An implementation framework for blockchain and smart contracts adoption in the egyptian construction sector

Abstract

The Egyptian construction sector faces persistent challenges, including inefficiencies, delays, cost overruns, and contractual disputes, often due to fragmented workflows, manual documentation, and limited technological integration. This study investigates the potential of blockchain technology and smart contracts to improve transparency, automate contract enforcement, and enhance risk management within the sector. A conceptual framework was developed and tested using Partial Least Squares Structural Equation Modeling (PLS-SEM) based on data from 92 professionals across the construction industry. The findings reveal that key motivators for adoption include the willingness of clients and contractors (β = 0.809), clarity in responsibility and risk allocation (β = 0.772), and user-friendly contract interfaces (β = 0.747). Conversely, significant challenges include legal enforceability concerns (β = 0.855), broader legal ambiguities (β = 0.805), and market hesitation (β = 0.672). The study highlights the mediating role of these challenges and emphasizes the need for regulatory reform, stakeholder engagement, and capacity building. The proposed framework offers practical guidance for policymakers, industry leaders, and technology providers aiming to drive blockchain adoption in Egypt’s construction sector and similar emerging markets.