Internet of Things (IoT) adoption in construction projects is hindered by key issues such as lack of data security, interoperability, standardization, awareness, and high costs, as highlighted by existing literature. Moreover, various works have proposed strategies to address these issues. Despite these efforts, IoT adoption remains low in construction projects. Therefore, this study aims to explore key issues and critical strategies related to IoT adoption in digital-based construction projects. Data was collected from 107 Malaysian construction professionals through a questionnaire survey using a systematic sampling approach. The collected data was analysed using mean score ranking, normalization, overlap, Kruskal–Wallis, and Spearman’s correlation analyses. The findings revealed fourteen key issues impeding IoT adoption and seven critical strategies to address these issues. Additionally, there are significant differences in opinions on five issues and two strategies. Also, seven issues and two strategies overlapped across clients, contractors, and consultants. Moreover, correlation analysis indicates a moderate to low interrelation between the identified issues and strategies. This study provides valuable insights for industry practitioners, policymakers, and researchers, offering a comprehensive understanding of key issues and critical strategies to enhance IoT adoption in the construction industry. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2024.