A conceptual digital business model for construction logistics consultants, featuring a sociomaterial blockchain solution for integrated economic, material and information flows

In this paper, a new digital business model for independent construction logistics consultants, which features the conceptualization of a sociomaterial blockchain solution for integrated information, material and economic flows, is proposed.Theoretically, we offer an understanding of the economic flow, stress the optimization of construction logistics through flow integration, analyse current approaches to understanding blockchain, adopt sociomateriality to envision a suitable blockchain solution, and consider the way blockchain can constitute part of the value proposition of a related digital business model. Methodologically, we systematically reviewed the literature on blockchain-related construction research, and conducted empirical studies on independent logistics consultants in the Swedish context for more than a year. On the one hand, the literature review reveals that core blockchain properties can generate value for construction logistics (e.g. shared ledger structure and reduction of accounting rework) – however, apart from visions and prototypes, there currently exist no use cases, and potential implementational constraints and security issues are limitedly considered. One the other hand, the empirical findings show that independent construction logistics consultants in the sociomaterial Swedish context are suitable candidates for the proposed digital business model. By combining the literature and empirical insights, a permissioned private proof-of-authority blockchain solution integrating the supply chain flows in a generic sociomaterial setting is conceptualized. This solution is then embedded in the value proposition of a digital business model for an independent construction logistics consultant. The proposition includes, among others, improved process management and increased productivity, while the consultants’ competitive advantage through innovation is facilitated. Other business model segments, like key resources, are also updated via the blockchain solution, while some, like channels, are not significantly affected. To not hinder the realization of this digital business model, issues like the lack of blockchain awareness, and the existing power balances within sociomaterial constellations, have to be addressed

Lifecycle-based discretization of bridge performance indicators

The research concerning the performance of large infrastructure, and especially bridges, is extensive. Most prominent topics are those investigating the static, dynamic and seismic performance of bridges and all their constituent parts. The associated performance indicators include mainly the damage degree, bearing structure ductility, fragility frequency, SSI (soil-structure interaction), vulnerability, fragility, and resilience of bridges. Whereas the various indicators can be divided into certain indices groups (cost efficiency, safety, serviceability etc.), a discretization taking into account a holistic approach to lifecycle infrastructure management has not yet taken place. This paper presents such an attempt based on the key bridge performance indicators proposed by researchers in Greece, a country with important experience in this type of infrastructure. Following a targeted literature review, a conceptual schema is presented that showcases the interconnections between fundamental notions of lifecycle project management (namely constructability, sustainability and risk analysis). Then, an integrated discretization of the found grouping performance indices according to the aspects of the schema is depicted. The utility of this discretization is that the key aspects of studied research efforts concerning bridge performance indicators can be incorporated into the interconnection schema, which constitutes the first part of a, currently under development, holistic lifecycle management methodological framework. This incorporation does not only serve as an indicator regularization according to the key aspects of lifecycle project management, but also as a verification test for the schema itself in the case of certain aspects of bridges and large infrastructure in general

Blockchain in building logistics: emerging knowledge, and related actors in Sweden

Large building projects involve complex on-site logistics regarding materials and subsystems, often encompassing hundreds of vehicles handling incoming and outcoming goods and requiring precise timing and space handling. Such a material flow is generally decoupled from the respective economic flow; however, the integration of the two could, among others, foster a holistic overview of the full construction project production, facilitate the collaboration of the supply chain stakeholders, and optimize constructability. Blockchain technologies can enable an integration of these flows by using the distributed ledger facility inherent in a decentralized blockchain network, as well as smart contracts. This paper aims at reviewing the emerging knowledge on blockchain in construction and identifying different constellations of companies and flows in digital building logistics. Theoretically, the paper draws on a sociotechnical approach, which views the development of digitalization as an intertwined social and technical process, where technology is co-shaped with practice. Building on a literature review and interviews and dialogues with actors active in building logistics within Sweden, at least three digital building logistics constellations with the potential to implement blockchain solutions are identified: (1) large contractors integrating building logistics internally, to overcome transaction challenges and maintain power over business-critical supply processes, (2) clients employing independent third-party logistics consultants acting as convenors of different interests in the building logistics setup, and (3) other thirdparty actors such as construction equipment suppliers, offering customised digital building logistics solutions

Game Theory-Based Minimization of the Ostracism Risk in Construction Companies

Strategic and managerial decision-making in an organization can have a crucial effect for the whole entity; however, it rarely involves the organization’s employees evenly at the different organizational levels. The result is—what is addressed in this paper as—the ostracism risk, namely the risk accruing from the lack of satisfaction of underprivileged employees’ groups during the decision-making process. The ostracism risk could jeopardize the organization’s integrity and therefore requires effective treatment. This paper aims at verifying a conceptual approach, which is proposed as a methodology for assessing the probability of organizational cooperation when deciding under risk, thus minimizing ostracism risk. The proposed approach is based on organizational and human resources management (HRM) theories and is contextualized for construction through the understanding of systems theory. The proposed methodology presents a potential modelling via game theory of a medium-sized construction company that is organized according to Mintzberg’s organizational model. The utilization of the bounded Pareto distribution is presented as an approach of the model’s probabilistic processing, and the potential for estimating the probabilities to adopt a favorable cooperational decision is verified. The paper concludes with the reference to the next steps required for the methodology’s validation and further improvement

BLogCHAIN: proof-of-concept and pilot testing of a blockchain application prototype for construction logistics in Sweden

Blockchain technology has a potential for construction logistics, also within Sweden. In this paper, a proposal of a blockchain system and its practical implementation is presented (the BLogCHAIN prototype). Its was preliminarily tested during the early construction of a school in Sweden, in November-December 2020. Methodologically, we reviewed studies on blockchain for construction logistics, interviewed the BLogCHAIN testers (suppliers and contractor’s operatives), and understood the test’s practical outcomes through sociomateriality. Our results include the confirmation of envisioned benefits when implementing BLogCHAIN (e.g. reducing accounting rework), but also a simplification from its initial conceptualization, mainly due to rigidly established work practices

Blockchain in construction – hype, hope, or harm?

Business and public interest and investments in digital ledgers, smart contracts and virtual currencies such as bitcoin, has skyrocketed. Blockchain is indeed a hyped technology – and should therefore raise healthy skepticism. During construction production, projects and the involved companies take on a disintegrated economic flow and allocation of economic resources; these include supplies of materials and services, payments, accounting tasks, and other economic decisions, that are often treated second-hand by site management, subcontractors, transport companies, retailers and material suppliers. Within such a situation, blockchain technologies can maybe create value for stakeholders in handling this economic flow and integrating it with other information and material flows. So, in this sense, blockchain represents a hope for construction; however, this paper critically scrutinizes blockchain for construction, in trying to answer the question whether it indeed constitutes hope, or it is harmful. The paper will report from an ongoing study and development project aiming at implementing a blockchain prototype for digitalized construction logistics at a large building site. A literature review, undertaken in several iterations from May 2018 to summer 2019 and following the emergence of the hype for blockchain, reveals visions and a few prototypes of related systems for construction. Theoretically, the paper adopts a sociomaterial approach, appreciating that blockchain is as much about social interaction and development of trust, as it is about digitally facilitating economic transactions. Several critical issues threatening to jeopardize the adoption of blockchain are analyzed in the paper, such as the protection of the economic data during transactions, permission access control which only allows a few people to enter the system while still requiring a minimum of trust between those already inside the system, and possible financial speculation on the utilized cryptocurrencies. The way construction stakeholders can mitigate such issues, thus enabling blockchain to become a realized hope rather than harming the sector, is discussed. Probably the largest risk relates to unrealistic hopes of full transparency in open blockchain systems, potentially making the systems too vulnerable to external intervention and even speculation. Permissioned systems with some level of hierarchy appear to be a feasible compromise solution mitigating the potential harm

Project performance appraisal frameworks as blueprints for bridge quality control

Various project performance appraisal frameworks (PPAFs) have been established in practice for engineering projects of both the public and private sector. Their aim is to measure the targeted and tangential attributes of project performance and conformance to specified quality standards. In this paper, the following PPAFs are summarily presented: CONQUAS and BDAS of Singapore, PASS and BAM of Hong Kong and SBTool of Portugal, Spain and Italy. Then, the current state of research regarding the key bridge performance indicators (KBPIs) is noted and considerations regarding the possible adaptation of a PPAF-inspired blueprint for a general quality appraising framework for roadway bridges take place. Concluding, the importance of lessons learned and best practices in the establishment of a novel conceptual and computational framework is discussed

Blockchain in construction logistics: state-of-art, constructability, and the advent of a new digital business model in Sweden

Research on blockchain technology implementation within civil engineering has mainly focused on smart contracts, and interfaces with information systems. However, the use of blockchain for the integration of the material and economic flows within construction supply chain – thus creating a new business model – to enhance a construction project’s production, logistics management, and constructability, has not been investigated. In this paper, this shortage is documented through a comprehensive literature review. Then, the potential of Swedish independent third-party logistics consultants as a fertile ground for such a business model, is examined. Finally, conclusions about the pursuance of this potential paradigm shift are drawn

The RISCONA system: constructability appraisal through the identification and assessment of technical project risks sources

In construction management, constructability and risk analysis have never been methodologically and computationally integrated, leading to non-optimal construction knowledge implementation, stakeholders’ cooperation, choice of construction method, and risk-driven perception of key managerial concepts. In this paper, a methodology unifying constructability and risk analysis is delineated, where: (1) risk sources are derived with unsupervised machine learning, (2) actual projects’ data are collected and suitably correlated with the derived risk sources, and (3) the appraisal of constructability through the data-correlated risk sources is modelled with supervised machine learning. As the culmination of this modelling, the prototype software application RISCONA (RIsk Source-based CONstructability Appraisal) is presented, as a tool that can help construction managers in their decision-making regarding constructability and risk analysis