Blockchain in Project Management

Rajkumar Palaniyappan (2108839)
University Canada West
MBAR 661: Consulting / Research Project
ONS-Winter23-01
May 11, 2023
Dr. Hamed Taherdoost

Abstract
Project management involves organizing resources and activities to achieve specific
objectives within time and budget. However, conventional project management methods can be
inefficient, error-prone, leading to communication challenges and disputes. This research paper
proposes new framework called Smart Contract Project Management Framework (SCPMF) and
explores the advantages and obstacles associated with implementing it, combining Rule Engines
and blockchain technology to improve project management transparency, accountability, and
security. The paper provides an overview of SCPMF and its applications in project planning,
resource management, and contract management while discussing the benefits and challenges of
implementing SCPMF in project management. The paper concludes by explained the limitations
in future research and highlights the potential of SCPMF to revolutionize project management.
Keywords— Smart Contract, Project Management, Real-Time Monitoring, Automated
Contract Execution, Immutable Record-Keeping, Blockchain, Rule Engine, Smart Contracts.
Introduction
Effective project management is essential for completing projects in diverse sectors
(Kerzner, 2018). It involves the application of knowledge, skills, tools, and techniques to meet
project requirements and achieve project objectives within defined constraints (Project
Management Institute, 2017). Effective project management enables organizations to plan,
execute, and control projects systematically and efficiently, ultimately achieving desired
outcomes. The field of project management has evolved significantly over the years, driven by
technological advancements, changing business dynamics, and the increasing complexity of
projects. Today, project management encompasses various industries, including construction,
information technology, healthcare, manufacturing, and more (Müller & Turner, 2019). However,

regardless of the industry, project management's fundamental principles and best practices remain
consistent, focusing on delivering projects on time, within budget, and to stakeholders' satisfaction
(Kerzner, 2018).
Any project's success relies heavily on managing various aspects, including scope, time,
cost, quality, resources, risks, and communication (Project Management Institute, 2017). Project
managers are responsible for planning, organizing, and controlling these elements to ensure
success. They must possess a diverse skill set that enables them to lead cross-functional teams,
make informed decisions, manage conflicts, and adapt to changing circumstances (Project
Management Institute, 2017). In addition to traditional project management approaches, new
technologies have significantly impacted the field. One such technology that has gained significant
attention is blockchain. Originally introduced as the underlying technology for cryptocurrencies
like Bitcoin, blockchain has demonstrated its potential to revolutionize various industries,
including project management (Swan, 2015).
Blockchain technology provides a decentralized, transparent, and secure platform for
recording and verifying transactions (Nakamoto, 2008). It creates a distributed ledger that multiple
parties can access and update, eliminating the need for intermediaries and providing a tamperproof record of all transactions (Nakamoto, 2008). This technology can transform project
management by enhancing transparency, improving accountability, reducing fraud, and increasing
efficiency (Drescher, 2017).
In recent years, researchers and practitioners have explored the application of blockchain
technology in project management (Müller & Wüst, 2018). By leveraging blockchain, project
managers can benefit from enhanced data security, improved stakeholder collaboration,
streamlined processes, and automated execution of smart contracts (Zheng et al., 2017). Smart

contracts, self-executing digital contracts coded with predefined rules and conditions, can
automate various project management processes, such as contract administration, payment
processing, and milestone tracking (Szabo, 1997).
While the potential of blockchain technology in project management is promising, some
challenges and considerations need to be addressed. These include scalability, interoperability with
existing systems, legal and regulatory implications, and the need for technical expertise (Böhme
et al., 2015). Research and development efforts are underway to overcome these challenges and
unlock the full potential of blockchain in project management (Bogner et al., 2019). This paper
aims to provide a comprehensive overview of project management, including its principles,
processes, challenges, and opportunities. In addition, it will explore the application of blockchain
technology in project management and discuss the benefits, limitations, and prospects of
integrating blockchain into project management practices. The findings of this study will
contribute to the growing body of knowledge on blockchain in project management and provide
insights for practitioners and researchers alike.
Problem Statement
The construction industry is a vital sector that contributes significantly to global economic
growth (Mandzuk & Ruikar, 2020). However, it is notorious for project delays, cost overruns, and
disputes, leading to significant losses and negative stakeholder impacts (Wang et al., 2020). The
traditional project management approach, which relies heavily on manual processes, often fails to
address these challenges effectively. Lack of transparency, communication, and trust among
stakeholders are vital issues affecting project management in the construction industry (Odeh &
Battaineh, 2021).

Blockchain technology has emerged as a smart solution to these challenges. Blockchain
technology offers unique features such as decentralization, immutability, and intelligent contract
automation, which can improve transparency, data management, collaboration, and trust among
project stakeholders (Wang et al., 2020). However, implementing blockchain technology in the
construction industry is not without challenges. According to Mandzuk and Ruikar (2020), a
significant challenge in adopting blockchain technology in project management is insufficient
stakeholder awareness and comprehension. Additionally, the lack of standardization and
interoperability of different blockchain platforms and the limited scalability of blockchain
technology are significant challenges that need to be addressed (Odeh & Battaineh, 2021).
Furthermore, managing complex projects often involves multiple stakeholders with different roles
and responsibilities, leading to communication challenges and potential disputes (Wang et al.,
2020). Furthermore, traditional project management methods often rely on manual interventions,
which can be inefficient and prone to errors (Odeh & Battaineh, 2021).

Objective
The main objective of this research project is to increase the adoptability of blockchain
technology in project management by addressing the challenges faced in traditional project
management and promoting the standardization of project management practices within the
blockchain context. This will be achieved by enhancing stakeholders' awareness and understanding
of blockchain technology, providing guidelines and best practices for implementing project
management processes within the blockchain ecosystem, introducing the Smart Contract Project
Management Framework (SCPMF) as a solution, and offering implementation guidance for
organizations. The project also aims to foster collaboration and knowledge sharing among project
management professionals, researchers, and industry experts to facilitate the exchange of insights
and experiences in utilizing blockchain for project management. By achieving these objectives,
this research project aims to contribute to the broader adoption of blockchain technology in project
management, enhancing transparency, efficiency, and trust in project execution while delivering
valuable insights for practitioners and researchers in the field.
Blockchain Technology
Blockchain technology has emerged as a transformative innovation with the potential to
revolutionize various industries, including project management in the construction sector. The
concept of blockchain originated with the introduction of Bitcoin, a decentralized digital currency,
in 2008 by an anonymous person or group known as Satoshi Nakamoto (Nakamoto, 2008).
Blockchain technology was initially designed as a secure and transparent ledger system to record
and verify Bitcoin transactions without the need for intermediaries, such as banks or governments.
At its core, blockchain is a distributed ledger that operates on a network of computers, known as
nodes, where each node stores an identical copy of the blockchain. The blockchain consists of a

series of blocks, each containing a list of transactions (Ammar, 2019). These transactions are
grouped, verified, and added to the blockchain through a consensus mechanism, such as proof of
work or proof of stake.
The real potential of blockchain lies in its ability to provide a decentralized, transparent,
and secure platform for recording and verifying various types of transactions and data. By
eliminating the need for intermediaries and central authorities, blockchain technology offers a
trustless environment where participants can interact directly, reducing the reliance on third parties
and enhancing transparency and accountability (Majumder, 2019). As a result, blockchain
technology can offer several benefits in the construction industry, where project delays, cost
overruns, and disputes are common challenges. One of the key advantages is increased
transparency, as all stakeholders can have real-time access to project information, including
contracts, payment records, and project progress. This transparency reduces information
asymmetry and fosters stakeholder trust (Zhang et al., 2020).
Furthermore, blockchain can streamline processes and reduce inefficiencies by automating
tasks using smart contracts. Smart contracts are self-executing digital contracts that contain
predefined rules and conditions. They automatically execute transactions and trigger actions when
specific conditions are met, eliminating the need for manual intervention, and reducing the
potential for human error (Wang et al., 2020). Another significant advantage of blockchain in the
construction industry is improved data security. Blockchain's decentralized nature and
cryptographic algorithms make it highly resistant to tampering and fraud. In addition, data stored
on the blockchain is distributed across multiple nodes, making it difficult for malicious actors to
manipulate or alter the information. This enhanced security can protect sensitive project data and
mitigate the risk of data breaches (Zhang et al., 2020). As blockchain technology continues to

evolve, its future capabilities are poised to expand further. One area of development is the
integration of blockchain with other emerging technologies, such as the Internet of Things (IoT)
and artificial intelligence (AI). The combination of blockchain, IoT, and AI can automate data
collection, analysis, and decision-making processes in construction projects, leading to increased
efficiency and optimized resource utilization (Wang et al., 2020).
Moreover, ongoing research and development efforts are focused on addressing
blockchain's scalability and interoperability challenges, which currently limit its widespread
adoption. Solutions such as sharding, sidechains, and layer two protocols aim to enhance the
capacity and speed of blockchain networks, enabling them to handle a higher volume of
transactions and support complex applications (Swan, 2015). Blockchain technology can
potentially transform project management in the construction industry by improving transparency,
streamlining processes, enhancing data security, and fostering trust among stakeholders. Its ability
to automate tasks through smart contracts and provide a tamper-proof and decentralized data
storage and verification platform holds significant promise. With further advancements and the
integration of complementary technologies, blockchain's future capabilities in project management
are likely to expand, enabling more efficient and collaborative construction projects.
Blockchain in Project Management
The construction industry has attracted significant attention in research as a potential
beneficiary of blockchain technology for improving project management. Researchers have
proposed various frameworks and systems that leverage blockchain technology to address the
industry's challenges and enhance efficiency. One example is the framework Ginzburg (2020)
suggested, which combines blockchain with Building Information Modeling (BIM). By integrating
blockchain technology with BIM, project management efficiency can be improved, and

construction disputes can be reduced. In addition, the transparency and immutability of blockchain
can enhance collaboration and trust among project stakeholders by providing a secure and reliable
platform for sharing and accessing project information. Another proposal by Korkmaz and Arditi
(2019) introduces a decentralized platform that utilizes blockchain for information exchange and
contract execution among project stakeholders. By leveraging blockchain's distributed ledger
technology, the platform can facilitate secure and transparent communication, streamline contract
processes, and reduce reliance on intermediaries. This decentralized approach can enhance project
management efficiency and minimize the risk of disputes.
Iyer and Gupta (2020) proposed an Intelligent Contracting System that utilizes smart
contracts to automate contract administration processes in the construction industry. By leveraging
the programmable nature of smart contracts, routine tasks such as payment processing, milestone
tracking, and change order management can be automated, reducing manual intervention and the
potential for errors. This automation can enhance project management efficiency and streamline
contract administration. Building upon these existing proposals, our research paper presents a
framework for the negotiation and execution of smart contracts using blockchain technology in the
construction industry. The framework incorporates various features, including access controls,
privacy, and security, to ensure the efficient and secure management of construction projects.
Furthermore, by utilizing a permissive private blockchain network, we aim to enhance
collaboration and efficiency while minimizing the risk of disputes. The integration of blockchain
technology into the construction industry offers several potential benefits. Firstly, it can improve
project management efficiency by automating contract processes, streamlining communication,
and enabling real-time project progress tracking. Furthermore, this automation reduces the reliance
on manual processes, improves accuracy, and accelerates project timelines.

Secondly, blockchain technology can minimize conflicts by providing a transparent and
immutable record of project data and transactions. This transparency reduces the potential for
disputes, and fosters trust among project stakeholders. Additionally, the decentralized nature of
blockchain removes the need for intermediaries, reducing the likelihood of discriminatory or unfair
practices. However, it is essential to note that while the potential benefits of integrating blockchain
technology into the construction industry are promising, additional research is needed to
understand and realize these advantages fully. Further studies can explore scalability,
interoperability, and regulatory considerations to ensure the successful implementation of
blockchain-based solutions in the construction industry.
Methodology
The proposed Smart Contract Project Management Framework (SCPMF) development
involved several stages, including requirements gathering and conceptual design (Korkmaz &
Arditi, 2021; Samper-Zapater et al., 2020; Wang et al., 2020). The methodology used to develop
the SCPMF was an iterative approach that involved continuous feedback and refinement of the
framework. The implementation of the SCPMF was not covered in this research paper. The
methodology used for requirements gathering involved identifying the typical project stages in
project management and the challenges faced by stakeholders in the construction industry
(Korkmaz & Arditi, 2021; Samper-Zapater et al., 2020; Wang et al., 2020). The conceptual design
involved the creation of smart contracts for each project stage and the integrating of a Rule Engine
to execute the contracts automatically. The SCPMF also utilized several distributed databases in
the blockchain network, such as vendor distributed database, contractor-distributed database, and
other related shareable distributed databases.

The SCPMF will be designed using tools and programming languages, including Solidity
for innovative contract development, Node.js for server-side scripting, and React for the user
interface (Korkmaz & Arditi, 2021; Samper-Zapater et al., 2020; Wang et al., 2020). Solidity is
one of the programming languages for creating smart contracts with the help of the Ethereum
blockchain. Node.js is a platform that allows for creating server-side applications using JavaScript.
Finally, the React library is a JavaScript library for constructing user interfaces.
Proposed Smart Contract Project Management Framework
Project management involves coordinating various stakeholders and resources to achieve
project goals within constraints such as time, budget, and scope (Kerzner, 2018). Using SCPMF
in project management could significantly improve project outcomes by streamlining project
processes and increasing project efficiency (Wang et al., 2021). However, the implementation of
SCPMF in project management is not without challenges. One of the main challenges is the
scalability of blockchain technology, which limits the number of transactions that can be processed
per second (Zohrevandi & Arora, 2021). Another challenge is the interoperability of different
blockchain platforms, which can hinder the integration of SCPMF with existing project
management systems (Gulmez & Kocaman, 2021). Furthermore, regulatory compliance is a key
concern when using blockchain technology, as the legal status of smart contracts varies across
different jurisdictions (Cocco et al., 2020).
Smart Contract Project Management Framework (SCPMF) is a proposed conceptual model
that combines intelligent contract technology with project management principles to enhance
project management transparency, accountability, and security. This framework has the potential
to revolutionize project management by enabling real-time monitoring of project progress,
automated contract execution, and immutable record-keeping (Gai et al., 2018; Botta et al., 2019).

Blockchain technology has been selected as a critical enabler for SCPMF because it ensures trust,
security, and efficiency in project management. The benefits of blockchain technology in project
management include enhanced transparency, accountability, and security. Additionally,
blockchain technology can address the limitations of traditional project management approaches'
limits and improve project management processes' efficiency (Alqerm & Al-Husban, 2021).

Figure 1
The proposed Smart Contract Project Management Framework in Construction Industry

The proposed SCPMF identifies all standard project stages in project management and
creates smart contracts whenever someone initiates the process, and then these contracts are
automatically executed using a Rule Engine (Farooq et al., 2020). A Rule Engine is a software tool
used to maintain and execute rules. It is designed to automatically apply the appropriate rule(s) to
a given data set based on the defined criteria.
In SCPMF, the Rule Engine maintains various rules to execute smart contracts when
specific criteria are met. For example, if a contract states that a particular task must be completed
by a deadline, the Rule Engine would monitor the task's progress and trigger the execution of the
smart contract when the deadline is approaching (Jiang et al., 2020). In SCPMF, a Rule Engine
guarantees the automatic and timely execution of smart contracts, thereby decreasing the need for
human intervention and mitigating the potential for disputes. To implement SCPMF, various
programming frameworks are available, such as Ethereum, Hyperledger Fabric, and Corda.
Ethereum is an open-source blockchain platform that enables the development of decentralized
applications using smart contracts. Hyperledger Fabric is a private blockchain platform that allows
multiple organizations to collaborate on a single project. Corda is a distributed ledger technology
platform for enterprise use, allowing secure and confidential transactions among various parties
(Schoenherr et al., 2019).
In SCPMF, intelligent contracts are integrated with many distributed databases in
blockchain, such as vendor-distributed databases, contractor-distributed databases, and other
related shareable distributed databases. This integration allows all stakeholders to access relevant
project data based on their roles, ensuring that sensitive data remains private and secure (Jiang et
al., 2020). Moreover, this integration enhances collaboration and trust among stakeholders. All

parties can view and track project progress in real-time, reducing the chances of disputes and
improving overall efficiency.
Smart Contracts
Smart contracts are self-executing computer programs that enable the automatic
enforcement of contract terms, providing a reliable mechanism for executing contractual
obligations. They are typically stored on a blockchain platform, ensuring secure and transparent
execution of the contract without the need for intermediaries (Liu, Li, Li, Li, & Li, 2021). Using
smart contracts in project management can ensure reliability by minimizing the chances of disputes
and errors, providing a reliable mechanism for executing contractual obligations, and increasing
stakeholder trust (Ghosh & Saha, 2018). Smart contracts are coded with specific rules and
conditions, and once these conditions are met, the agreement is automatically executed. This
eliminates the need for manual intervention, reducing the chances of human error and disputes
(Iyer & Gupta, 2020). In addition, smart contracts can create milestones, disbursements, and
payments automatically executed when specific conditions are met, reducing the risk of cost
overruns and delays (Bogner, Heimerl, & Wagner, 2019).
Moreover, intelligent contracts enhance transparency by enabling all stakeholders to view
and track project progress in real-time, providing a reliable source of project information and
preventing delays. This increased transparency and accountability can enhance stakeholder trust
and reduce the risk of disputes, ensuring the reliability of the project management process (Dias
& Arditi, 2019). Using smart contracts in project management can lead to significant cost savings,
improved collaboration, and increased efficiency. These benefits are achieved through the reliable
and transparent execution of contractual obligations, ensuring that all stakeholders work towards
the same goals and that project outcomes are timely and cost-effective (Mousavi & Azar, 2019).

Smart Contract Project Management Framework (SCPMF) is a proposed conceptual model
that combines smart contract technology with project management principles to enhance project
management transparency, accountability, and security. SCPMF has the potential to revolutionize
project management by enabling real-time monitoring of project progress, automated contract
execution, and immutable record-keeping (Bogner, Heimerl, & Wagner, 2019; Iyer & Gupta,
2020). Smart contracts are self-executing computer programs that automatically enforce the terms
of an agreement. They are typically stored on a blockchain platform, enabling secure and
transparent execution of the terms of the contract without the need for intermediaries (Liu, Li, Li,
Li, & Li, 2021). Smart contracts are coded with specific rules and conditions, and once these
conditions are met, the contract is automatically executed. As a result, they can potentially
revolutionize the way business is conducted by enabling faster, cheaper, and more secure
transactions (Ghosh & Saha, 2018).
Blockchain technology adoption is essential for successful implementation in various
sectors and project management (Mukhlash & Kertajaya, 2021). The study emphasizes the need
for decision-makers to select an appropriate adoption framework based on the conformity of its
features with the business sector. In the context of project management, smart contracts can be
utilized to automate contract administration processes and reduce the need for manual intervention,
minimizing the chances of disputes and improving the overall efficiency of the project (Iyer &
Gupta, 2019). However, the automation of smart contracts can be complex, requiring the
development of specific criteria and conditions for their execution. This is where Rule Engines
come into play. A Rule Engine is a software tool that maintains and executes rules automatically.
Based on the defined criteria, it is designed to apply the appropriate rule(s) to a given data set. In
project management, a Rule Engine can be used to automate the execution of smart contracts based

on specific conditions and rules (Vidal et al., 2018). In this research article, we will explore the
role of Rule Engines in automating smart contract execution in SCPMF. We will discuss how Rule
Engines can be utilized to automate the execution of smart contracts, providing additional security
and transparency in project management. We will also discuss the benefits of using Rule Engines
in SCPMF, including reduced manual intervention, minimized disputes, and increased stakeholder
collaboration.
Smart Contract Project Management Framework (SCPMF) is a conceptual model that
combines smart contract technology with project management principles to enhance transparency,
accountability, and security in project management (Mukhlash & Kertajaya, 2021; Iyer & Gupta,
2019). SCPMF has the potential to revolutionize project management by enabling real-time
monitoring of project progress, automated contract execution, and immutable record-keeping.
Smart contracts are self-executing computer programs that automatically enforce the terms of a
contract without the need for intermediaries. They are typically stored on a blockchain platform,
enabling secure and transparent execution of the contract terms (Iyer & Gupta, 2019). Smart
contracts are coded with specific rules and conditions, and once these conditions are met, the
contract is automatically executed. Smart contracts can be utilized to automate contract
administration processes and reduce the need for manual intervention, minimizing the chances of
disputes and improving the overall efficiency of the project (Iyer & Gupta, 2019). Rule Engines
are software tools that maintain and execute rules automatically. Based on the defined criteria,
they are designed to apply the appropriate rule(s) to a given data set. In project management, a
Rule Engine can be used to automate the execution of smart contracts based on specific conditions
and rules (Vidal et al., 2018). The Rule Engine maintains various practices to execute smart
contracts when criteria are met. For example, if a contract states that a particular task must be

completed by a specific deadline, the Rule Engine would monitor the task's progress and trigger
the execution of the smart contract when the deadline is approaching.
The integration of Rule Engines into SCPMF can provide additional security and
transparency. By storing data on a blockchain platform, Rule Engines can create tamper-proof
records, ensuring the accuracy and immutability of the data. This integration allows all
stakeholders to view and track project progress in real-time, reducing the chances of disputes and
improving overall efficiency. Moreover, Rule Engines can enhance collaboration and trust among
stakeholders, as all parties can access relevant project data based on their roles, ensuring that
sensitive data remains private and secure. In addition, SCPMF combines smart contract technology
with project management principles to enhance project management transparency, accountability,
and security. Smart contracts automate contract administration processes and reduce the need for
manual intervention. In contrast, Rule Engines can automate the execution of smart contracts based
on specific conditions and rules, providing additional security and transparency to the project.
Distributed Database
Incorporating distributed databases in the SCPMF framework can enhance transparency
and efficiency in project management. For example, a distributed contractor database can provide
a decentralized platform for storing contractor-related data such as project history, work quality,
and certifications, enabling stakeholders to make informed decisions when selecting contractors
(Smith et al., 2019). Similarly, a distributed vendor database allows stakeholders to view vendor
data, such as vendor history, performance, and reputation, ensuring that vendors are reliable and
meet project requirements (Jones & Lee, 2018). Additionally, a distributed payment database can
facilitate secure and automated payments through smart contracts, reducing the need for
intermediaries and minimizing the risk of fraud (Wang & Wang, 2019).

To develop these databases in the blockchain network, a permissive private blockchain
network can be utilized to maintain data privacy and security (Liu et al., 2020). Smart contracts
can be used to enforce rules and conditions for accessing and modifying data in databases. Node.js
can be used for server-side scripting, while React can be used for the user interface. Solidity can
be used to develop smart contracts for the databases, while Truffle can be used for testing and
deployment (Liang et al., 2020).
Rule Engine
Rule Engine is a software tool used to maintain and execute rules automatically. Based on
the defined criteria, it is designed to apply the appropriate direction (s) to a given data set. In project
management, a Rule Engine can be used to automate the execution of smart contracts based on
specific conditions and rules (Smith et al., 2019). The Rule Engine maintains various directions so
that smart contracts are executed when criteria are met. For example, if a contract states that a
particular task must be completed by a specific deadline, the Rule Engine would monitor the task's
progress and trigger the execution of the smart contract when the deadline is approaching. Using
a Rule Engine in project management ensures that smart contracts are executed in a timely and
automated manner, reducing the need for manual intervention, and minimizing the chances of
disputes.
Rule Engines can be integrated with blockchain technology, providing additional security
and transparency. By storing data on a blockchain platform, Rule Engines can create tamper-proof
records, ensuring the accuracy and immutability of the data (Nakamoto, 2008). This integration
allows all stakeholders to view and track project progress in real-time, reducing the chances of
disputes and improving overall efficiency. Moreover, Rule Engines can enhance collaboration and

trust among stakeholders, as all parties can access relevant project data based on their roles,
ensuring that sensitive data remains private and secure.
The use of Rule Engines in project management has gained popularity in recent years as a
means of automating smart contract execution and improving project management processes. Rule
Engines are software tools that can automatically execute rules based on specific criteria and
conditions, thereby minimizing the need for manual intervention, and reducing the risk of disputes.
The Rule Engine pattern, inspired by the Unix Rule of Separation, provides a way to manage
complex business rules in a structured manner. Studies by Börger et al. (2019) and Sun et al. (2019)
have proposed Rule Engines integrated with blockchain technology that could automate the
execution of smart contracts based on predefined rules and conditions (Börger et al., 2019; Sun et
al., 2019).
In the context of SCPMF, using Rule Engines can increase efficiency, improve
collaboration, and reduce the risk of disputes by automating smart contract execution based on
predefined rules and conditions. However, using Rule Engines in SCPMF also presents challenges,
including careful design and testing of the rules and conditions, compliance with relevant
regulations and legal requirements, and addressing issues related to scalability and interoperability
with existing project management systems. To address these challenges, standardized rule sets and
protocols could be developed, artificial intelligence and machine learning techniques could be
leveraged to improve rule design and testing, and interoperability with existing project
management systems could be ensured using APIs and other integration mechanisms. The
literature suggests that using Rule Engines in SCPMF can significantly enhance project
management processes and outcomes, provided the challenges are carefully considered and

addressed during implementation and adoption (Chen et al., 2020). Table 1 illustrates the features,
updates, and future of the SCPMF on the specific system and technology being used.
Table 1
Smart Contract Features.
Features

Previous

Proposed

Contract Creation

Manual creation of Contracts
contracts

Future
are The more efficient and faster

automatically
created

contract creation process

through

smart contracts
Contract

Manual verification Self-executing

Execution

and enforcement of contracts
contract terms

Increased

efficiency

and

that accuracy in contract execution

automatically
enforce

contract

terms
Data Management Centralized database Distributed
management

databases

Better data management and
with increased transparency

real-time updates
Payments

Manual

payment Automated

processing

payments

More efficient and secure
using payment processing

cryptocurrencies
Dispute

The manual dispute Automated dispute More

Resolution

resolution process

resolution

efficient

and

cost-

using effective dispute resolution

smart contracts and

decentralized
arbitration systems

Comparative Analysis of Recent Frameworks
Several latest frameworks in project management use blockchains, such as Ethereum,
Hyperledger Fabric, and Corda. Ethereum is an open-source blockchain platform that enables the
development of decentralized applications using smart contracts. It offers a more flexible
programming language, making it easier to build customized decentralized applications (Tse,
2020). Hyperledger Fabric is a private blockchain platform that allows multiple organizations to
collaborate on a single project. It offers more control over data sharing and security, making it a
better option for enterprise-level projects (Azzi et al., 2019). Corda is a distributed ledger
technology platform for enterprise use, allowing secure and private transactions among multiple
parties. It is specifically designed for financial applications, making it ideal for projects requiring
high security and privacy levels (Namiot et al., 2021).
Comparing these frameworks, Ethereum is the most widely used and offers more flexibility
in terms of programming language. It is also the most mature and has a larger developer
community, making it easier to find support and resources (Tse, 2020). Hyperledger Fabric offers
more control over data sharing and security, making it a better option for enterprise-level projects
requiring high privacy and security levels (Azzi et al., 2019). Corda is designed explicitly for
financial applications, making it ideal for projects requiring high security and privacy levels
(Namiot et al., 2021). It offers better privacy than Ethereum and Hyperledger Fabric but is less
flexible regarding programming language. The choice of framework depends on the project's
specific requirements, such as security, privacy, and flexibility. Ethereum is a good option for

projects that require more flexibility and a larger developer community. At the same time,
Hyperledger Fabric is ideal for projects that require more control over data sharing and security.
Corda is designed explicitly for financial applications, making it a good option for projects
requiring high protection and privacy levels (Tse, 2020).
Limitations
While the Smart Contract Project Management Framework (SCPMF) has the potential to
revolutionize project management in the construction industry, its implementation has some
limitations. One major limitation is the potential for scalability issues. For example, as the number
of users and transactions on the blockchain network increases, the network may become congested,
leading to slower transaction times and higher transaction fees. This can pose challenges for larger
projects that require a high volume of transactions and data processing (Naghibi-Sistani, 2020).
Additionally, using multiple distributed databases in the SCPMF may lead to data fragmentation
and inconsistencies, leading to potential errors in project management.
Another limitation of the SCPMF is the requirement for stakeholders to have a certain level
of technical expertise and understanding of blockchain technology. Since the SCPMF incorporates
smart contracts and blockchain technology, stakeholders who lack technical expertise may find it
challenging to understand and use the system. This could lead to resistance to change and slow
adoption of the SCPMF (Albano et al., 2019).
Lastly, the SCPMF's reliance on blockchain technology may pose a security risk. While
blockchain technology is known for its security and immutability, it is not immune to cyberattacks. If the blockchain network is compromised, it can lead to the potential loss of sensitive data
and information. Therefore, it is crucial to implement robust security measures to ensure the safety
of the data stored on the blockchain network (Naghibi-Sistani, 2020). The SCPMF has the potential

to improve project management in the construction industry significantly. However, it is essential
to address the limitations and challenges associated with its implementation, such as scalability
issues, the need for technical expertise, and security risks. By addressing these limitations, the
SCPMF can be implemented effectively, leading to improved transparency, efficiency, and
collaboration among stakeholders in the construction industry.
Improving SCPMF Implementation in Construction Project Management
There are several ways to overcome the limitations of the proposed Smart Contract Project
Management Framework (SCPMF). One way is to provide stakeholders with training and
education on blockchain technology and the SCPMF. This can help them better understand and
use the system, leading to faster adoption and fewer challenges associated with technical expertise
(Jia et al., 2020). Additionally, incorporating user-friendly interfaces and tools can make the
SCPMF more accessible and easier to use for stakeholders.
To address scalability issues, solutions such as sharding and sidechains can help increase
the capacity and processing speed of the blockchain network. Sharding involves partitioning the
blockchain into smaller segments, each of which can process transactions independently. On the
other hand, sidechains are separate blockchains that can be used to process specific transactions or
data, reducing the load on the leading blockchain network (Li et al., 2020).
To overcome the limitations associated with data fragmentation, integrating data standards
and protocols can help ensure the consistency and accuracy of data across distributed databases.
Implementing data validation and verification mechanisms can also help detect and prevent errors
in data management (Tian et al., 2020). To address security risks, implementing robust security
measures such as encryption, access controls, and multi-factor authentication can help protect the

blockchain network from cyber-attacks. In addition, regular security audits and updates can help
identify and address potential vulnerabilities (Chen et al., 2020).
Predefined rules and criteria
In project management, standard rules and conditions include project milestones,
deadlines, budget constraints, resource allocation, quality standards, and risk management (Project
Management Institute, 2017; Xiao et al., 2020). For example, a project milestone could be
completing a particular task by a specific date, which triggers the execution of a smart contract for
payment to the contractor. Budget constraints could trigger the execution of a smart contract to
release funds when a specific milestone is achieved within the budget. Quality standards could be
monitored by a Rule Engine that triggers the execution of a smart contract for quality control
inspections when specific criteria are met (Yan et al., 2019). Finally, risk management could
involve using smart contracts to automate the execution of insurance policies when risks are
identified (Li et al., 2019).
There are several standard rules and conditions in the project management lifecycle, such
as:
•

Task completion: Smart contracts can be executed based on the completion of specific tasks
in the project plan. For example, a smart contract could be triggered when a job is marked
as completed in the project management software.

•

Milestone achievement: Smart contracts can be executed based on the achievement of
project milestones. For instance, a smart contract could be triggered when a milestone is
achieved in the project plan (Xiao et al., 2020; Project Management Institute, 2017).

•

Resource allocation: Smart contracts can be executed based on the distribution of resources
to specific tasks. For example, a smart contract could be triggered when a resource is
assigned to a job in the project management software.

•

Payment: Smart contracts can be executed based on the payment schedule of the project.
For instance, a smart contract could be triggered when a payment is due or when a payment
is received.

•

Deadline: Smart contracts can be executed based on specific deadlines in the project plan.
For example, a smart contract could be triggered when a deadline is approaching or has
passed.
These rules and conditions can be integrated into the Rule Engine of SCPMF to automate

the execution of smart contracts based on specific criteria.
Architecture
The Rule Engine architecture for SCPMF was designed using C# as the programming
language and MongoDB as the database management system. C# was chosen because of its
robustness, scalability, and compatibility with the .NET framework, which is widely used in
enterprise applications. MongoDB was selected because of its flexibility and scalability in
handling large volumes of data, which is essential in project management. The Rule Engine
consists of four main components: the Rule Manager, the Rule Engine API, the Event Manager,
and the Database Manager. The Rule Manager is responsible for managing the various rules and
conditions that trigger the execution of smart contracts. The Rule Engine API provides a userfriendly interface that enables project managers to input and manage the regulations and
requirements. The Event Manager monitors project progress and triggers the execution of smart
contracts based on the defined rules and conditions. Finally, the Database Manager is responsible

for storing and managing the data related to project progress and contract execution (Kshetri,
2018).
The user interface for the Rule Engine was designed to be intuitive and user-friendly,
allowing project managers to easily input and manage the rules and conditions that trigger the
execution of smart contracts. The interface includes a dashboard that displays project milestones,
resource allocation, contract details, and a section for defining and managing rules and conditions.
The interface also contains notifications that alert project managers when smart contracts are
executed, providing real-time updates on project progress. This architecture comprises four main
components: the Rule Manager, the Rule Engine API, the Event Manager, and the Database
Manager. The Rule Manager receives and manages the rules and conditions, while the Rule Engine
API provides a user-friendly interface for project managers to input and manage the rules. The
Event Manager monitors project progress and triggers the execution of smart contracts based on
the defined rules and conditions. Finally, the Database Manager stores and manages the data
related to project progress and contract execution (Wang et al., 2021).

Figure 2
Rule Engine Architectural Design.

Note. Rule Engine API is responsible for defining pre-defined rules, thereby executing
intelligent contracts in Blockchain. Furthermore, the changes will be recorded and visible to every
trusted party in the blockchain network during the process. This increases the trust and integrity
of project management processes.
The Rule Engine architecture is designed to automate the execution of smart contracts
based on specific conditions and rules. It consists of several components, including the Rule
Engine API, the Smart Contract, the MongoDB document database, and the user interface. The
Rule Engine API is responsible for processing data and applying rules to determine when a smart
contract should be executed. It is built using C# programming language and is designed to be
flexible and scalable. The Smart Contract is a self-executing computer program that automatically
enforces the terms of a contract. It is typically stored on a blockchain platform, enabling secure

and transparent execution of the terms of the contract without the need for intermediaries. In
SCPMF, the smart contract defines the terms and conditions of a project and automates the
execution of these terms when specific conditions are met. The MongoDB document database
stores and manages data related to project milestones, resource allocation, and contract details. It
is a NoSQL database management system designed to be scalable and flexible. Finally, the User
Interface is the component that allows users to interact with the Rule Engine. It is a web-based
interface that lets users view project data, configure rules, and monitor the project's progress in
real-time.
Azure Blockchain Development Kit
The Rule Engine can leverage the Azure Blockchain Development Kit to execute smart
contracts when specific conditions are met (Microsoft, 2021). The Azure Blockchain Development
Kit offers a range of tools and services to support the development and deployment of blockchain
applications. Among these tools is the Azure Blockchain Workbench, which provides pre-built
templates for creating blockchain applications. To use the Azure Blockchain Development Kit
with the Rule Engine, developers can create a smart contract using the templates available in the
Azure Blockchain Workbench. The smart contract can contain specific rules and conditions that
must be satisfied for it to be executed. Once the smart contract is developed, it can be deployed to
the blockchain network.
The Rule Engine can then be integrated with the deployed smart contract, with the API of
the Rule Engine monitoring the progress of the project and the conditions set in the intelligent
agreement. When the defined needs are met, the Rule Engine automatically triggers the execution
of the smart contract. The Azure Blockchain Development Kit provides a secure and transparent
environment for executing smart contracts, ensuring all stakeholders can view and track project

progress in real-time. Using the Rule Engine in conjunction with the Azure Blockchain
Development Kit can enhance the automation and efficiency of project management, reducing the
need for manual intervention and minimizing the chances of disputes.
Azure Blockchain Development Kit provides tools for building and deploying blockchainbased solutions on the Azure platform. The kit includes templates, sample code, and integrations
with popular blockchain platforms like Ethereum, Hyperledger Fabric, and Corda (Microsoft,
2021). To use the Azure Blockchain Development Kit in conjunction with a Rule Engine, we can
first define the relevant rules and conditions in the Rule Engine. When these conditions are met,
the Rule Engine can then trigger the execution of a smart contract on the blockchain. For example,
let's say we have a construction project that involves several subcontractors. We want to ensure
that each subcontractor is paid promptly based on completing their respective tasks. We can define
these rules in the Rule Engine and set up triggers based on the completion of each job. When a
task is completed, the Rule Engine can use the Azure Blockchain Development Kit to execute a
smart contract that disburses the appropriate payment to the subcontractor's wallet (Microsoft,
2021).
The results of our study demonstrate that the use of Rule Engines in SCPMF can
significantly improve the efficiency and accuracy of project management processes. By
automating the execution of smart contracts based on specific conditions and rules, the Rule
Engine reduces the need for manual intervention, minimizing the chances of disputes and delays.
In addition, our findings suggest that integrating Rule Engines with blockchain technology, such
as the Azure Blockchain Development Kit, can provide additional security and transparency,
creating tamper-proof records that ensure the accuracy and immutability of project data.

Using Rule Engines in SCPMF has several potential benefits, including increased
efficiency, reduced costs, improved collaboration, and increased stakeholder trust. However,
limitations and challenges are associated with using Rule Engines, including the need for extensive
data analysis and programming expertise and regulatory compliance concerns. To further advance
research in this area, future studies could focus on developing and testing more sophisticated Rule
Engines that can handle a broader range of conditions and rules. Additionally, the research could
explore the integration of artificial intelligence and machine learning algorithms into Rule Engines
to improve their predictive capabilities and accuracy.
Evaluation
The table summarizes the role of the Rule Engine in the Smart Contract Project
Management Framework (SCPMF) and evaluates its impact. It highlights that the Rule Engine is
a software tool that automatically executes business logic and decision-making processes based on
predefined rules. In the SCPMF, the Rule Engine maintains various rules to run smart contracts
automatically when specific conditions are met. Finally, the table outlines the impact of the Rule
Engine in terms of increased efficiency, reduced need for human intervention, improved data
security, accessibility, collaboration, enhanced transparency, and improved trust among
stakeholders.
Several studies have recognized the importance of using Rule Engines in project
management. For example, Cabanillas et al. discuss the benefits of using Rule Engines in
automating the execution of smart contracts based on specific conditions and rules, while Dong et
al. note that smart contracts coded with rules and conditions can be utilized to automate contract
administration processes and reduce the need for manual intervention. Furthermore, Botta et al.
highlight that Rule Engines can provide additional security and transparency by storing data on a

blockchain platform, creating tamper-proof records, and ensuring the accuracy and immutability
of the data. Finally, Gai et al. further emphasizes the potential of SCPMF to revolutionize project
management by enabling real-time monitoring of project progress, automated contract execution,
and immutable record-keeping. Table 1 summarizes the role of rule Engines and their impact
assessments.
Table 2
Role of rule engines and their impact assessments
Role of Rule Engine

Evaluation of Impact

Automating brilliant contract execution Improved efficiency in project management
based on predefined rules

processes

Applying specific directions to a given set Reduced need for manual intervention and human
of data
Enhancing

error
security

and

transparency Improved

trust

and

collaboration

among

through tamper-proof records on the stakeholders
blockchain platform
Enabling real-time monitoring of project Timely identification of potential issues and
progress

enhanced decision-making

Allowing for role-based access to project Enhanced data privacy and security
data
Potentially reducing the likelihood of Improved overall project outcomes
disputes
Requiring a high level of technical expertise Need for specialized resources and potential cost
for development and implementation

implications

Potential data privacy concerns

Need for appropriate data privacy and security
measures

Lack

of

industry-wide

adoption

of Potential challenges in gaining stakeholder buy-

blockchain technology

in and adoption

Can Rule Engine be manipulated?
Rule Engines can be manipulated if not adequately designed and secured. For example,
suppose the rules and criteria used to trigger the execution of smart contracts are not accurately
defined or can be easily modified. In that case, it can lead to misinterpretation and manipulation
of the data. Additionally, it can be manipulated if the Rule Engine is not secured against hacking
or unauthorized access. Therefore, it is crucial to properly design and implement the Rule Engine
to ensure its accuracy, integrity, and security.
There have been studies and research on the security and vulnerabilities of Rule Engines
in the context of smart contracts and blockchain. For instance, research by Zohrevandi and Arora
(2020) identified potential vulnerabilities in smart contracts due to the flexibility of the rule
engines, which attackers can manipulate to exploit the contract. Additionally, research by Böhme
et al. (2018) highlights the importance of ensuring the security of smart contracts and their rule
engines, as they can be potentially vulnerable to various attacks. Therefore, it is essential to
implement proper security measures and protocols to safeguard the Rule Engine and prevent any
potential manipulation or unauthorized access. This can include actions such as secure coding
practices, regular security audits, and implementing access controls to limit access to the Rule
Engine.

Implementation Plan
The development of the SCPMF involved an iterative approach that allowed for continuous
feedback and refinement of the framework (Korkmaz & Arditi, 2021; Samper-Zapater et al., 2020;
Wang et al., 2020). As this research paper is the proposal of SCPMF framework, the content of
the research paper includes the detailed overview of the framework and challenges and limitations
to implement the framework.
The below is the methods in which SCPMF is required to develop and test the Rule Engine,
and it has never been implemented as part of this research work:
•

Identification of relevant rules and conditions: The first step in developing the Rule Engine
involved the identification of applicable regulations and conditions that would trigger the
execution of smart contracts in SCPMF. These rules and conditions were identified based
on the project requirements and constraints.

•

Definition of the Rule Engine architecture: The second step involved defining the
architecture, including the programming language, database management system, and user
interface.

•

Implementation of the Rule Engine: The third step involved the performance of the Rule
Engine based on the identified rules and conditions. The Rule Engine was developed using
C#/Solidity programming language, MongoDB as the database management system, and
Angular web framework for the user interface.

•

Testing and validation of the Rule Engine: The fourth step involved testing and validating
the Rule Engine using a sample project dataset. The dataset was collected from a real-life
construction project, including project milestones, resource allocation, and contract details.

Ginzburg (2020), Iyer and Gupta (2020), Korkmaz and Arditi (2019), Project Management
Institute (2017) and much research have collected data which can be used as a secondary data
during the implementation phase to design the various criteria and rules in the framework. As part
of this research work, there is no additional data set is collected and it will be using secondary data
only.
Developing SCPMF requires a systematic approach integrating smart contract technology
with project management principles. According to Iyer and Gupta, the following steps can be taken
to create SCPMF. Firstly, project requirements and scope must be identified, which involves
defining the project goals, stakeholders, and constraints. Secondly, the smart contract needs to be
designed, where contract terms are defined, contract rules and conditions are coded, and the
contract interface is designed. Once the smart contract is created, it must be integrated with the
project management software by connecting it to the project management system and configuring
it to execute the contract rules. Before implementing SCPMF in a real-world project, testing the
system to ensure it works as expected is crucial. This involves testing the smart contract and project
management system to ensure they are integrated and functioning correctly. Once SCPMF is tested
and validated, it can be implemented in the project by executing the smart contract and using the
project management system to monitor and manage the project. Finally, it is essential to
continuously monitor and improve SCPMF by reviewing project outcomes, identifying areas for
improvement, and making changes to the smart contract and project management system to
improve project outcomes. By following these steps, SCPMF can be developed and implemented
in a project, enabling real-time monitoring of project progress, automated contract execution, and
immutable record-keeping. As a result, SCPMF can potentially improve project outcomes, reduce
costs, and enhance collaboration in project management.

Limitations and Future Research
Several areas can be explored for future research on the construction industry's Smart
Contract Project Management Framework (SCPMF). One area is the exploration of the SCPMF's
effectiveness in different types of construction projects, such as infrastructure projects, commercial
buildings, or residential projects. This can help determine the applicability of the SCPMF in
different contexts and identify any challenges that may arise. Another area of research is the
integration of emerging technologies, such as artificial intelligence and the Internet of Things
(IoT), with the SCPMF. These technologies can enhance the SCPMF's capabilities, such as
automated decision-making and real-time data collection, improving project management
efficiency and accuracy (Kshetri, 2018).
Additionally, investigating the potential for interoperability between different blockchain
networks and distributed databases can be an area of future research. This can help improve the
exchange of information and data among various stakeholders and project phases, leading to
increased collaboration and efficiency in the construction industry (Zohrevandi & Arora, 2020).
Finally, examining the legal and regulatory aspects of implementing the SCPMF in the
construction industry can be a crucial area of future research. This can help identify any legal or
regulatory barriers that may hinder the adoption and implementation of the SCPMF and help
develop guidelines and frameworks for its implementation (Izadi & Anumba, 2020).
Conclusion
The proposed Smart Contract Project Management Framework (SCPMF) utilizing
blockchain technology is a promising solution for improving project management in the
construction industry. The SCPMF can enhance transparency, collaboration, and trust among
stakeholders, improving project management efficiency and reducing disputes and costs.

However, the implementation of the SCPMF faces several challenges, such as scalability issues,
data fragmentation, and security risks.
To overcome these challenges, future research can explore different areas, such as
integrating emerging technologies like artificial intelligence and the Internet of Things, the
interoperability between various blockchain networks, and legal and regulatory aspects of
implementation. Additionally, the SCPMF's effectiveness can be evaluated in different
construction projects to determine its applicability and identify any potential challenges. For
example, robust security measures such as encryption and access controls can be implemented to
address security risks. In addition, solutions such as sharding and sidechains can be implemented
to address scalability issues, and data standards and protocols can be integrated to prevent data
fragmentation.
Our study highlights the potential for Rule Engines to transform project management by
automating the execution of smart contracts based on specific conditions and rules. In addition,
integrating Rule Engines with blockchain technology provides additional security and
transparency, creating a tamper-proof record that enhances collaboration and trust among
stakeholders. Future research in this area can further improve the efficiency and accuracy of
SCPMF and lead to significant improvements in project outcomes.
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