Nepal's construction industry faces persistent challenges including payment delays, contract management inefficiencies, supply chain opacity, and systemic governance failures. Blockchain technology offers potential solutions through smart contracts, immutable record-keeping, and transparent shared ledgers. This paper systematically reviews blockchain applications in construction management and documented challenges in Nepal's construction sector from peer-reviewed studies. The review identifies four primary blockchain applications: smart contracts for payment automation, supply chain traceability, immutable document management, and shared transparent ledgers. Documented challenges in Nepal include payment delays (RII=0.80-0.92), contract management inefficiencies (78.6% expert agreement), low bidding averaging 37.52% below tender prices, NPR 20 billion in outstanding contractor payments, land acquisition taking 2-3 years, tree cutting approval taking 2 years, average project lag of 37 months with only 15% completed on time, and 17 National Pride Projects requiring 41 years to complete at current funding levels. Blockchain can strongly address payment delays, document coordination, supply chain tracking, and transparency. Blockchain technology offers targeted solutions for specific documented challenges in Nepal's construction sector.