Drechtsteden

  • Digital match between contract, invoice and performance
  • Redesign of internal administration
  • First blockchain pilot within Dutch municipality

Blockchain Contract Engine

Drechtsteden consists of 6 municipalities that closely work together. In order to create efficiency, they established a shared government entity: the GRD (Gemeenschappelijke Regeling Drechtsteden). The structure of this entity however, is causing complexity in procurement and internal settlement. This complexity arises due to the use of systems which are not able communicate with each other; contracts, declarations of performance and invoices are therefore not centrally available. In addition, responsibilities for the execution of the work are shared between a vast amount of parties.

"Invoicing between our internal entities has become completely redundant"

We created a contract generator which connects directly to their internal financial system, and fully digitizes and automates their internal settlement and procurement process. All the important terms are provided at the start in the contract generator, including budget and its correct cost allocations, making invoicing redundant by approving the declaration of performance.

This digital transformation brings transparency to internal transactions and prevents alteration by applying distributed ledger technology. Both the buyer and the supplier agree on the execution of the project and how the administration will be processed, beforehand. Data is stored in a distributed system, however, all information is digitally and centrally available for those who work with the systems. It helps them to match the invoice with the declaration of performance, the budget and the contract. Resulting in relieving municipality employees from their administrative tasks.