More transparency and security in construction contracts
Digitalisation is also affecting construction contracts – new technologies such as blockchain and smart contracts promise to make processes more efficient, secure and traceable. Especially in an industry where numerous players and contracts come together, automated processes and tamper-proof documentation can bring decisive competitive advantages. If these innovations are used skilfully, they open up great opportunities for cost reduction and risk minimisation.
What challenges currently exist in construction contract management – and what success factors are essential for blockchain & smart contracts to actually create added value? We at 3XPERTS shed light on the most important aspects and show how we, together with our sister company B3YOND-IT, are driving the industry forward.
Challenges in construction contracts
Traditional construction contract management is characterised by time-consuming paper documentation, manual checking and a lack of transparency:
- Non-transparent change history
Every addendum, change to the specifications or deviation is recorded on paper or in centralised Excel lists. It is often difficult to reconstruct who made which agreements and when. - High administrative effort
The manual checking of invoices, proof of performance and approvals ties up valuable resources – and opens the door to errors. - Gaps in evidence
In the event of a dispute, digital and analogue documents are difficult to reconcile. Missing originals or unclearly defined milestones lead to unnecessary delays and subsequent claims. - Complex supply and service chains
Construction projects often involve numerous subcontractors and suppliers. The decentralised structure complicates coordination and makes it difficult to track material deliveries and partial services transparently. - Legally compliant archiving
Legal retention periods and obligations to provide evidence require audit-proof storage – in practice, however, digital archives are not always client-compatible and tamper-proof.
Opportunities and success factors through blockchain & smart contracts
The use of blockchain technology and self-executing smart contracts can specifically address these problems:
- Tamper-proof documentation
Every contract amendment and every milestone is stored as a block in a decentralised database. Once confirmed, these data records are unchangeable and can be viewed transparently by all project participants. - Automated service processing
Smart contracts trigger payments and approvals automatically as soon as defined conditions (e.g. acceptance protocol, material delivery) are met. Delays caused by manual checking processes are eliminated. - Real-time transparency
Project statuses, payment flows and proof of performance can be tracked live in dashboards – ideal for large-scale projects and international collaborations with complex reporting requirements. - Interoperability and standardisation
Open interfaces allow blockchain solutions to be integrated into existing ERP or CAFM systems. Together with B3YOND-IT, we develop modular tools that fit seamlessly into workflows and avoid data islands. - Audit-proof archiving
Long-term retention obligations are automatically complied with by distributed ledgers. Traceability is guaranteed even decades later – a plus for legal certainty and compliance.
3XPERTS: Digitalisation with practical relevance
At 3XPERTS, we have years of experience in construction project management and know the challenges on site. Together with our IT specialist B3YOND-IT, we develop customised blockchain solutions that are practical, scalable and legally compliant.
Are you ready to take your contract management to the next level?
Contact us at info@3xperts.com or use our digital contact form. We will check without obligation how we can make your projects more efficient and secure with blockchain and smart contracts.