Non-payments and time delays due to payment issues are widespread in the construction industry. Delays cost time and sometimes even cause catastrophic project failure. These factors must be eliminated to derive maximum efficiency from deployed capital. AECROS development of blockchain contracts allied with modular construction provides new and exciting solutions to these questions.
Blockchain enabled contract management
Security is blockchain’s main strength by allowing digital information to be distributed without risk of being hacked or stolen. Smart contracts are blockchain based agreements similar to real life contracts but in digital form. The main feature is established trust between parties through automatically executed payment for proof-of-work submitted.
A smart contract protects clients, contractors, subcontractors and suppliers against insolvency of late payments. They can even be intertwined with each other to create automatic top-down flow of payments for completed milestones, for example, a verified building completion triggers an automatic payment to the general contractor that triggers a subcontractor and suppliers’ auto payment. This sets the precedent for trustworthy contracts while removing the need for middlemen and payment and cash flow problems.
AECROS plans include the development of new blockchain contracts for smart payment in the construction industry. Payment guarantees and disbursement applications will create speed and reliability in these problem areas. Infrastructure service, Blockchain and other Software are required integrate to complete the system
AECROS system architecture containing blockchain and software form the foundation for system development. Finally, based on the system architecture, a prototype system is developed using both AECROS construction system modules and the BEX. This system can improve certainty and efficiency of the financing and construction logistics eliminating trust issues by enabling automated contracts in construction.
Future development will continually improve these systems and further streamline Auto Construction. For more insight into the problems facing construction today: