With OCBC’s blockchain-based conditional payments solution, the mobilisation advance payments are automatically disbursed to the intended contractor once the smart contracts verify that the conditions are met.
The Land Transport Authority of Singapore (LTA) will be piloting a blockchain-based conditional payments solution from Oversea-Chinese Banking Corporation (OCBC) to disburse mobilisation advance payments efficiently with greater transparency to its main contractors.
Often amounting to millions due to the scale of the construction projects, mobilisation advance payment helps the main contractors defray heavy upfront capital outlays at the start of their construction project, and is usually a percentage of the total project value.
