Achieving Construction Material Traceability by Leveraging Blockchain Technology

Abstract

Several researchers indicate that construction materials cost more than any other element of a construction project, reaching 50 - 60 % of the total cost. Materials go through different stages and complex exchanges in their life cycles, and the material's tracking is usually conducted manually (paper-based). Besides that, customers have little awareness of where the materials come from and how they are handled. In addition, construction projects often do not have a common system where they can share and manage material traceability information in a secure and trusted way. Many of the material traceability challenges in the construction chain come from relying on traditional tools and manual forms to gather tractable information, enter them in centralized databases, which lack interoperability between systems. Such measures cause a delay in the call back of defective materials, updated transportation information, as well as fraud, a lack of sharing due to privacy and security of information. A lack of focus on tracking within some stages and neglecting reverse logistics may also occur. This study aims to enhance material traceability by implementing blockchain technology, specifically Hyperledger Fabric, as a solution to address these issues. Blockchain, through its immutable, distribute, and secure storage of data, could provide a seamless collaboration platform with no boundaries to achieve traceability and unique material tracking. Also, the consensus mechanism of blockchain will allow all participants to be involved in each transaction, which could increase visibility, communication, quality of materials and reduce fraud, and disputes. A platform has been built according to obtained traceability requirements from the food industry due to the extensive research already conducted in the field along with the background analysis. The validity of blockchain in improving material traceability platform has been tested in a series of use cases and has been evaluated qualitatively to measure to what extent the use cases are workable and therefore usable, and to what extent the use cases are restricted.