Passive radio frequency identification (P-RFID) is discussed previously for its sustainable usefulness in the construction industry. The subject of this research is the barriers to the implementation of passive radio frequency identification (P-RFID) technology for the digital transformation of small construction projects, and the interrelationships among these barriers. This study emphasizes notably smaller building projects. Considering technological, cultural, privacy, interest, volatility, and resource constraints that must be overcome to encourage the implementation of P-RFID in the construction business. A PLS-SEM analysis is also provided, showing how much technological, cultural, and privacy hurdles affect the P-RFID rollout. Most severely inhibiting adoption are technical obstacles, cultural ones, and privacy concerns. Findings stress the need of construction firms to adopt new technology to speed up project completion and keep up with rising demand. The use of P-RFID technology may improve the efficiency of project delivery processes and reduce the number of failed projects. Additionally, the research highlights the value of privacy as well as the need of making its protection a key priority in the development of P-RFID technology. According to the findings of the research, one of the most important things that has to be done in order to increase the usage of P-RFID in low-volume sustainable construction projects in Malaysia is to remove the barriers that prevent people from being interested in it. © 2023 The Author(s)