Jens J. Hunhevicz

Jens J. Hunhevicz, Mahshid Motie, Daniel M. Hall

Performance contracts used for servitized business models enable consideration of overall life-cycle costs rather than just production costs. However, practical implementation of performance contracts has been limited due to challenges with performance evaluation, accountability, and financial concepts. As a solution, this paper proposes the connection of the digital building twin with blockchain-based smart contracts to execute performance-based digital payments. First, we conceptualize a technical architecture to connect blockchain to digital building twins. The digital building twin stores and evaluates performance data in real-time while the blockchain ensures transparency and trusted execution of automatic performance evaluation and rewards through smart contracts. Next, we demonstrate the feasibility of both the concept and technical architecture by integrating the Ethereum blockchain with digital building models and sensors via the Siemens building twin platform. The resulting prototype is the first full-stack implementation of a performance-based smart contract in the built environment.

Jens J. Hunhevicz, Daniel M. Hall

Blockchain and other forms of distributed ledger technology (DLT) provide an opportunity to integrate digital information, management, and contracts to increase trust and collaboration within the construction industry. DLT enables direct peer-to-peer transactions of value across a distributed network by providing an immutable and transparent record of these transactions. Furthermore, there is potential for business process optimization and automation on the transaction level, through the use of smart contracts, which are code protocols deployed on supported DLT systems. However, DLT research in the construction industry remains at a theoretical level; there have been few implementation case studies to date. One potential reason for this is a knowledge gap between use-case ideas and the DLT technical system implementation. This paper aims to reduce this gap by 1) reviewing and categorizing proposed DLT use cases in construction literature, 2) providing an overview of DLT and its design options, 3) proposing an integrated framework to match DLT design options with desired characteristics of a use case, and 4) analysing the use cases using the new framework. Together, the use case categories and proposed decision framework can guide future implementers toward more connected and structured thinking between the technological properties of DLT and use cases in construction.