Bridging Transparency Gaps in Construction Claims through Blockchain Integration

Abstract

The construction industry plays a vital role in Pakistan’s economy, yet it continues to face persistent challenges in claim administration that hinder project performance, transparency, and trust among stakeholders. This study addresses these challenges by identifying the principal shortcomings of conventional claim management systems and developing a blockchain-based claims management application to improve security, traceability, and procedural efficiency. A three-stage research design was adopted. First, a systematic literature review was conducted to identify deficiencies in traditional claim management practices. This was followed by semistructured interviews with fifteen contract specialists involved in extension of time (EOT) claims to validate and refine the identified issues. Second, a decentralized application (DApp) was developed using React.js front-end and Solidity-based smart contracts and deployed on the Polygon test network to enable faster and more cost-effective transactions. Third, the developed system was evaluated through expert review involving 32 participants drawn from contracting, consulting, client organizations, and academia, followed by statistical analysis. The findings indicate that the proposed blockchain-based claims management system (B-CMS) improves data integrity, transparency, traceability, and timeliness in claim administration compared with traditional approaches. However, the system is not intended to replace professional judgment in highly subjective claim situations and is not suitable for capturing oral instructions or unstructured design and work-pattern changes. Despite these limitations, the study demonstrates the feasibility of B-CMS for construction claim administration in Pakistan and offers insights that may be relevant to comparable project environments internationally.