Optimizing construction supply chain efficiency: a blockchain and digital twins approach to automating cost management and contract administration

Purpose This study aims to improve the efficiency and transparency of cost management and contract administration in public construction supply chains. It responds to demographic and infrastructure challenges by proposing an automated, fair and data-driven approach to cost allocation using emerging technologies. By integrating blockchain, digital twins and smart contracts, the study seeks to minimize financial disputes, accelerate payments and optimize stakeholder coordination in complex construction projects. Design/methodology/approach A hybrid model is developed that combines blockchain technology, digital twins and game theory to automate supply chain cost allocation based on each stakeholder's contribution. Smart contracts ensure tamper-proof, real-time execution of agreements. The model is validated through simulation and real-world application in a solar-powered public building project in Irbid, Jordan, funded by the Climate for Cities (C4C) program. Quantitative metrics were used to assess performance improvements in dispute reduction and payment timeliness. Findings The integrated model led to a 30% reduction in financial disputes and a 25% improvement in payment timeliness, demonstrating its potential to resolve inefficiencies in traditional cost allocation methods. The implementation confirmed that automating contract execution through blockchain, coupled with real-time data from digital twins, enhances trust, fairness and operational efficiency across public construction projects. Practical implications The proposed model offers a replicable framework for public sector organizations and contractors aiming to digitize and streamline contract administration and cost management. It reduces administrative burdens, mitigates payment delays and supports more equitable financial accountability. Its success in a real municipal project suggests broad applicability for managing complex infrastructure systems, particularly in contexts affected by demographic and governance challenges. Originality/value This research uniquely integrates blockchain, digital twins and game theory to address long-standing issues in construction supply chain transparency and efficiency. Moving beyond conceptual models to practical deployment in a donor-funded public infrastructure project provides robust evidence of feasibility and impact. The study offers valuable contributions to the discourse on smart construction, sustainable urban infrastructure and digitally enabled contract governance.