Blockchain and lean construction: an exploration of bidirectional synergies and interactions

Journal article, 2023

Blockchain is a form of digital distributed ledger, referring to databases decentralized across numerous users, facilitating peer-to-peer transactions by eliminating or reducing the need for intermediaries to conduct, validate, or authenticate them. It is characterized by transparency, data immutability and traceability, and consensus processes validating cryptographic signatures. The architecture, engineering, construction, and operations (AECO) industry is increasingly interested in blockchain. Lean construction (LC), a value-focused production management concept, has long been challenging conventional project management practices in AECO. Lack of conversation, however, surrounds whether and how blockchain can (or should) impact LC developments – and vice versa. And if that impact exists – is it significant enough to create value for the related stakeholders? This article offers a conceptual synergistic framework of interactions between blockchain and LC, which can facilitate an understanding on whether there is value in their combined use. A systematic literature review and analysis serve as the foundation of this research. The findings show that LC can be facilitated by blockchain through trust building for relational procurement, data recording for some key activities (e.g. offsite construction, Last Planner System), and streamlining some non-value activities (e.g. payments). In return, blockchain can gain relevance for project management practices when it is defined and implemented in a LC framework. Also, LC can help improve blockchain-related workflows and decision making.