomous Management Using Blockchain

Abstract

Digitalizing supports construction entities’ processes that aim to perform better. However, bureaucracy and excessively complicated procedures are still causing poor project performance. The traditional management authority model is centralising and pyramidal, where decisions come from the upper management and apply over the project regardless of the project-specific needs. Autonomous management processes are driven according to individuals or workgroups perspectives. The autonomous management approach allows for an accelerated decision process to improve construction project performance. This article investigates the management of construction entities and activities using an autonomous management system by exploring the possibility of developing Blockchain-based management tools. Blockchain refers to the distributed ledger technology where data are stored permanently on a multi-node network and connected using cryptography. Blockchain can help track activities, monitor individuals’ performance and enforce accountability to create an autonomous construction organisation. Decentralised Autonomous Organisations (DAO) is a Blockchain concept that aims to automate decisions and facilitate process workflow. DAOs aim to reduce the time needed for repetitive decisions and distribute the responsibilities among the project participant. The study aims to shed light on the DAO concept and explore the possibilities of adopting it within construction practices. The article presents a hypothetical example for using DAOs in construction using the DAO deployment platform to illustrate the creative workflow for non-coders.