Research On Management Model Reconfiguratoin And Operational Mechnisms Of Highway Project Constuction Based On Transaction Cost Economics And Mechanism Design Theory

Highway project management model is the sum of a relationship of highway projects stakeholders based on the government institutional arrangements, it determines the highway project stakeholders’ responsibilities and rights in capital formation, operation, possession, disposal in the whole life cycle. China’s highway has developed nearly 30 years, its management mode studied generally from two aspects including financing mode and transaction mode. From the perspective of financing mode, single investment by the government has developed to the project legal Franchise including BT(Build-Transfer)、BOT(Build-Operate-Transfer)management mode, investors and financing channels are increasingly diversified. From the perspective of trading patterns, highway projects have traditional DBB(Design- Bid- Build) mode, Construction general contracting mode, the Design Procurement Construction general contracting mode of EPC(Engineering Procurement Construction), and professional project management company to organize the implementation of project Construction and investment management model of "agent". Various financing and trading patterns determine the governance structure and management mechanism of highway projects, and then determines the realization of the highway project management goals.While the rapid development of highway, various problems are endless, such as rough management, project Investment costs than expected, construction period is slack at the beginning and has to speed up towards the end, the poor quality of part of the projects, operation and construction come apart each other which will increase the operating maintenance cost and reduce investment income, power rent-seeking gives rise to corruption. These problems not only led to many researchers, but also aroused the interest of practitioners to explore new management model. For example, Chongqing Highway Group Co., Ltd has been exploring a new pattern of highway project management in recent years(BOT + EPC mode), This paper named combined construction general contractor mode(called “CCGC” mode for short).CCGC mode is a kind of project management pattern take value innovation as the core concept. This model integrates investors and contractors, and makes project financing mode and trading structure all in one. The project use the way of design and construction general contracting, contract to the general contractor at all, general contractor is also one of shareholders who have franchise rights of highway, and shares the incomes from investment and management risks with other shareholders during the life cycle of the project, this management model has brought a new governance structure and management mechanisms to the highway project management.This paper follows the research path of "Generalize scientific issues from practice → Carry out theoretical analysis → And then return to the practical application", take value innovation of highway project management model as the purpose and main line, study on the mechanism and operation mechanism of CCGC mode. Firstly, reconstruction of the theoretical model of project management, and recognition value chain of highway project management. Then, mechanism mode of CCGC is analysis by TCE(transaction cost economics) and MDT(mechanism design theory), construct project management model evaluation system. Fuzzy comprehensive evaluation and data envelopment analysis ways are used to evaluate the merits of project management, to identify comparative advantages of CCGC mode, revealing the action mechanism of CCGC mode. Finally, based on the basic concepts and principles of CCGC mode, summarized its operating mechanism in the governance structure and organization, motivation and control mechanisms and core competencies.The main innovation of our work includes the following three aspects:(1) Reconstruction of the highway construction project management, from the new perspective of the value chain analysis, analyze its operation and pros and cons compare to different management models. Firstly, The “BOT+EPC” mode explored by Chongqing highway group Co., Ltd is named as “CCGC” mode, interpret and demonstrate the ins and outs of this innovative model more comprehensive and rigorous. Secondly, the introduction of value chain analysis framework, building value chain model highway construction project management, construction management and analysis the differences and the pros and cons between the traditional general contractor and CCGC mode. Thirdly, take value innovation as the main line, integration and internalization of the main process activities and support activities of the value chain, build the value chain platform including the contractor, supervision units, design units, government and other stakeholders to achieve trend value of multilateral body work together to create and distribute.(2) TCE and MDT is introduced, construct the corresponding theoretical model, profoundly reveals the inherent law and the basic principles of CCGC mode.Firstly, the value chain activities of highway construction projects is divided into five stages including preparation, design, construction, inspection and operation by project life cycle, in-depth analysis of transaction costs between CCGC model and the traditional model of DBB, it reveals the new law of CCGC mode reduce transaction costs and improve transaction efficiency through economies of scale and internalizing activities. Secondly, identify transaction costs projects in the value chain activities with the management accounting methods, measuring transaction costs use empirical method, and comprehensive indexes of transaction efficiency to compare the merits between CCGC model and the traditional model of DBB, and obtain empirical conclusions use comparative multiple case study method for the specification. Thirdly, use of mechanism design theory, trying to build a utility function model level of contractor effect consistent with the interest of the owner, and to explore the level of effort and its management implications of owners and contractors in different assumptions. The study demonstrates the mechanisms designed of CCGC mode could avoid many unreasonable rent-seeking behavior, and new principle of incentive general contractor to reduce costs more aggressively, optimize the allocation of resources to achieve a value innovation.(3) Index system is system constructed to evaluate this new management model, new mechanisms and new ways to implement the model are proposed. Firstly, construct a index system proper for evaluate the merits of the highway project management, using the relevant data collect by questionnaire method, application a comprehensive analysis method named FCA-DEA, use of different modes of highway projects case to assess the merits of the project management model. Secondly, induction and deduction of new mechanisms and new methods of CCGC mode, analyzes the ideas of value innovative to be followed by CCGC mode, design scientific governance structure and organizational, to develop a reasonable incentive and control mechanisms, training core competencies of the program participation body. The research work commit to sublimate innovative approaches and experience of national highway project management, and better security in implementation and application of CCGC mode.