NICMAR

BIM AND SMART CONTRACTS FOR SMART CITIES

Submitted By

Vibhash Kumar (AP19573)

Ayush Jain (AP19576)
Priyank K Khagwal (AP19580)
Lohar Kailash Vastimal (AP19582)

POST GRADUATE PROGRAMME IN ADVANCED CONSTRUCTION

MANAGEMENT

(PGP ACM)

Under the Guidance of

Dr. Malsane Sagar

NATIONAL INSTITUTE OF CONSTRUCTION

MANAGEMENT AND RESEARCH PUNE
 Acknowledgment

This Project is the result of an instinct, deep rooted in us to study the BIM And Smart
Contracts for Smart Cities. This Project provided us that exact opportunity we needed.

We would like to add a few words of appreciation for the people who have been a part of
this dissertation right from its inception without whose support, patience and guidance this
Mini Project would have not been completed.

We are highly indebted to Dr. Sagar Malsane for her guidance and constant supervision as
well as for providing necessary information and support regarding the report and also for
her support in completing this report.

Our thanks and appreciation also go to my colleagues for their constant support in
developing the project and people who have willingly helped me out with their abilities. We
would like to extend my sincere and deepest gratitude to all of them.
 Table of Contents

Sr. No. Description Page no.

1 Introduction 1

2 Objectives 4

3 Literature Review 5

4 Conclusion & Limitations 32

5 References and Bibliography 33

Introduction:

During the last years, both academicians and professional researchers attribute an interest to
the future of cities. They conclude that the technological leap will influence the both
architecture and infrastructure, which will give birth to the smart cities vision. This report aims
to provide a comprehensive understanding of the development of smart cities using smart
technologies, such as Building Information Modelling (BIM), smart contracts, block chain.
However, the current application of BIM and block chain in the sustainable design and
construction process focuses on smart energy and construction management, with little
attention to addressing challenges for applying BIM to sustainable design and proposing
strategies in terms of the usability of these technologies in the management of building
construction projects.

The past few decades have witnessed a meteoric rise in the world’s population that lived in
urban area. Nowadays, more than 55 % of the world population are living in urban areas and
over the next 30 years, this rate is predicted to reach 70 %, as by 2050, an additional 25 billion
people are predicted to move to urban areas. The explosive growth in the world’s population
coupled with the rapid urbanisation process brings forth numerous social, technical,
organizational and economic problems, which tend to endanger the environmental and
economical sustainability of cities. Hence, majority of governments are actively interested in
adopting “smart” concepts to optimize the use of both tangible (e.g., natural resources, energy
distribution networks, and transport infrastructures) and intangible assets (e.g., organizational
capital in public administration systems, intellectual capital of companies and human capital)

Nowadays, cities face complex challenges to improve their citizens’ quality of life. According
to the 2014 United Nations (UN) World Urbanization Prospects report (United Nations 2014),
more than half of the global population now lives in urban areas, and an additional 25 billion
people are predicted to move to cities by 2050. Due to urban concentration, people’s living
conditions have been impacted by increased traffic jams, carbon dioxide, greenhouse gas
emissions, and waste disposal. The notion of “smart city” is a response to these problems; it
has gained popularity over the past few years. Many cities define themselves as “smart” when
they identify some of their own characteristics as being so (such as broadband connectivity,
digital inclusion, and knowledge workforce). A common underlying fact is that these smart
cities benefit from innovative applications of new kinds of information and communications
technology (ICT) to support communal sharing. Urbanization process is related to economic

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development, social development and environmental protection. Consequently, the urban
population percentage is increasingly important. This last took the speed character to overcome
the rural one since 2007. Consequently, cities all over the world are at height for seeking
optimal solution to face new challenges that grow variably over space and time. The quick
transition to highly urbanized population has made from societies a process of presenting
solutions regarding many key themes such as: Sustainable development, Environment, Energy,
Education, Safety and public services. These challenges have led urban areas to be compound
social ecosystem in which sustainability and good quality of life are important to be ensured.
In order to improve the management of urban processes and inhabitant’s requirements, divers
administrations all over the world have presented significant number of future cities model in
which technology, connectivity, sustainability, comfort, safety and attractiveness shape the
crucial objectives to achieve on the one hand and let cities aware of the concept of “Smart city”
on the other hand. In this regard, and for the large part of 20th century, the cities smartness was
just media’s science fiction, but thanks to telematics development and the devices intelligence,
the smart city “is fast becoming a reality”. Furthermore, the use of information and
communication technologies (ICTs) is important to cause as higher systems’ automation with
enabling individuals to monitor, understand, analyse and plan the city. Thus smart city is rooted
with intelligent infrastructure’s creation and ICTs-Human connection where the city growth
must respect with these three axes: Sustainability; by improving the city/environment
relationship and using green economy. Smartness; context aware economy and governance.
Inclusiveness; by fostering a high-employment economy delivering social and territorial
cohesion.

In contrast to the traditional methods, block chain technology (that was originally designed for
Bitcoin cryptocurrency) facilitate transfer of digital assets among peers without any
intermediaries. Since, its inception by Santoshi Nakamoto in 2009, Bitcoin witnessed
tremendous growth with the capital market. Block chain is a decentralized, publicly available
and immutable shared database that revolutionized the way peers automate payments, interact,
trace and track transactions by completely eliminating the need of a central authority for
governing the transactions. In traditional systems, the collected data by smart city devices are
stored on a central server for future use. These central servers are susceptible to several
challenges such as revealing of sensitive information due to hacking of unencrypted server data
and the need for more than one management authority at a time. This brings forth the need for
a paradigm shift towards a decentralized architecture for storage and management of data. In

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this context, block chain enables two devices to communicate and exchange data, information
and resources in a decentralized Peer-to-Peer (P2P) network.
Further, the block-chain based systems incur minimized overall security monitoring cost and
provides security against adversaries trying to gain access to personal information or control
over the entire system. And hence, Block-chain integration with BIM and other rapidly
advancing technologies will push the industry towards leaner procurement systems with
improved collaboration. As a result, there will be more control and transparency regarding the
cost and duration of the projects by eliminating intermediate parties, which also reduces the
overall cost of projects.

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Objectives:
The issues of introduction of building information modelling (BIM) along with the
integration of smart contracts for smart cities in construction industry will be considered in
this work. The advantages of this approach and perspectives of the transition to new design
technologies, construction process management, use of block-chain technology for
integrating smart contracts and operation in the near future.

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Literature
In the literature, smart city is a broad idea that includes many aspects of urban life (Chourabi
et al. 2012) and is also a fuzzy concept that has been used in ways that are not always in
accordance with each other (Cocchia 2014). The notion embraces several different dimensions
depending on the meaning attributed to the word “smart” and the label “smart city.” Some
examples include digital city (Couclelis 2004), intelligent city (Komninos 2006), knowledge
city (Ergazakis et al. 2004), and ubiquitous city (Anthopoulos and Fitsilis 2010). The ambiguity
of the concept causes difficulty in understanding how information technology (IT) adoption
impacts smart cities’ development (Komninos et al. 2013). A city cannot adequately be called
“smart” using specific or limited sectoral improvements. A “smart” city involves horizontally
cumulative elements such as smart governance, smart mobility, smart living, the smart use of
natural resources, smart citizens, and smart economy, all taken together (Gori et al. 2015)
Nevertheless, because of space constraints and the population density of urban living, cities are
naturally designed to be sharing economies with consumption involving access to shared
resources over asset ownership (Sundararajan 2014). There are various ways of using modern
technologies to create efficient economies and societies, yet sharing is one of the most
important characteristics of smart cities (Agyeman and McLaren 2014).
Figure 1 shows an illustration of the link between the sharing economy and smart cities. In the
core, smart city is propelled by societal drivers, economic drivers, and technology enablers. In
the figure’s outer ring, the ultimate goal of smart city is to achieve smart governance, living,
people, mobility, environment, and economy (Caragliu et al. 2011). In the middle ring, smart
city’s growth benefits from improving the use of urban resources such as space, transportation,
services, food, goods, and money. Since the sharing economy concerns how to share urban
resources, studying smart city through the lens of the sharing economy can help us better
understand how it expands from the angle of resource allocation.

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 FIG 1
To understand the development of smart cities from the angle of a sharing service, we propose
a conceptual framework of smart cities based on the literature. According to the conceptual
classification of smart cities in previous studies (Cocchia 2014; Nam and Pardo 2011),
technology, human, and organization represent the terms most frequently used to describe
smart cities.

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As shown in Fig. 2, smart city is based on human, technology, and organization, and there can
be service relationships among them. Technology is based on using ICT to transform life and
work within a city in relevant ways. Notions related to this aspect include digital city (Aurigi
2005; Ishida and Isbister 2000), virtual city (Schuler 2001), information city (Anthopoulos and
Fitsilis 2010), wired city (Hollands 2008), ubiquitous city (Anthopoulos and Fitsilis 2010), and
intelligent city (Komninos 2006). The human dimension is based on people, education,
learning, and knowledge; concepts related to it include learning city (Larsen 1999; McFarlane
2011) and knowledge city (Ergazakis et al. 2004). The element of organization is based on
governance and policy because cooperation between stakeholders and institutional
governments is very important to design and implement smart city initiatives; this component
includes ideas such as smart community, sustainable city (Bătăgan 2011), and green city (Kahn
and Mills 2006).
The word smart city became a wide spread soon after the announcement made by the Prime
Minister of India to initiate and development 100 smart cities across India. Smart city mission
is framed along with defined features, selection, and evaluation criteria.
• Features of smart city:
These features include the sustainable practices in terms of technology usage, governing policy,
economic viabilities etc. Efficient use of land area in both the planned and unplanned areas
should be done. Allowing the intelligence transportation systems especially quality and
affordable public transportation.
• Eligibility and selection criteria for smart city:
A three-step selection process is followed as per the smart city mission in India to select and
allocate funds for the development
➢ Step-1: As an initial step, scanning of smart city proposals is done by substantiating the
extensiveness, clarity etc. After the wetting process, a unique identification number is
assignment for the respective proposal. The initial step is completely processed by Ministry
of Urban Development, Govt. of India (MoUD-GoI).
➢ Step-2: The second step is the evaluation of smart city proposals by the expert committee
members from Indian as well as the Foreign.
➢ Step-3: Final step is the review of the expert committee comments and selection by the
Apex Committee, with in the Ministry of Urban Development, Govt. of India (MoUD-
GoI).

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• Smart City Mission, Policies and Scheme in India:
Few policies or the schemes that were seen to be helpful in the Smart City Mission Program
are as follows
➢ Atal Mission for Rejuvenation and Urban Transformation (AMRUT).
➢ National Transit Oriented Development (TOD) Policy
➢ PPP Models for Affordable Housing
➢ National Urban Sanitation Policy
➢ National Urban Transport Policy
➢ National Mission on Sustainable Habitat
➢ Public-Private Partnership (PPP).
➢ Pan City Initiatives.
➢ Schemes for developing Special Purpose Vehicle (SPV) and Urban Local Bodies (ULBs).

• Challenges:
There are few challenges which needs to be addressed, up on which the progress of smart cities
would be much better.
These challenges were listed below:
➢ Lack of strong interlinked and interdepended work culture between the states and central.
➢ Lack of smart leadership and vision.
➢ Lack of ability to plan and frame the smart city success defining factors.
➢ Less understanding over the technological aspects of smart city elements.
➢ Less awareness over “retrofitting, redevelopment and greenfield development concepts.
➢ Lack of smart city vision-oriented policy makers, implementers, evaluators, and
stakeholders.
➢ Lack of investments
➢ Lack of good partnership with private or other interlinked regulatory bodies.
➢ Less awareness over the resource management.
➢ Lack of smart people who actively participate in governance and reforms.
➢ Less support from the citizen or the people.
➢ Less improvements in the strategic development activities.

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Pillars of Smart City
Smart city is believed to be based upon four themes/pillars namely physical infrastructure,
institutional infrastructure, social infrastructure and economic infrastructure. The main
responsibility of these aforementioned pillars are as follows.
The physical infrastructure aims to ensure resource sustainability and smooth city operations.
It comprises of manufactured infrastructure and natural resources. Smart city is realized with
the help of quality smart object network and ICT infrastructure. The physical infrastructure is
also extended to smart energy, renovation of buildings, green urban planning and green
buildings.

The institutional infrastructure serves to enhance the smart city governance by participating in
decision making, political strategies, transparent governance and social services. It is essential
to gain maximum benefit of the human capital and work with the citizens for easy governance
as well as betterment of the city. The institutional infrastructure collaborates with the central
as well as regional government for exploiting maximum benefit from the smart city. It
integrates national, civil, public and private organisations in order to provide necessary
interoperation between services. Kitchin et al. proposed technocratic governance to be a driving
force for institutional infrastructure as it presumes that all the features and services of the city
can be addressed using technical solutions.

The social infrastructure is comprised of human capital, QoL and intellectual capitals. Social
infrastructure helps to maintain sustainability in a smart city as citizen awareness, popularity
and commitment contribute towards making the concept of smart city popular.

The economic infrastructure refers to the steady growth of the economy and jobs so as to
escalate the city productivity by utilizing best practices of e-business and e-commerce.
investigated this aspect using a modified triple helix model and several performance indicators
such as gross inland energy consumption indicator, employment rate in various industries, GDP
per head and projects funded by civil societies.

Security requirements of smart cities

ICT have played an important role in almost every aspect of our daily life ranging from
education, health and personal lives to national security. Majority of government projects
adopted smart city programs in order to manage issues related to health, water, energy,

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transportation, surveillance and security. In addition to making our life easier, the smart cities
also bring forth several security challenges because of increasing interdependency,
connectivity and complexity among them. In order to securely implement the smart city, a clear
understanding of these challenges is of utmost importance. In this section, we explore the most
prominent requirements that needs to be taken care of in order to build a secure smart city.
BIM FOR SMART CITIES:
Smart city is a concept of urban development that allows you to safely integrate information
and communication technologies and the Internet to manage the city's assets. To achieve the
concept of a smart city, innovative technologies should be used at the planning and design stage
of a building and construction, also including during the implementation of change in the
existing infrastructure of the city. The implementation of the smart city concept includes the
development of such sectors as: energy management, water management, waste management,
smart infrastructure, transport and logistics management, security management, etc. The task
of Smart city is collection of data (information) about buildings and structures that can be
analysed, adjusted, stored and converted. The tool and platform for this task is BIM (building
information modelling).

BIM (Building Information Modelling) — information modelling of buildings, which allows

one to model not only the construction objects themselves, but also their characteristics, as well
as all possible changes in time. The use of BIM technology is integrated into all stages of
production and life support of buildings: data collection, design work, construction, equipment,
operation, repair work and demolition. That is, all the necessary information is located in the
computer models: architectural, construction, technological, economic, etc. [1].

Figure.1

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Role of BIM in Smart City
Today, every major country is integrating the Building Information Modelling in their
development of infrastructure, giving rise to what we call “Smart Cities”.

A smart city may be defined as an urban area that uses various technologies and electronic
data-driven devices to manage, analyze, and use resources more effectively and efficiently.

BIM, like advanced technology, helps in reducing wastage and prevents unnecessary costs by
providing smarter options and alternatives that are cost-effective and sometimes even improved
over the man-made plans. It helps in ecological and sustainable development by building
structures and buildings that make use of the most intelligent resources available. The main
aim of BIM is to build Smart Cities that are well integrated in terms of transportation,
communication, development, infrastructure, technology, and services at every level- be it
household or at a macro City level. The USP that BIM has is that there is a standardized flow
of information between parties involved throughout at each level of this development- enabling
a much more precise and detailed project.

Multiple issues such as decrease in labour productivity, poor identification of design

requirements, and lack of steady and professional construction management hinder the
construction industry. This situation made the industry revaluate its performance and look into
ways for improvement. Project integration is essential for success; designers and constructors
must collaborate and communicate effectively to keep budgets and schedules on the right track.
Technology is slowly breaking through construction management practices and new
contractual methods are emerging. There are already some conventional categories called
“Levels” and movement from one level of BIM usage to another is referred to as BIM maturity.

These levels are as follows:

• Level 0 – It is not really BIM at all. It uses only 2D CAD files for design and production
information.
• Level 1 – It uses 3D data to represent design. This level is also known as lonely BIM. There
may be a number of designers, but they do not cooperate. Each of them is working in
isolation and deals only with his own model. Some standard data structure and formats are
used. Also some separate stand-alone finance and cost management packages can be used.
But they are never integrated in the general BIM model.

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• Level 2 – BIM advantages are utilized at this level. Managed 3D format is held in separate
BIM discipline software tools with data attached. Another significant characteristic is
utilization of COBIE (Construction Operations Building Information Exchange). This
information exchange necessitates the creation of principles by which data will be shared
and parties will cooperate. It may also introduce first steps towards construction sequencing
data or cost information.
• Level 3 – is described as fully integrated and collaborative real-time project model. This
model is likely to be facilitated by web services. It will comply with emerging Industry
Foundation Classes (IFC)/building Smart Data Dictionary standards. Software
interoperability will be necessary at this level. BIM will also face infrastructure and legal
obstacles. At this level BIM models will utilize construction sequencing, cost information,
project life-cycle and other management information, and will be driven by the
development of standard libraries of object data, which will include manufacturers'
information.
There is also another way to classify BIM maturity. This approach relates to model itself and
is described simply by dimensions of model. In this case we can think of 3D model as a
platform. This platform expands with other applications that may be used through the planning,
design, construction and facility operation processes. In this classification system, everything
that operates with visual model itself can be categorized as part of 3D model. That includes
model walkthroughs, project visualization, clash detection, virtual mock-up models,
prefabrication and other information that has to do with dimensions and space.
The 4th dimension (time) provides schedule visualization and management for contract
planning. The element of time helps to establish critical paths and visually show the
dependency of some sequences on others. Models can also include some temporary
components such as cranes, Lorries and other.
The 5th dimension adds money (cost) to the picture. This also fully utilizes quantity take-offs.
With such an information BIM can provide not just real time cost estimating, but whole life-
cycle cost. EVM is widely used for monitoring and controlling time and cost parameters
according to a baseline and rendering forecasts [2].
BIM platform should provide:
• Openness, interoperability and compatibility – Software should allow wide range of data
exchange. Must support import and export of IFC files and be able to support COBIE. It
needs to operate cloud storage and offer advanced model sharing.

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• Simplicity and functionality- Software should be easy to learn and understand.
• Accuracy of data – Tools should be able to give accurate information about the model.
Correct calculations of quantities from model are very important.
• Expandability – Software should offer the option to work with 3rd party software plugins.
• Capable of advanced life-cycle and energy modelling – One of the very important
requirements, since governments all over the world have established high goals on reducing
carbon footprint. BIM tools will play crucial role in achieving energy saving.
• Time management and clash detection – Tools should be able to visualize construction
planning and dependencies. They should be able to find and solve collisions before the
construction starts.
• Cost estimation – Software should work with the model and store data directly inside the
model. It should be able to work on the fly and with respective accuracy give an overview
of the expected project costs.
• Facility management – These FM systems should be able to fully utilize all the BIM data.
It should help with managing day to day tasks of building maintenance as well as
unexpected events.
These are current criteria for best use of building information models of today. However, they
reflect an ideal state, rather than reality. Most projects of today are realized at BIM Level 0, 1
or 2.

BENEFITS OF USING BIM:

Many of the BIM advantages are observed as direct advantages; however, the largest
advantages really are the indirect advantages. The direct advantages include qualities, for
instance the enriched imagination, conception and the concentration of building information in
the project. In contrast, the indirect advantages are the essential for cooperation and giving the
best result for project understanding, and reducing the project risk. Simulations authorize us
that a design be planned checked virtually before the real project is constructed. A model can
help us to have a visualization of the project. This visualization provides stimulation view in
concerning the project needs that help to describe the project in an effective manner.
The three main BIM benefits, which have been organized, are the elimination, visualization,
and collaboration. There is actually much overlap amongst these classifications, but they have
been selected as the principal thought around which all the advantages can be better realized.

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First of all, visualization mainly indicates the advantages for the improvement and an
individual in her/his personal realization as a consequence of utilizing the BIM. Second of all,
collaboration can be the cooperative behaviour of some members in the team as the BIM is
encouraging and facilitating it.
Finally, elimination refers generally project-related advantages, for example decreasing the
waste, risk, and conflicts.
Richard et al. stated in brief BIM advantages, which can be indexed as follows:
1. Materials take off should be simplified.
2. Complex details can be surveyed and analysed.
3. The different trade components coordination can be reviewed for potential “hits.”
4. Sequence of placing a project with each other is expanded.
5. The 4D, which added time, can be merged to demonstrate how quickly a project can be put
together.
6. Site work eminences among the ultimate eminence and existing conditions could be
determined.
7. The best routing could be reviewed for pipes, lights, ductwork wires, cables, and
sprinklers.
8. The site preparations with the hoists and cranes location can be analysed.
9. Lift schedules would be determined for the steel, concrete, and huge mechanical and
electrical equipment placement.
10. Developing the schedules and the associated argument will be expanded.
11. Problems of potential safety would be evaluated.
12. Alternatives can be assessed in more realistic terms.
13. Coordinating the trade’s former to perform the real work.
COLLABORATION OF BIM IN SMART CITIES:
BIM comes into picture when the development of a city requires integration and corroboration
of resources so that there is uniformity in terms of information and knowledge amongst all
stakeholders. It enables collaboration of various fields smoothly and helps in transitions
between various teams without any knowledge leaks.
Building Information Modelling is an advanced asset allocation system that ensures high-
quality output, minimizes resource consumption, reduces the impact of development on the
environment, and even helps in securing the future generations in terms of resources and their
availability.

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This technology is essential to modern development as it allows building virtually before
anything is set in stone physically, this allows room for study, research, and improvement
before the project has even begun on the ground. The development of smart cities is complex;
there are systems and systems of interconnected data and information flowing every
millisecond all day every day. There are multiple teams involved, such as construction,
supervision, architectural, plumbing, and operations.

BIM cannot be enough to be used as an urban model in Smart city (SC) projects due to the
need for large scale urban information, as BIM can only store information on the characteristics
of buildings, urban entities and data at the urban level. Internet of Things (IOT), GIS and BIM
integrated SC project model covering the entire lifecycle of SC has potential to be more
effective than usage of BIM alone or usage of BIM together either with IOT or GIS. Figure 1
summarizes the potential usage of the IOT, GIS and BIM in an integrated way to support whole
life cycle of SC and SC projects. Within the scope of this research, SC project concept covers
all phases (e.g. construction, pre- and post-construction) of SCs. Figure 1 reveals that IOT, GIS
and BIM integrated SC project model can provide real time model of the SC and it can
contribute to the pre-construction, construction and post-construction (e.g. operation) of SC
supporting the whole lifecycle of SC projects.

Figure 2. IOT, GIS and BIM integrated SC project model covering the entire lifecycle of
SMART CITY

A geographic information system (GIS) has been used in the construction of a large-scale
model of a smart city project. This concept is based on the use of geospatial data concerning
the urban built environment, the natural environment and urban services. The successful
implementation of a smart city project requires the development of a digital system that can
manage and visualize the geospatial data in a user-friendly environment. The geographic
information system (GIS) offers advanced and user-friendly capabilities for smart city projects.

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This article shows how a GIS could help in the implementation of smart city projects and
describes its use in the construction of a large-scale model of the smart city [3].

The ‘smart city’ concept aims at developing a comprehensive system that uses geospatial data
to enhance the understanding of complex urban systems and to improve the efficiency and
security of these systems. This geospatial data concerns:

(i) The urban built environment such as infrastructure, buildings and public spaces,

(ii) The natural environment such as biodiversity, green spaces, air quality, soil and water,
and

(iii) Urban services such as transport, municipal waste, water, energy, health and education.
The smart city concept also aims at transforming the ‘silo-based’ management of cities
into a ‘shared’ system that involves urban stakeholders in the design, realization and
evaluation of urban projects.

Figure 2

In the words of Lean Doody, “BIM is transforming, not only the way buildings are designed
and constructed, but also how they are managed and developed in the light of changing
customer needs. In so doing, BIM is changing relationships and business models across the
whole value chain. Meanwhile, at the city level, the technology-enabled city is an untapped
source of sustainable growth and represents a powerful approach for tackling unprecedented

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environmental and economic challenges. By unlocking technology, infrastructure, and public
data, cities can open up new value chains, spawning innovative applications and information
products that make sustainable modes of city living and working possible. The data delivered
through BIM at a building level will be an important enabler of these new value chains.” [4].

How does BIM Help in smart city development?

We can understand this by analysing the role of BIM in a construction project and therefore we
can implement this in smart city development.

The following steps should be considered:

1. Phase of planning and pre-construction:

It is presently not unusual to identify the applications of BIM in the pre-construction a
project phase. This is huge part due to the reality which easier models, and narrow
information that is associated with the planning stage, will be able to provide huge
advantages for the project. The argument of this stage has been divided into two segments.
First of all, it is to address the design and marketing of conceptual features of the project.
Second of all, it can be to plan and design during developing the finalized set of address
instructions for the project construction [5].
1.1. Model Development

It is defined as a planning nature and design phase for a project. The advanced three
dimensional (3D) provided visualization is furthermore very useful for the designers with
relation to grow in their own work. All opinions approximately about the project will be
mirrored in the model in a manner or another. In this phase, the project can be still justly
schematic, as well as it is usually not problematic to indicate the opinions of the project
group employees in the model [5].

1.2. Analysing the Constructability

Another valued part of the pre-construction segment is the constructability which consider
on the evaluation of the needs and conditions of the construction procedure itself to attain
the desired consequences. This will contain an assessment of the application of materials
and systems furthermore analysing the installation, construction, manufacture, and
assembly details of all the project segments. Value engineering is able to be efficiently
displayed at this early project phase. Value engineering in this meaning considers the account
to maximize the project design and components value. Optimization of the project value is able
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to be attained through brainstorming sessions where the entire project group cooperates, thru
the three dimensional (3D) model where facilitates visualization and connection amongst group
members [5].

1.3. The Construction Schedule

With assistance from the 4D model, the schedule of construction can furthermore be
expanded. A schematic construction sequel is simulated when a primary schedule is
accessible. This will be facilitating the construction process visualization and allow the
attention of other approaches to sequencing, layout of the site, and location of the crane,
and etc. during the construction procedure. Furthermore, the components of the model can
include information of production rates (“for all the associated work tasks”) where will
allow analysing the balance schedule lines; this approach permits the fine-tuning of tasks
based on their placement in the project and production rates and assists to remove starting
and stopping the cycles in the tasks. Improving the reiterative activities and production rates
can build an important discrepancy in the large project effectiveness and efficiency [5].

1.4. Cost of Projects

The Cost of the project can be predicted and tracked by using BIM throughout all stages of
project planning. In the early project phases, it can be useful to establish the budget areas;
these are represented as square footage expenses in a very easy model. A model of
schematic 5D is going to prepare the schematic quantities, as well as outline expenses
estimation can be produced. While the expenses of project estimation and budget are
followed thru usage of the model throughout the design stage, it will be referred to as a
goal of value design. As the models develop, cost tracking is able to be refined with the
enlarged the model detail levels; moreover, the expense implications for design alternatives
can be able to be estimated at any design development phase. Many of analysing the cost
will be based on the connection between the components of the model and an exterior
database which includes the real cost information.

2. CONSTRUCTION PHASE:

In the construction phase, both the management of project team (“people-related”) and
management of process can be applied by the BIM process. The BIM usage in the case of
construction management is presently starting to get popularity. Nowadays, the preliminary

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applications of BIM in the construction phase are: connecting, identifying and resolution of
coordination subjects, construction sequencing plan, and replacing the fabrication shop
drawings by a detailed three dimensional model. All these usages need a just great level of
detail in the components of model, as well as they are frequently performed with models which
a subcontractor might previously have generated specially for these causes [5].
During the construction phase, the most vital task is preparing a schedule which is created at
the onset of a project by a member of the construction management team. The flaws of the
aforementioned schedule would be decreased through using BIM due to two facts. First, there
would be more time for construction manager to coordinate other tasks. Second, through
enhanced visualization which is linked the schedule to the vital construction, many of schedule
misinterpretations mitigated. In consequence, there is a necessity to use a powerful tool for
construction managers allowing a design team to share, combine, review and correct a BIM
model. To achieve these goals, Naviswork would be fully beneficial; however, it is not
modelling software. It is capable of compiling and linking modules to a schedule in order to
have a schedule animation [6].
2.1. Managing the Project Team
Managing the project team applies to the interplays leading between the contributors on the
project for design and construction procedures. It can be significant to remember that the
project groups are working for the possessor and require keeping the possessor’s objective
obviously in mind when implementing the parameters of construction management in the
project. The project’s BIM plan should provide these targets and be the method with which
the group understands its objectives. In this case, the main concerns can be the connection
and coordinating subjects between the members of the project team.
Providing the work coordination between members of the project team is an extremely
precious BIM feature. Hence, a 3D diagram for a detailed project can rapidly and simply
disclose many project characteristics which otherwise can be hard to imagine in the model
of conventional 2D drawing. As well as, there are some model views that encourage the
interplay amongst the persons, who are responsible, to resolve obvious conflicts, or
converse other design and construction-related subjects. A conversation between the
adviser of design and sub-contractors based on the three dimensional (3D) formats can help
with communication of the designer’s intention and visualization of the special
construction or installation of processes before they can be to get placed in the field. As a
result, the BIM can act as a central point to relate and communicate amongst all members
of the construction team. The model is able to accommodate for visualizing the orderly

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construction schedule update; moreover, the look-ahead thoughts practiced at Lean
Construction [5].
2.2. Management of Construction Process
These procedures are frequently pertaining to the
mobilization of construction, scheduling and sequencing, purchasing, expense control and
analysing the cash flow, material handling and ordering, and fabricating and installing the
component. All these procedures have been evolving out of a require to do these activities
more efficiently, as well as this could only mean removing what is not necessary
something likes misusing in the form of time, in the materials, and resources; as adding
what can be desirable in the terms of materials, and techniques to a procedure and project
[5].

3. POST-CONSTRUCTION PHASE

Models of Building information are dramatically increasing to be popular with the tasks of
facilities management (FM). The ability of BIM for containing vast visual information
quantities has absorbed a huge amount of interest from units of facilities managers, operations
and maintenance. The advantages are homogeneous to those listed for the other project stages.
It can be frequently simpler for managing the tasks visually; utilizing the three dimensional
(3D) model, to enable to view definite features of management, helps one in visualizing it
oneself, and to connect it to others. This part is going to emphasize that control can be more
important than planning— data, operations, and process control [5].

3.1. Operations control

It considers the capability and ability for managing, for instance, project maintenance. The
BIM components can demonstrate that there are plenty of different kinds of information of
maintenance-related, for example, replacing the parts ordering, scheduling the maintenance,
past records of maintenance, as well as installing and maintenance instructions. Other data in
control definition can include furniture inventories, energy use data, allocating the space,
locations of personnel, and schedules of space utilization, etc.

3.2. Process controls

It considers the model used for controlling the heating and cooling systems, controls of security
system, access analysis, consumed energy analysis, and functional applications of the project.

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In many applications, managing the object model-based has been utterly novel yet, moreover
undoubtedly there will be wide improvements in the future. If any post construction while it is
using the BIM, is predicted, it can be effectively worthwhile for the project team to get this
survey in planning of BIM stage, accordingly, in the long run, it can be accomplished
efficiently.

4. IMPLEMENTATION OF BIM

The implementation plan will be straight following from the desirable objectives for the BIM
and the characteristics of the model. This plan can explain the deliverables, the procedure
needed to create the desirable consequences and output from the BIM, and the resources
compulsory for accomplishing these objectives. For succeeding the plan at this stage, it can be
significant to identify the determined requirements for information as well as the associated
formats. Each objective should have an obvious result explaining the methods and efforts
needed to understand it. First of all, describing the deliverables is important. Second of all,
results the needed procedures for accomplishing the deliverables should be done. Finally, last
task includes the person’s selection on the team who can have best ability to provide the first
two steps. It is difficult to predict the future output; however, having a plan with detailed
information will help to better answer to the process circumstances as they present themselves.
The procedure of BIM is a planning and managing procedure in the building construction
projects, as well as it is significant for this procedure itself to be attentively planned and
managed [5].

SMART CONTRACT FOR SMART CITIES:

A smart contract is a computer program or a transaction protocol which is intended to

automatically execute, control or document legally relevant events and actions according to the
terms of a contract or an agreement. They are capable of facilitating an exchange of money,
property and anything else of value, ensuring the complete transparency, avoiding the service
and accompanying charges of middle man and eradicating the question of trust between parties.
The code of a particular smart contract include all the terms and condition agreed upon by the
parties and the information about the transaction itself is recorded in a block chain, a
decentralised, public distributed ledger.

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With advancement in technology, thing at changing at a great pace. It has been very hard for
Construction Industry to cope up with the pace of changing circumstances. Especially if we are
talking about contracting term, each day construction industry is facing some new changes in
government policies, some difference in environmental policies and much more. To overcome
all, we need to have a perfect database system which will automatically initiate the responses
to the system and avoid any future conflict between the client and the contractor.

Background

The term “SMART” stands for Strategically Managed, Aligned, Regenerative, Transitional.
Smart contracting is a balance approach that considers technical, legal, business and human
issues in the development of more effective contacting approach while recognising the need to
accommodate ongoing changes. We need to apply principles and manage the detail depend on
what we want to achieve and how much latitude we have to adapt corporate procedures.
SMART Contract first came into picture in 1994 by Nick Szabo. According to him it is
“computerized transaction protocol that executes the terms of a contract. The general objectives
of smart contract design are to satisfy common contractual conditions (such as payment terms,
liens, confidentiality, and even enforcement), minimize exceptions both malicious and
accidental”.
Further the main features are described as; it is in computerized structure and is implanted as
code in equipment and programming. The presentation of the agreement and the arrival of
instalment and different activities are empowered by innovation and rules-based tasks. Finally,
the smart contract is irreversible as, once started, the results for which a smart contract is
encoded to perform can't commonly be halted.
In simple words, smart contracts are those which are fully executable without human
intervention. Smart contracts do not necessarily require that people understand how they work.
This idea that complexity should be automated where possible is replicated in popular mobile
app such as OLA.

How smart contract work?

Smart contracts are neither really "smart" nor contracts in the legal sense. They're no more than
business rules translated into software.
People often ask what makes smart contracts different from business rules automation software
or stored procedures. The answer is that conceptually, the principle is the same; but smart

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contracts can support automating processes that stretch across corporate boundaries, involving
multiple organizations; existing ways of automating business rules can't do that.
In other words, because smart contract code is running atop an open block chain ledger, rules
can be applied not only within the corporation that coded the smart contract but to other
business partners permitted to be on the block chain.
In other words, they're code that does what it's been programmed to do. If the business rules
have been defined badly and/or the programmer doesn't do a good job, the result is going to be
a mess. Even if designed and programmed correctly, a smart contract isn't smart – it just
functions as designed.
Translating business rules into code does not automatically turn the result into a legally
enforceable agreement between the parties involved (which is what a contract actually is).
Although there are some initiatives aimed at making smart contracts automatically legally
binding.
Simply put, smart contracts work a lot like vending machines. You just drop a required amount
of a cryptocurrency into the smart contract, and your escrow, house ownership right, driver’s
license, or whatever else drops into your account. All the rules and penalties are not only pre-
defined by smart contracts but are also enforced by them.

A smart contract can work on its own, but it can also be implemented along with any number
of other smart contracts. They can be set up in a way when they’ll be dependent on one another.
For example, successful completion of one particular smart contract can trigger the start of
another one, and so on. In theory, whole systems and organizations can run entirely on smart
contracts. To some extent, this is already implemented in various cryptocurrency systems,
where all the laws are pre-defined and because of that, the network itself can function
autonomously and independently.

Objective of Smart contract:

Essentially, there are three integral parts, also referred to as objects, to every smart contract.
The first one is signatories, the two or more parties using the smart contract, agreeing or
disagreeing with the terms of the agreement using digital signatures.

23
The second object is the subject of the agreement. This can only be an object that exists
within the smart contract’s environment. Alternatively, the smart contracts have to have
unhindered and direct access to the object. Even though the smart contracts were first discussed
back in 1996, it was this particular object that stalled their development. This problem was
partially solved only after the first cryptocurrency appeared in 2009.

Finally, any smart contract has to include specific terms. Those terms need to be
mathematically described in full and using a programming language that is appropriate for the
particular smart contract’s environment. This includes the requirements expected from all the
participating parties as well as all the rules, rewards and punishments associated with said
terms.

Environment

In order for them to exist and function properly, smart contracts have to operate within a
specific suitable environment. First of all, the environment needs to support the use of public-
key cryptography, which enables users to sign off for the transaction using their unique,
specially generated cryptographic codes. This is the exact system that the absolute majority of
currently existing cryptocurrencies is using.

Secondly, they require an open and decentralized database, which all parties of the contract can
fully trust and which are fully automated. Moreover, the entire environment itself has to be
decentralized for the smart contract to be implemented. Block chains, especially the Ethereum
Block chain, are the perfect environments for smart contracts.

Finally, the source of digital data used by the smart contract has to be completely reliable. This
entails the use of root SSL security certificates, HTTPS, and other secure-connection protocols
that are already being widely used and are being implemented automatically on most modern-
day software.

Benefits of Smart Contract

By applying smart contracts in our day to day life, we can make phenomenal changes as they
offer multiple advantages over the traditional contracts. Smart contracts are more convenient
and faster which make those acceptable for people to streamline their workflows.

24
They provide us with the right blend of security and ease of application as and when you need
to exchange anything of value be it property, money or shared.
Eliminating the need for intermediaries make smart contracts even more attractive to apply in
our lives. The usage of smart contracts is likely to gear up with the advancement of technology.
Let us look at the benefits offered by smart contracts:

Transparency
One of the basic characteristics of block chain, technology which is also shared by smart
contracts is transparency. As previously stated, smart contracts are filled with terms and
conditions in absolute detail which are also checked by the parties involved in the agreement.
This eliminates the chance of dispute and issues at the later stages as the terms and conditions
are thoroughly checked and put into place only when all the participants agree to those. This
trait of smart contracts allows the involved parties to ensure transparency during transactions.
Time-efficient
In order to go ahead with any process involving documentation, it usually takes more than at
least a couple of days. The delay in processes is due to a lot of intermediaries and unnecessary
steps along the way. On the other hand, smart contracts are run through the aid of the internet
as they are nothing but pieces of software code.

25
Therefore, the speed of completing transactions through smart codes is way too fast. Smart
contracts can save hours or even days as compared to any traditional business process.
Moreover, the time delay due to manual involvement is also eliminated.
Precision
A smart contract is coded in an explicitly detailed form. It requires to holds all the terms and
conditions in it before it is finally put to work. Any condition that’s left out of the contract
might result in an error while execution, therefore while creating smart contracts, all the
conditions are put in the detailed form.
Safety and Efficiency
Smart contracts with automated coding features are the safest options when it comes to data
encrypted technology in the current times. Since they match the highest safety standards, the
level of protection involved in them allows them to be secure to use for critical processes.
Data Storage
Smart contracts are accurate and precise to the minutest level of the agreement. All the details
of any transaction are stored on the contract and anyone among the involved parties can access
it at any given time. Moreover, these transactions are stored on the block chain in the form of
future records. This is particularly helpful in terms of any dispute regarding the contract terms
in the future.
Savings
Using smart contracts in place of traditional agreements can result in a lot of savings. First and
foremost, as smart contracts only involve parties that are the part of the agreement; the need
for middlemen is eliminated and the money involved in that is also saved.
All the lawyers, witnesses, and intermediaries have no role when smart contracts are used.
Moreover, as stated earlier, smart contracts also save money as paper-based documents are not
involved in any processes.
Trust
The properties of transparency and security make smart contract trustworthy in businesses.
They obliterate any probability of manipulation as well as manual errors and establish
confidence in their execution. Upon agreement on all the conditions, the contract automatically
executes itself.
Another unique feature of these contracts may be their capability to significantly lessen the
requirement of litigation and courts. Self-executing Smart Contracts allow parties to commit
and bind by the conditions and rules written inside.
Paperless

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As smart contracts are computer coded documents, the use of paper in the entire processes is
eradicated. On one hand, this saves the cost while on the other, this is useful for companies
globally as it helps them to save their bit of paper usage in terms of contracts and promotes
their contribution towards the society.
EXECUTION OF SMART CONTRACTS AND BIM THROUGH THE INTEGRATION
OF BLOCK-CHAIN TECHNOLOGY:
Block-chain can currently be considered as the main technology characterizing the digital
transition observed within the most advanced world economies. Block-chain is a methodology
capable of managing contracts and transactions through which assets are organized and
guarded, social actions are governed and relations between nations, institutions, and individuals
are guided. In an expanding construction sector, the maintenance of trust among stakeholders
is difficult, the links are too complex hindering the information sharing with consequent waste
of time and process costs (Institution of Civil Engineers, Block-chain technology in the
construction industry 2018); traditional information-sharing methods can influence negatively
trust among participants, supply chain control, and asset management. The actual BIM
approach to the project guarantees the digital information exchange, offering a single database
containing all the data created and shared by the operators during all phases of the construction
process (Hsiao 2016). Building Information Issues such as model property, right of
modification and error responsibility, make it legitimate to assume an integration between BIM
and Block-chain in order to overcome those limitations. In this dynamic context, Block-chain
stands as a solution ensuring a transparent and precise information distribution among the
participants by diverting the control of information by a single subject.
Block-chain as a Distributed Ledger Technology (DLT) is a distributed data logging and
maintenance system, that depends on and is ensured by the consensus mechanism implemented
by the agents.
Block-chain can be defined as a system that allows the data acquisition in a computer format,
making it true and unchangeable thanks to the verification, validation, and control process
carried out by the entire network through the consensus mechanism, and not by a third party
(Kshetri 2017). The recent fast spread of the technology is mainly due to the benefits offered
by its use, such as:
Intermediaries elimination;
Information inalterability;
Information traceability

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 Fig. Block-chain opportunities
Integration between Smart contracts and Block-chain:

While Block-chain could solve some of the issues that arise with the use of BIM, one of its
protocols has the potential to revolutionize the relationship between construction projects and
to establish longstanding contractual procedures. Thanks to its programmable nature, the
Block-chain allows the proper use of Smart Contract, i.e., contracts written in code capable of
executing the clauses established and shared by the contracting parties automatically and
independently. The implementation of a Smart Contract promotes the representation of clauses
in the form of structured data executable by means of computer protocols with a high degree
of accuracy compared to those defined by traditional language (Giancaspro 2017).

Fig. Smart contracts based on block-chain

Integration between BIM and Block-chain:
Considering BIM methodology as a shared database among the project participants aimed at
exchanging information on each process phase, it is fair to assume the activities of sharing,
managing, and recording data by means of an information model supported by the Block-chain
(Turk and Klinc 2017).
Since both the BIM approach and the Block-chain technology are based on the creation and
management of a single source of information related to the process, it is legitimate to assume
and investigate how to integrate them during the execution of the construction process. Due to
the comparison and coordination of multiple disciplines, construction projects are often

28
characterized by a large amount of data that can be stored in the BIM model, and ensured from
the point of view of reliability and transparency if stored in the shared register offered by Block-
chain. The combination of the information model and the distributed digital database makes it
possible to create a single effective shared source of information relating to the project. This
source can, therefore, be considered as the only source of truth that guarantees the data
reliability, the congruence of the sources of information and the identity of the subjects
responsible for the activities.
In this innovative context, the project BIM model is the only source of information, accessible
and consultable by all participants, composed of reliable and unchangeable data. Since any
information stored in the Block-chain database is traceable and unchangeable, time wasted and
redundant verification of shared data due to frequent lack of trust among project participants
are eliminated.

Fig. BIM and block-chain coordination

Benefits in the Construction Process:
1. The coordination between the BIM model and the distributed database containing all the
process information ensures the creation of a single and reliable register, establishes a
collaborative environment among all participants and defines transparently the
responsibilities and duties of each, reducing or eliminating the emergence of any
misunderstandings and subsequent conflicts between the parties.
2. To support the creation of a collaborative environment, the distributed database allows to
store and trace the information intellectual property contained in it and entered by each
party of the process.
3. If the two benefits illustrated above are mainly attributable to the design phase, the
implementation of Smart Contract associated with the evolution of the BIM model is also
relevant during the construction phase. The simultaneous progress between the BIM model
and the execution of a Smart Contract makes it possible to automate all the delivery phases.
29
 Fig. BIM enables block-chain technology
The relationship among the parties involved in the whole process is often characterized by the
presence of asymmetrical information during the design, tender, construction, and management
phase, generating conflicts and mistrust with consequent impediments to the contract
execution. For these reasons, the integration between the BIM model and the Block-chain
illustrated so far is useful in making the activities carried out during the process explicit and
visible, highlighting the honesty of those who act.
Construction methodology by integrating BIM and Smart contracts using block-chain:
The 4D and 5D dimensions model development allows to update and monitor the construction
phase progress. The BIM model allows us to understand the actual construction works state,
and the continuous information storage allows to understand the causes and trace those
responsible in case of delays or budget excess. In this way, the client can control the actual
activities progress and the sharing of information relating to the construction site is immediate
and transparent.
The Block-chain used during the construction activity is also useful in controlling the supply
chain: materials that arrive at the site are traced along the entire route and therefore in case of
defects or delays you can consult each stage of processing that was recorded on the Block-
chain database and then connected to it internally to the BIM model (Kouhizadeh and
Sarkis 2018).
Finally, the record of both supplies and work status information allows the Smart Contract to
be performed correctly. The connection between the information model, i.e., the activities
progress, and the computational contract allows automatic payments to be issued whenever the
milestone set by the work program is reached.

30
The possible uses and therefore the advantages that can be obtained through the BIM model
development to support all the contract execution phases—design, commissioning,
construction, and management of the asset—based on the distributed database Block-chain are
highlighted.

Fig. BIM and Block-chain in contract execution phase

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Conclusion:
The topics discussed in this paper demonstrate how the BIM model and Block-chain
technology integration can offer benefits and add value to the main stages of contract execution.
The BIM model can either incorporate information from Block-chain distributed ledger, or
send to Block-chain information about model changes that need to be updated and used later
in the execution of Smart Contract, for the automatic release of payments or the definition of
new supply orders (Carson et al. 2018). The construction sector has always been characterized
by aspects that, due to ambiguity or incompleteness, often generate conflicts during the contract
execution. The potentials offered by the Block-chain and BIM model development allow to
address positively the aforementioned problems thanks to applications that allow to streamline
and improve the contract management, ensuring transparency in information sharing and
traceability.
The integration between Block-chain technology and BIM is a key step in the sector progress:
it creates a single source of true information about all aspects of the process, giving the digital
project model the only reliable tool to support the development and management of all phases
of the construction process—from the design phase to the operation along the whole lifecycle.
In addition, in the presence of system terminals equipped with smart interfaces, it is possible
to envisage the execution of Smart Contract for maintenance work on plant devices in the
building. Once the intervention has been carried out, in fact, the maintenance technician can
insert the activity carried out into the machine, which confirms the fulfilment of Smart Contract
clauses, automatically releasing the payment.

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