Collaborative Techniques & Smart Contracts
Collaborative Techniques & Smart Contracts

Summary/Abstract: Conventional construction contracts are inherently adversarial. Key-trends in the construction industry have the potential of changing that, alongside shaping a new dispute resolution mechanism.On one hand, collaborative principles aim to resolve the industry’s productivity problems. Increasing productivity means a successful outcome of the entire project should be the primary goal of every participant.Firstly, it is achievable by engaging project participants that believe in this work ethic and that are willing to consider focusing on performing their own responsibilities.Secondly, it is achievable by regulating a contractual frame that allows a customized dispute resolution mechanism.Early involvement of professionals acquainted with collaborative techniques means that any event that has the potential to become a disruption can be handled and its potential effects can be minimized.Harmonizing and introducing collaboration principles as well as a permissive dispute resolution mechanism can be difficult in public procurement contracts, where Romanian legislation prohibits the modification of contracts and standard forms of contracts are used.On the other hand, the immutable nature of a smart contract creates an environment where facts are harder to dispute due to the optimized and efficient data management.In addition, smart contracts have the potential to force the construction industry to focus on recurring, industry-wide problems such as late payment. On an opposite note, smart contracts raise major concerns regarding security, job loss due to eliminating intermediaries, lack of investors control and privacy matters.

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