CONTRACT THEORY-BASED BLOCKCHAIN REWARD AND PENALTY MECHANISM FOR CONSTRUCTION TENDERING AMONG MULTIPLE STAKEHOLDERS

Zijun Zhan, Yaxian Dong, Daniel Mawunyo Doe, Yuqing Hu, Shuai Li, Shaohua Cao, And Zhu Han

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

With the prosperity of the Web 3.0 era, the construction sector is turning to blockchain-based tendering to address stakeholder conflicts. However, bid rigging among suppliers and information asymmetry between suppliers and the general contractor (GC) potentially undermine the GC utility. To this end, we introduce contract theory into the blockchain-based tendering framework to augment the utility of GC. Simulation results indicate a potential 20.7% profit increase for the GC, due to fostering competition among suppliers, such as material delivery time, compared to traditional blockchain-enabled bidding processes.

Original languageEnglish (US)
Title of host publicationProceedings of the 2024 European Conference on Computing in Construction
EditorsMarijana Srećković, Mohamad Kassem, Ranjith Soman, Athanasios Chassiakos
PublisherEuropean Council on Computing in Construction (EC3)
Pages26-33
Number of pages8
ISBN (Print)9789083451305
DOIs
StatePublished - 2024
EventEuropean Conference on Computing in Construction, EC3 2024 - Chania, Greece
Duration: Jul 14 2024Jul 17 2024

Publication series

NameProceedings of the European Conference on Computing in Construction
Volume2024
ISSN (Electronic)2684-1150

Conference

ConferenceEuropean Conference on Computing in Construction, EC3 2024
Country/TerritoryGreece
CityChania
Period7/14/247/17/24

All Science Journal Classification (ASJC) codes

  • Information Systems
  • Building and Construction

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