scholarly journals APPLICABILITY OF BLOCKCHAIN TECHNOLOGY TO MANAGE FINANCIAL ISSUES IN THE SRI LANKAN CONSTRUCTION INDUSTRY

2021 ◽  
Author(s):  
H. Kosala ◽  
◽  
M. Francis ◽  
D. Sirimewan ◽  
◽  
...  
Keyword(s):  
Construction Industry ◽  
Social Issues ◽  
Sri Lankan ◽  
Blockchain Technology ◽  
Transaction Process ◽  
Content Analysis Method ◽  
Government Rules ◽  
Financial Issues ◽  
Expert Opinion Survey ◽  
Potential Use

The construction industry is one of the largest industries in any country, contributing significantly to economic growth. A range of researchers explained that the construction industry suffered from numerous issues where financial issues are more critical. Late payments, cash flow issues, and lack of security of the payment are some of them. Blockchain technology shows a potential use for managing financial activities. Therefore, this research tends to investigate the applicability of blockchain technology to manage financial issues in the Sri Lankan construction industry. A comprehensive literature survey was carried out to assess the concept of blockchain technology and identified financial issues in the construction industry. A qualitative expert opinion survey was conducted with eight construction experts who had knowledge of the blockchain technology, selected through purposive sampling to collect data in a Sri Lankan context. The collected data was analysed using the content analysis method. The findings of the expert interviews indicated that faster transactions would help to reduce late payments; removing third parties from the transaction will reduce the involvement of many parties in the transaction process; and trust, security, transparency will help to increase foreign investments. Further, the lack of knowledge in the area, legal and tax issues, low investment, and social issues will be the challenges in adopting blockchain technology to the construction industry. The research finally suggests the ways to overcome such challenges in terms of using pilot projects, government rules and regulation. Thus, the research proposes that use of blockchain technology could minimise a significant number of financial issues in the construction industry.

scholarly journals ANALYSIS OF FEASIBILITY OF BLOCKCHAIN TECHNOLOGY FOR INTERNATIONAL TRADE RELATED TO SRI LANKAN CONSTRUCTION INDUSTRY

2021 ◽  
Author(s):  
H.D. Weerakoon ◽  
◽  
H. Chandanie ◽  
Keyword(s):  
International Trade ◽  
Information Sharing ◽  
Construction Industry ◽  
Digital Technology ◽  
Sri Lankan ◽  
The Past ◽  
Blockchain Technology ◽  
Lack Of Information ◽  
Financial Flow ◽  
Additional Charges

Sri Lankan (SL) construction industry has been trading with overseas suppliers to fulfil the need for material and technology. This process faces many issues due to the poor digitalisation of the industry. The financial flow of international trade is dominated by financial institutions (i.e., banks) and the industry faces many issues e.g., delays, additional charges, complexity, lack of information sharing, and requiring legal assistance. Blockchain Technology (BCT) has emerged as a revolutionary digital technology in the past decade. Key features of BCT i.e., immutability, decentralisation, distributed ledgers, enhanced security, consensus, and speed have been identified to provide solutions for issues in the various industries including the supply chain. Hence this paper aims to investigate the feasibility of using BCT to solve existing issues in financial flow with special reference to the barriers to adopt it in the international trade of the Sri Lankan construction industry. As the data collection method, an expert opinion forum was carried out by involving both international trade experts and blockchain specialists in the Sri Lankan construction industry. Key findings present that BCT can solve issues such as transparency issues and poor information sharing between parties, excessive documentation and complexities, payment delays, and financial costs in the international trade of the SL construction industry. Further, findings revealed that the government’s approval, legal requirements, lack of knowledge and technology, and reluctance to change the industry can act as barriers to adopt BCT in Sri Lanka.

scholarly journals Blockchain and Smart Contracts: A Solution for Payment Issues in Construction Supply Chains

Informatics ◽  
2021 ◽  
Vol 8 (2) ◽  
pp. 36
Author(s):  
Samudaya Nanayakkara ◽  
Srinath Perera ◽  
Sepani Senaratne ◽  
Geeganage Thilini Weerasuriya ◽  
Herath Mudiyanselage Nelanga Dilum Bandara
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Construction Industry ◽  
Primary Data ◽  
Distributed Data ◽  
Smart Contracts ◽  
Blockchain Technology ◽  
Smart Contract ◽  
Industry Applications ◽  
Financial Issues

The construction industry has dynamic supply chains with multiple suppliers usually engaged in short-term relationships. Government legislation, novel types of payment agreements, conventional information technology solutions, and supply chain management best practices have endeavoured to solve payment-related financial issues in the construction industry, which are mainly caused by the complexities of the construction supply chain. Nevertheless, payment-related issues persist as one of the key challenges in the industry. Applications of blockchain technology–a trusted, distributed data storing mechanism–along with smart contracts are gaining focus as solutions for complex interorganisational processes. A smart contract is a self-executing script that codifies a set of rules or agreements between multiple parties and runs across the blockchain network. This paper identifies the suitability of blockchain and smart contract technologies in solving payment issues in the construction industry. An expert forum of construction industry stakeholders served as the primary data collection method through a structured questionnaire. The key finding of the paper is that blockchain and smart contract powered solutions can significantly mitigate the payment and related financial issues in the construction industry, including partial payments, nonpayments, cost of finance, long payment cycle, retention, and security of payments.

A decision-making formula for value engineering applications in the Sri Lankan construction industry

2017 ◽  
Vol 22 (1) ◽  
pp. 77-91 ◽  
Author(s):  
Gayani Karunasena ◽  
Kosala Rajagalgoda Gamage
Keyword(s):  
Decision Making ◽  
Construction Industry ◽  
Cognitive Mapping ◽  
Value Engineering ◽  
Sri Lankan ◽  
Structured Interviews ◽  
Content Type ◽  
Regulatory Bodies ◽  
Research Outcome ◽  
Analyse Data

Purpose The construction industry in many developing countries is reluctant to apply value engineering (VE) due to uncertainty of outcomes. The purpose of this paper is to examine the existing practices of VE techniques and make recommendations to organisations and national construction regulatory bodies, to standardise VE practices. A decision-making formula is introduced to determine profitability of VE applications prior to implementation. Design/methodology/approach A broad literature review and six case study projects that applied VE were selected. Thirty-nine semi-structured interviews were conducted to gather data within cases. Six expert interviews were conducted as confirmatory interviews to clarify and validate research outcome. Content analysis and cognitive mapping were used to analyse data among case studies. Findings Application, knowledge and experience on VE techniques among construction professionals are unsatisfactory. Recommendations include reducing contractor’s design responsibility, introducing proper VE guidelines and statutory regulations. A framework is introduced to assist authorities to standardise application of VE techniques. A decision-making formula is suggested to determine margins of contractor’s portion due to VE techniques and original profits gained. Originality/value The formula can be used as a decision-making tool by construction industry practitioners to determine successfulness of proposed VE techniques, and the proposed framework can be used to guide construction professional bodies to standardise VE practices.

RE-engineered factory acceptance testing under the new normal

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sanduni Peiris ◽  
Nayanthara De Silva
Keyword(s):  
Construction Industry ◽  
Geographical Area ◽  
Test Reliability ◽  
Acceptance Testing ◽  
Sri Lankan ◽  
Content Type ◽  
Future Studies ◽  
Physical Touch ◽  
Two Stages

Purpose Factory acceptance testing (FAT) in the construction industry has been severely hampered due to restrictions in cross-border travel resulting from the COVID-19 pandemic. Consequently, virtual FAT (vFAT) became a popular substitute for physical FAT. However, the credibility of vFAT is being questioned because it was adopted without much scrutiny. Hence, this study is aimed at investigating vFATs and re-engineering the FAT process to suit an effective vFAT environment.Design/methodology/approach A comprehensive literature search on FAT procedures was followed by two stages of expert interviews with eight leading subject experts and a case study. The findings were analysed using code-based content analysis on NVivo software.Findings Strengths of vFATs include “reduction in cost and time consumed”, “flexibility for more participants” and “faster orders”. Most emphasized weaknesses include “lack of reliability” and “lack of technology transfer”. vFAT has mostly increased test reliability by “improving accessibility” and has decreased reliability by “restricting physical touch and feel observation of the equipment”. A four-step vFAT process was developed with a noteworthy additional step called “Pre-FAT Meeting”.Research limitations/implications The scope of this study is limited to the Sri Lankan construction industry. Expansion of the geographical area of focus is recommended for future studies.Originality/value The findings of this study unveil a vFAT process, which is timely and beneficial for construction practitioners to optimize and enhance the effectiveness of vFATs which are currently conducted in a disarranged manner.

scholarly journals Blockchain technology in commercial real estate transactions

2019 ◽  
Vol 37 (6) ◽  
pp. 570-579 ◽  
Author(s):  
Hugo Pieter Wouda ◽  
Raymond Opdenakker
Keyword(s):  
Real Estate ◽  
Design Science ◽  
Science Research ◽  
Commercial Real Estate ◽  
Office Building ◽  
Content Type ◽  
Blockchain Technology ◽  
Transaction Process ◽  
Current Transaction ◽  
Pain Points

Purpose The transaction process of an office building is known to be time consuming and inefficient, in part due to the lack of market transparency. The purpose of this paper is to focus on the development of a blockchain application that can improve the transaction process of office buildings in the Netherlands. Design/methodology/approach Conducting design science research, the current transaction process of an office building and status quo of blockchain technology in real estate is investigated. Subsequently, multiple parties are interviewed to define major pain points within the process. The interview findings are used to design a blockchain solution which overcomes the aforementioned pain points. After designing, the interviewees are asked again to pragmatically validate the proposed model. Findings One of the major pain points identified concerning the transaction process of an office building is that it is difficult to define the characteristics of a property, due to lack of data structure and quality. The proposed application improves the way specific assets are understood by structuring physical and contractual information in one place and guarantees the quality of the data by using the blockchain mechanisms. Practical implications A blockchain application is proposed, which can improve the transaction process of an office building. Originality/value Recent studies indicate that blockchain technology could lead to improvements in efficiency, transparency and therefore trust within the transaction process. Therefore, the proposed application is of value for the future of real estate data management and the transaction process.

scholarly journals A Distributed Energy Trading Authentication Mechanism Based on a Consortium Blockchain

Energies ◽  
2019 ◽  
Vol 12 (15) ◽  
pp. 2878 ◽  
Author(s):  
Zheng Che ◽  
Yu Wang ◽  
Juanjuan Zhao ◽  
Yan Qiang ◽  
Yue Ma ◽  
...  
Keyword(s):  
Renewable Energy ◽  
Rapid Development ◽  
The Public ◽  
Transaction Model ◽  
Authentication Mechanism ◽  
Blockchain Technology ◽  
Transaction Process ◽  
Proposed Model ◽  
Trading Network ◽  
Technology Nodes

With the rapid development of the energy internet, the transaction of distributed renewable energy (DRE) is playing an increasingly important role in the energy market. However, in the transaction model of distributed renewable energy combined with public blockchain technology, nodes in the trading network can join or leave the network at any time without any permission, which hinders the regulation of electricity institutions. Corresponding to the transaction principle, a distributed renewable energy transaction authentication mechanism based on consortium blockchain is proposed in this paper. First, certificate authority nodes were set in the transaction network to provide nodes with access authority by controlling the public keys and private keys of trading participants so that they can complete their identity authentication. Next, essential chaincodes in the transaction authentication were designed and deployed on a Hyperledger Fabric blockchain site, and a simulation experiment of a simple DRE transaction was used to elaborate the details on the transaction process. Finally, the proposed model was evaluated according to its performance and proved to be practical and effective.

scholarly journals Preparing construction supply chains for blockchain technology: An investigation of its potential and future directions

2020 ◽  
Vol 7 (4) ◽  
pp. 547-563 ◽  
Author(s):  
Algan Tezel ◽  
Eleni Papadonikolaki ◽  
Ibrahim Yitmen ◽  
Per Hilletofth
Keyword(s):  
Supply Chains ◽  
Construction Industry ◽  
Distributed Database ◽  
Structured Interviews ◽  
Future Directions ◽  
Profit Margins ◽  
Business Transactions ◽  
Blockchain Technology ◽  
Asset Tracking ◽  
Database Structure

AbstractBlockchain, a peer-to-peer, controlled, distributed database structure, has the potential to profoundly affect current business transactions in the construction industry through smart contracts, cryptocurrencies, and reliable asset tracking. The construction industry is often criticized for being slow in embracing emerging technologies and not effectively diffusing them through its supply chains. Often, the extensive fragmentation, traditional procurement structures, destructive competition, lack of collaboration and transparency, low-profit margins, and human resources are shown as the main culprits for this. As blockchain technology makes its presence felt strongly in many other industries like finance and banking, this study investigates the preparation of construction supply chains for blockchain technology through an explorative analysis. Empirical data for the study were collected through semi-structured interviews with 17 subject experts. Alongside presenting a strengths, weaknesses, opportunities, and threats analysis (SWOT), the study exhibits the requirements for and steps toward a construction supply structure facilitated by blockchain technology.

Selecting suitable procurement system for steel building construction

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
G.P.P.S. Perera ◽  
T.M.M.P. Tennakoon ◽  
Udayangani Kulatunga ◽  
Himal Suranga Jayasena ◽  
M.K.C.S. Wijewickrama
Keyword(s):  
Sri Lanka ◽  
Construction Industry ◽  
Building Construction ◽  
Sri Lankan ◽  
Content Type ◽  
Steel Building ◽  
Selection Factors ◽  
Procurement System ◽  
Procurement Method ◽  
Critical Literature

PurposeThe purpose of this paper is to select a suitable procurement method for steel building construction in Sri Lanka following a systematic method which weigh, both procurement selection factors and existing procurement systems.Design/methodology/approachAn abductive research stance is followed in this empirical study. Procurement selection factors were selected through a critical literature review which was followed by a quantitative questionnaire survey. The collected data were analysed using descriptive statistical analysis and relative important index.FindingsThe critical literature review outlined 46 procurement selection factors, out of which 26 factors were very important in steel building procurement selection. Short construction period and higher constructability of design are ranked at the top with the highest priority rating factors. Management-oriented procurement system was selected as the most appropriate procurement system for steel building constructions within the Sri Lankan context.Research limitations/implicationsThe study is limited to widely use three procurement systems in Sri Lankan construction industry. Yet, the process followed in selecting the most appropriate procurement system could be applied for other contexts. The implications of the study are mainly identifying management-oriented procurement as the most suitable procurement method for steel building construction in Sri Lanka.Practical implicationsThe systematic procedure of procurement method selection for steel building construction may use in the Sri Lankan construction industry to limit the resource loss due to wrong selection of procurement.Originality/valueA study which critically and comprehensively presenting a procurement selection process for steel building construction is not recorded in Sri Lanka prior to this study.

scholarly journals Academic research in emerging knowledge-based economies

2018 ◽  
Vol 8 (4) ◽  
pp. 415-428 ◽  
Author(s):  
Chandanie Hadiwattege ◽  
Sepani Senaratne ◽  
Yasangika Sandanayake ◽  
Nirodha Gayani Fernando
Keyword(s):  
Construction Industry ◽  
Qualitative Interviews ◽  
Academic Research ◽  
Knowledge Dissemination ◽  
Sri Lankan ◽  
Content Type ◽  
Knowledge Based ◽  
Research Collaborations ◽  
Knowledge Based Economy

Purpose Knowledge-based economies are popular in the present world. Simultaneously, universities are becoming more responsible for leading economic development through research. As a key contributor to the national economy, it is vital for the construction industry to move beyond outdated practices, and hence, reviewing the role of academic research in empowering the construction industry with knowledge is essential. The purpose of this paper is to focus on how relevant theories conceptualise the expected role of academic research in the innovative development of an industry and the specific location in the Sri Lankan construction industry. Design/methodology/approach Following a comprehensive literature review, empirical data were collected from the Sri Lankan context with a mixed approach informed by a pragmatist philosophical stance. The perspective of academia and industry practitioners were deductively obtained through surveys and inductively explored through qualitative interviews. Findings This study provides evidence that academic research in Sri Lanka does not contribute effectively to innovative construction management. Due to the absence of industry-focussed knowledge dissemination strategies, the academic–industry relationships are mostly non-research based. The industry lacks in research-informed-decision making, leading to lesser innovations. Research limitations/implications The research conclusions are more applicable to the developing country construction industry contexts. Practical implications The research urges the need for improved academic–industry research collaborations and strategic knowledge dissemination movements. Originality/value The research confirms that academic research is a major integral part of the developing construction industry in a knowledge-based economy. In establishing the expected role of academic research, the research revealed the current practice to be under-located. Hence, the research prescribes the necessary actions; research collaborations in major and subsequent requirements.

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