Re-imagining trustworthy construction ecosystems with emerging technologies
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Abstract
In his keynote at CBC 2023, Max Surf from KPMG Australia elaborates on the transformative potential of blockchain technology in the construction industry. Surf begins by highlighting the urgent need for quality and sustainability in construction, citing the Grenfell Tower disaster as a stark reminder of what can go wrong. He emphasizes that as global construction activity is set to increase dramatically, ensuring quality becomes more challenging yet imperative.
Surf discusses the Australian context, where significant portions of medium to high-rise buildings have major defects, causing costly remediations. This issue of quality is not isolated to Australia but is a global concern, especially with the shift towards offsite manufacturing and Design for Manufacture and Assembly (DfMA) to enhance speed, quality, and sustainability in construction.
The construction industry's complex ecosystem of stakeholders poses additional challenges in aligning incentives and actions towards shared goals. Surf proposes the use of a "Building Trustworthy Indicator," a commercial tool developed with the state government in Australia, which assesses construction projects based on three criteria: the participants (trusted participants' financial and conduct history), the materials used, and the construction process itself. This tool aims to provide a simple yet comprehensive trust indicator to consumers, regulators, financiers, and insurers, enabling informed decisions and fostering a proactive and data-driven regulatory environment.
Surf underscores the critical role of blockchain in achieving this vision. Blockchain's capacity for ensuring data integrity, transparency, and a shared view of reality among all stakeholders in the construction process stands out as a fundamental enabler of change. He posits that blockchain can help align the diverse incentives within the construction ecosystem, promoting quality, sustainability, and efficiency.
By collecting and securely storing data on who is involved in a construction project, what materials are used, and how the building is constructed, blockchain provides a foundation for trust. This technology not only enables a more transparent and efficient construction process but also paves the way for future automation and smart contracts, which could revolutionize financing, maintenance, and sustainability practices in the industry.
Max Surf's presentation at CBC 2023 articulates a compelling case for blockchain's role in transforming the construction industry. By fostering a shared, transparent data environment, blockchain technology has the potential to align stakeholders' incentives, enhance quality and sustainability, and prepare the industry to meet its future challenges head-on.
Keywords
Blockchain, Construction Industry, Quality Assurance, Building Trustworthy Indicator, Sustainability.
