| Construction industry is one of the pillar industries. However, during the developing phase of Chinese economy, no matter how prosperous the construction market is, the construction industry is always an industry with low earning, low efficiency and low added value. With China entering into the industrialized rapid growing path, the Chinese construction market stepped into its golden age, the size of construction output expanded continuously, but the growth rate of the added value of construction industry is rather slower than that of Gross Domestic Product (GDP). This is mainly because of the deviation between the cost of construction products and their real value, except for the influence of construction products and their product process characteristics.Therefore, this paper considered the characteristics of economic activities in construction industry, and studied the construction products price and related issues, then conceived and demonstrated the resolving channel and method for the deviation problem between construction products prices and their values based upon the theory of price, theory of value chain and theory of value innovation with combining the research method of theory analysis and empirical studies. Furthermore, this paper studied and developed the value added space and operation technique for high value-added EPC mode. The main research results include:1,Based on the theory of price and the characteristics of performing stage by stage and multi-stakeholders participating during construction, and on the premise of market transaction behavior, the connotation of construction cost from viewpoint of owners and construction product price were defined. Base upon the analysis on components of construction product price from construction enterprises, pricing method and pricing ground, it was found that they were the main reasons of cost deviation from value that construction products were priced only by cost factors, technique contents of construction technology can hardly effect the pricing level and the operation method resulted in over competition. The research results provide the basis for seeking the resolution channel and method to resolve the construction production price problem.2,By the analysis on the value chain of construction products and the value added activities of construction enterprises, the supply-demand relation of construction market was demonstrated to be basically balanced grounded on the employees size, and the new conception of operation regulation and environment development to solve the problem of construction price deviating from the value was proposed as:(1) Increase the construction industrial concentration; (2) Determine the fault liability responsibility of the owner of construction projects choosing contractors legally; (3) Loose the project contracting mode restrictions considerably for private investments base on the self regulating mechanisms; (4) Increase the efficiency of construction enterprises value added activities by means of scientific productivity organizing mode; (5) Develop and adopt high value added operation mode with integrated management functions.3,According to the analysis on industrial value chain, enterprise value chain, construction products value chain and their inner connections, the value added model, organization structure model and economy distribution model were established for EPC mode. The operation techniques for EPC contractors were demonstrated and developed based on the owner requirements and supervising mode, including:(1) Formulate multi-dimension integration cost management WBS system with WBS principle lists and supporting lists developed from project cost WBS and it coding system, which can avoid information isolated island effectively and thus control project cost effectively. (2) Propose the method of applying the technique of sign management into contract management and propose the operation rules of deep overlapping among design, construction and procurement, which can help to achieve the aim of EPC services successfully. (3) Put forward and verify the principle and operation approach of multi-project management under resource restriction using unbalanced matrix theory, which can solve the problem of multi-EPC projects operation. The research results achieved in this paper provide new knowledge to the field of construction economic and management. They have theoretical and application significance for solving the problem of cost deviating from value and for the construction industrial regulation-setting and for the big-sized enterprises operational strategy decision-making.
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