A Study Of The Issues Of Investment Control In Government Projects

Government projects are an important national security and measures for the government, which can provide public services and improve the quality of life. Although the Government as the main provider of public projects is considered inefficient, the Government as to make up for "market failure" means has always played a role which can not be replaced. The key point is that how to control the costs of these projects effectively and to balance the contradiction perfectly between the equity and the efficiency while providing public goods. It is a global issue which also requires the long-term concern.In the past, the research of Government investment and control of investment focused on a technological paradigm of cost control. The current study demonstrates that the research of government projects and investment control are changing to management systems and mechanisms of government projects at deeper levels. Based on economic analysis paradigm, using of public project management theory and transversal analysis, causal analysis and so on, the problem of investment control in government projects are studied. The main work and achievements are as follows:1. Starting from the special contract relationship, the investment controlling system of government project is divided into three levels: administrative supervision level, project agent level and project contractor level, which are facing different problems of principal agent and investment control.2. The critical problem of the investment control in the first principal agent level of government project is the government failure caused by lacking of supervises from the initial principal in the public property rights. Based on the viewpoint of the government supervised theories like the congress control theory, etc. and the successful experience for reference, we construct the administrative supervision system of the investment project in our country, including the interior and exterior supervision systems. The core of the interior supervision system is the checks and balance mechanism and liability investigation mechanism between the government functional departments. While the exterior supervision system is combined with the people congress supervision and social supervision.3. The critical problem of the investment control in the second level contract relationship of the government project is the vacancy of project juristic person caused by the residual claim without transferability in the public property rights. The public project governance theory is applied in which the balance and coordination of each stakeholder is realized through the allocation of their authority, responsibility and profits. By analyzing the governance structure modes of the three modes of the agent construction system in our country, we figure out that the ownership allocation in the enterprise substitute construction mode is more advantageous to the investment control of projects. Further more, the investment control mechanism based on the risk sharing and the model of determining and adjusting the goal of the deputy construction project are constructed in this paper which realize the incentive compatibility of the government consignor and construction agents.4. Under the arrangement of the principal agent relationship system in the second level, the investment control problem of the contract relationship in the third level is transformed into the cost management and investment control problem with the limited risk sharing of project proprietor(construction agency). And the risk management and control problems of the contractor and owner contract in construction market are required to be solved. In view of this, under the initiative control perspective, the risk sharing and controlling based whole process investment control of the substitute construction enterprise considering the contract management as method is constructed in this paper.