Blockchain-Enabled Construction Supply Chain Management: Enhancing Transparency, Traceability, and Contract Automation in Infrastructure Projects

Abstract

Infrastructure construction projects worldwide suffer from chronic cost overruns, material delays, fragmented subcontracting, and recurring payment disputes. Traditional Construction Supply Chain Management (CSCM) relies on centralized paper documentation lacking real-time visibility. This review paper investigates the integration of Blockchain Technology (BCT), Internet of Things (IoT) sensors, and Smart Contracts to resolve operational opacity and contractual friction in mega-infrastructure developments. By systematically examining existing literature, technological frameworks, and empirical case studies, this study demonstrates how decentralized distributed ledgers create an immutable audit trail for material provenance, quality assurance, and financial disbursements. Furthermore, we evaluate permissioned blockchain architectures—specifically Hyperledger Fabric and Enterprise Ethereum—in executing self-enforcing smart contracts linked to physical delivery triggers. Synthesis reveals that blockchain implementation yields up to an 85% reduction in payment verification lags, mitigates material counterfeiting, and lowers arbitration costs. Key technical limitations, including throughput scalability, IoT oracle tamperability, dynamic BIM integration, and legal enforceability, are analyzed. Finally, a strategic roadmap for industry adoption is proposed to guide engineers and policymakers toward automated, transparent, and resilient infrastructure supply chains.

KEYWORDS: Blockchain Technology; Construction Supply Chain Management (CSCM); Smart Contracts; Material Traceability; Infrastructure Transparency; Internet of Things (IoT); Automated Payment; Hyperledger
Fabric.