Saw this and decide to share to the consumption of the teeming blockchain enthusiasts on the forum. The article really touched several aspects in which you can click on the link to have a broader view of specifics being referenced to.
The good news however, is that blockchain is here to stay and the regulation is equally coming real fast and won't be surprised if accounting bodies would begin to issue standards and interpretation in this regard.
Blockchain technology is among the most disruptive forces of the past decade. Blockchain’s power to record, enable, and secure huge numbers and varieties of transactions raises an intriguing question: can the same distributed ledger technology that powers bitcoin also enable better execution of strategic projects in a conservative sector like construction, involving large teams of contractors and subcontractors and an abundance of building codes, safety regulations, and standards?
“Increasingly, we are thinking more carefully about when and where we need to compete and what can we share and collaborate on,” said David Bowcott, global director of growth, innovation, and insight in Aon’s global construction and infrastructure group. Using blockchain to automate the contractual processes and paperwork underpinning these complex projects could save money, free-up valuable resources, and speed up project delivery. (Unless otherwise noted, quotes are from interviews we conducted as part of our research.)
Blockchain-enabled real-estate development projects
In commercial real estate, Amsterdam-based HerenBouw is applying blockchain to a large-scale development project in Amsterdam harbor. According to Propulsion Consulting founder Marc Minnee, HerenBouw’s objective was to set up a blockchain-enabled project management system to make the building development lifecycle more efficient. Minnee’s blockchain application for HerenBouw focused on registering transactions at legally binding moments, where accuracy and an audit trail are essential. “Blockchain provides a platform for clearly cascading work products down the chain and holding everyone accountable for completing key tasks,” Minnee said.
The system’s benefits include timely information, unambiguous communication, and fewer mistakes. “Stakeholders have a clear and evenly distributed incentive to register these facts on-chain: either you won’t get what you ordered or you won’t get paid,” said Minnee. They also develop trust, which reduces friction in their mutual business processes. “Stakeholders spend more time discussing creative design and building method options.”
Blockchain pilots in construction achieve liftoff
Aon, global risk advisor to the construction industry, estimates that 95 percent of building construction data currently gets lost on handover to the first owner. Briq, a California-based blockchain firm, is demonstrating the potential to capture and secure a construction project’s documentation in a blockchain ledger that parties can navigate and give to the owner as a deliverable.
Working on behalf of Minneapolis-based Gardner Builders, Briq developed a “digital twin” of a new office construction with a room-by-room inventory of every asset. “When a product or specification needs to be found in a building, there is finally a place to go to simply search for what is actually in that building,” said Briq CEO, Bassam Hamdy. The blockchain-encoded specifications are granular—paint colors, ceiling fixtures, LED bulbs, door hardware—plus manuals, warranties, and service life in a countdown clock that building owners can monitor....
https://hbr.org/2019/07/how-blockchain-will-change-construction
