Dispute Prevention in Construction Megaprojects using Smart Legal Contracts: A Case Study
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Abstract
The construction industry faces frequent and costly disputes, causing delays and financial setbacks. Dispute avoidance aims to minimize conflicts early on by addressing the potential sources of conflict at an early stage. This study suggests using blockchain technology and smart legal contracts to proactively prevent disputes and avoid conflicts. The proposal involves automating common dispute-prone contract clauses in construction megaprojects through blockchain-based smart contracts. A detailed case study on a construction megaproject illustrates how the proposed system can prevent recurring disputes arising from contract misinterpretations. Some of the potential benefits from this application include savings in cost and time, which would otherwise be incurred in dispute resolution measures along with enhanced collaboration and transparency in the contracting process.
Keywords
Blockchain, Conflict Management, Dispute Prevention, Construction, Smart Contracts.
