Development of a Decentralized Application for Efficient and Transparent Construction Claims

Abstract

The construction industry in Pakistan is a major contributor to the country's economy, with several ongoing infrastructure projects. However, the industry faces significant challenges, particularly in its claim management system. In response, this research aims to identify the issues within the existing claim management system and develop a blockchain-based application to enhance its efficiency and transparency. The research follows a three-stage methodology, starting with the identification of problems in traditional claim management systems through an extensive literature review. Subsequently, a decentralized application is developed, involving front-end development, smart contract creation, and deployment on the blockchain. The frontend of the application is built using React.js, with role-based access control to ensure restricted access to specific projects or claims, enhancing security and privacy. Smart contracts, implemented using Solidity, govern the business logic of the application, enabling users to create and manage claims efficiently. The application is deployed on the Polygon test net for faster transaction processing and lower fees compared to the Ethereum main net. Feedback on the developed solution is obtained from 19 construction industry professionals and experts through interviews. The results show that the blockchain-based application significantly improves claim management efficiency and addresses the majority of issues compared to traditional documented record management systems. However, it also reveals that the system is currently unable to cover oral instructions from clients for certain changes in design or work patterns. The research concludes with the presentation of the B-CMS framework, guiding claim management processes with the developed system. The findings validate the effectiveness and reliability of the blockchain-based application, showcasing its potential to positively impact the construction industry in Pakistan and beyond.