Blockchain-enabled cash flow management system in offsite construction projects

Offsite construction (OSC) technology provides substantial merits over traditional methods, such as shorter schedules and reduced waste. Nonetheless, its implementation is constantly hindered by financial barriers. Existing studies on overcoming OSC financial barriers were limited to cost estimation and factorial analysis. At the same time, the need for a cash flow system to automate progress payments and integrate OSC participants persists. This paper contributes to the body of knowledge by proposing a cash flow management system for OSC projects based on blockchain and building information modeling technologies. The proposed system supports many features, including automated financial transactions, flexibility in applying various procurement systems, facilitation of possible claims (i.e., extension of time and liquidated damages), and secure and immutable recording of all transactions. A proof-of-concept method is used to showcase the applicability of the proposed system by developing five case scenarios. The findings prove the system's capabilities to provide a secure platform for financial transactions among OSC participants without third-party involvement.