Utilizing Large Language Models for Data Extraction from Construction Contracts: A Pathway to Generating Blockchain-Based Smart Contracts

Abstract

This study explores the automation of smart contract generation in construction, leveraging Large Language Models (LLMs) like OpenAI’s ChatGPT. Traditional construction contracts often suffer from delays and disputes, particularly in payment processes. The paper investigates automating the transformation of these traditional contracts into smart contracts, which promise enhanced efficiency and transparency. By conducting an extensive literature review and analyzing various contract types, the study identifies critical elements that are translatable into smart contracts. The experimental phase demonstrates the effective use of the ChatGPT API in extracting necessary contract information for conversion. This approach aims to streamline contract management, reduce disputes, and improve overall project execution. The potential of LLMs in this context is significant, indicating a shift towards more automated, reliable, and transparent contract management in the construction industry.