Iranian Sustainable Building Scientific Association International Journal of Urban Management and Energy Sustainability 2538-1628 6 4 2025 10 01 Evaluating Financial and Operational Challenges in the Replacement of Smart Materials in High-Density Projects (Case Study of Mehr Housing in Hamedan) 33 48 728564 10.22034/ijumes.2025.2056755.1304 EN Roya Sadeghi Fereshteh Department of Architecture, Faculty of Dr. Ali Eqbali Sustainable Development, University College of Omran_Toseeh, Hamedan, Iran 0000-0003-2816-5926 Journal Article 2025 04 19 The increasing prevalence of smart materials in construction signifies a pivotal shift towards enhancing building performance and sustainability, particularly in high-density projects where operational complexities abound. This research examines the financial and operational barriers encountered in the replacement of traditional materials with smart alternatives, focusing on the Mehr Housing Project in Hamadan, Iran. Utilizing a mixed-methods methodology, comprising a literature review, questionnaires, and structured interviews with key stakeholders—including contractors, project managers, and industry experts—the study identifies critical challenges, such as high initial costs, resistance from contractors, and a lack of specialized expertise in smart materials. The findings highlight that while the potential benefits of smart materials are substantial, their adoption is stymied by both economic and logistical hurdles. To address these challenges, the study proposes targeted solutions including the introduction of financial incentives to offset initial expenditures and a robust framework for training and capacity building among the workforce. By fostering an environment conducive to the integration of smart materials, this research aims to inform policymakers and practitioners on strategies crucial for enhancing the efficiency and effectiveness of high-density construction projects. Ultimately, the findings advocate for a transformative approach that aligns technological innovation with project management practices to optimize resource utilization and project outcomes in the built environment. https://www.ijumes.com/article_728564_d947ba0af2b7293f0dc39d14ebd37eae.pdf