Construction has always been a collaborative process involving a certain group of participants. Throughout history, communication technology has a significant impact on the relationships among those involved. Right now, it is often cited as ripe for disruption and in the same breath criticized for being slow to embrace the change it apparently so desperately needs.
Smart contracts have the potential to increase transparency, accountability and provide for a better control of the project in general. A more open building process will eventually lead to a better alignment of industry and client interests while minimising disputes and risks. If we take into consideration the contemporary structure of the construction market (many joint projects, shared equipment etc), we can see that the Blockchain could allow for a faster and more data-driven decision-making process, similarly to what it’s already done with the use of construction software. On top of that, updates about the project could be delivered to everyone in real-time (eg delivery of materials on site). This would considerably decrease project delays and the need for rework (30% efficiency rate - 10% rework in construction at the moment).
Right now, all funds go through banks. The main problem is that with current banking system it is not clear, how these funds are spent. Transactions history is confidential, so there is no transparency. Money can be spent however developer wants. Smart contracts protect money paid by investors. They provide the transparency, because investors can see all transactions that go through the system.
Read the whole article in Steemit:
https://steemit.com/smartcontracts/@smartz/how-can-smart-contracts-impact-the-construction-market
