Project Delivery and the Crypto Commons
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Abstract
Daniel Hall and Jens Hunhevicz's CBC 2023 keynote elaborates on the integration of blockchain technology with collaborative project delivery models, particularly Integrated Project Delivery (IPD), in the construction industry. Their discussion revolves around decentralizing project delivery systems to enhance collaboration, manage complexity more effectively, and address the industry's inherent challenges related to coordination and trust among stakeholders.
The keynote highlights the transformation in project delivery approaches from traditional, centralized models towards more collaborative, decentralized systems. This shift is primarily driven by the need to manage complex projects more effectively. Hall and Hunhevicz argue that decentralized systems, exemplified by IPD, offer a framework for better handling complexity through enhanced collaboration and shared decision-making processes. They explore the concept of projects as common pool resources, drawing parallels between the governance mechanisms in IPD and those governing commons, as outlined by Elinor Ostrom's principles.
A significant part of their discussion focuses on blockchain technology's potential to further decentralize project governance. Blockchain's attributes, such as transparency, immutability, and the ability to facilitate peer-to-peer transactions without central oversight, are identified as key enablers for developing a new paradigm for project delivery termed "Project Delivery on the Crypto Commons." This concept envisions leveraging blockchain to encode governance mechanisms that align with Ostrom's principles for managing common pool resources, thus fostering a more collaborative, efficient, and trust-based project delivery environment.
The researchers present a conceptual framework linking blockchain with collaborative project delivery, identifying specific blockchain applications and mechanisms that could support decentralized governance in construction projects. These include identity verification, resource pool tokenization, transparent monitoring, and smart contract-based coordination mechanisms. They suggest that such blockchain-enabled governance structures could improve the efficiency and outcomes of construction projects by aligning the economic and governance systems with the industry's decentralized nature.
Despite the promising vision outlined in their keynote, Hall and Hunhevicz acknowledge the challenges and complexities involved in implementing such a transformative approach. They highlight the need for further research to operationalize this concept and address practical and technical hurdles.
The keynote concludes by emphasizing the potential of blockchain technology to complement and enhance existing collaborative project delivery models. By aligning with the industry's decentralized structure, blockchain could enable more resilient, efficient, and trust-based coordination mechanisms, thereby advancing the construction industry's digital transformation.
Keywords
Blockchain Technology, Integrated Project Delivery (IPD), Decentralized Project Governance, Common Pool Resource Theory, Construction Industry Digital Transformation.
