Abstract

The aim of the paper is to evaluate issues with the existing payment system for construction projects with a view to recommend smart contract payment system (an effective alternative) for construction projects. A qualitative systematic review was conducted to identify the challenges of the existing payment system followed by a focus group interviews session with construction payment stakeholders. The findings reveal that the issues with the existing payment system can be grossly minimized if there is a better interpretation and understanding of contract conditions/terms at the outset by the project participants. Additionally, the paper disclosed that the adoption of smart contract payment system has a better advantage of eliminating mistrust, delayed payment, mal payment and non-payment for construction projects. The paper concludes that smart contract payment system can significantly abate payment related-issues through the provision of an enabling trusted environment, transparent and traceable transaction, prompt automation of payment terms without a central authorization and elimination of disputes among contracting parties. Because Smart contract payment system is technology-based, it is more suitable for adoption in a technologically-enabled environment.