Transformational approach to subcontractor selection using blockchain-enabled smart contract as trust-enhancing technology

The unethical practices of bid shopping and peddling during the subcontractor procurement process can reduce trust between the general contractor (GC) and subcontractors (Subs) and lead to low-quality work, claims and disputes, schedule delays, and cost overruns. This paper contributes to the body of knowledge by developing a framework based on a blockchain-enabled smart contract system to address these unethical practices, thus establishing the subcontracting process grounded on system-based trust. The proposed framework is demonstrated through a pilot test, and a survey with construction professionals is conducted to validate its feasibility and effectiveness. The validation results show that the framework can prevent the aforementioned unethical practices and enable Subs to fairly compete for bid awards with proper budgets. Moreover, the validation demonstrates that the framework can enhance trust between the GC and Subs. Future studies should explore the implementation of this framework in the procurement process of real-world construction projects. •This study identified the negative impact of bid shopping and peddling during the subcontractor procurement process.•This study proposed a blockchain-enabled smart contract system to address bid shopping and peddling by enhancing system-based trust.•This study conducted a professional survey with a pilot test of the proposed system and thus validated the effectiveness.•This study provided the limitation of the proposed system through the professional survey and proposed future studies.