Utilizing Blockchain Technology in the UAE’s Construction Industry: Contract Administration and Management of Disputes and Claims
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Date
2023-12
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The British University in Dubai (BUiD)
Abstract
One of the main challenges faced by economies around the world is digital transformation. However, due to the large number of participants in single construction projects, the centralisation of authority, poor contract administration, lack of database and system interoperability, the construction industry has been unable to digitise, leading to delays and cost overruns, and disputes. The dissertation aims to explore and investigate the benefits of utilizing blockchain technology in construction contract administration, claim, and dispute management processes in depth, to decrease the number of disputes and claims, and to improve the efficiency, and overall productivity of the UAE construction industry. Further, the dissertation provides common causes of construction claims, and disputes, opportunities in implementation, functionalities of blockchain and smart contracts, adoption and adaptation guide, while observing other industries’ applications. Blockchain distributed structure provides a transparent, secure, and a private communication channel, thus establishing trust among contracting parties. Decentralisation supports document management, claim submissions, and automation of payments. Self-execution and enforcement of blockchain based smart contracts ensures compliance with contract provisions, claim process, procedure, and dispute mechanism. Through utilizing blockchain technology, most processes can be streamlined and automated, thereby ensuring compliance and reducing causes of dispute. In order to develop the dissertation, and answer the research questions, a qualitative research approach is employed, associated with literature from different sources. A thematic analysis strategy has been used combined with deductive reasoning of secondary data to validate or reject the hypothesis.
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Keywords
blockchain technology, smart contracts, advantages, disadvantages, FIDIC Red Book, claims, disputes, UAE construction industry, construction technology, challenges