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Research On The Selection Problem Of Construction Project Organization Contract

Posted on:2004-06-17Degree:MasterType:Thesis
Country:ChinaCandidate:B F GuoFull Text:PDF
GTID:2156360095460337Subject:Business Administration
Abstract/Summary:PDF Full Text Request
This article analyse the structure of production of construction project and the problem of contract selection relevant to it, using mostly the principal-agent theory and the theory of transaction cost. The various forms of contract of construction project organization are dissimilar result selected by the parties selection under limiting condition.In this paper, we analyse the various limiting conditions in the course of production of construction such as asymmetric information, risk of nature, the risk of joint responsibility under regulation and tiny profit project, etc., and debate deeply the enterprise how to arrange structure of production, and the parties how to select contract under these limited conditions in construction production. We think, the essential means solving the principal-agent problem, is that the bosses take part in management by themselves, and pay fixed wage for the construction project manager, the bosses earn all the profit and risk, and the Pareto Optimum can be realization in this classicality enterprise model .If the bosses do not take part in management but consign the operation to the construction project manager, the Pareto Optimum contract of sharing risk can't come true, thinking about the needs of inspiriting project managers, sharing external risk and evading joint responsibility under regulation, the sharing system will be second-best selection. At the same time, we use the theory that the sharing system has higher transaction cost to explain the reason of the subcontract. The subcontract practising quota system, may save transactioncost, so it is accepted widely. I bring forward the concept of executing right of construction contract before analysis, it is the tool that we explain three modes in construction production, firstly bosses taking part in management, secondly consigning the management task to project manager, and finally transfering the right to market.We have researched contract in reality world in this paper too. The fact is:in private enterprises, the bosses often take part in management, and pay fixed wage for project managers; but in bigger scale firms, operation are often consigned to project managers who have the right of sharing residue profit. There is a extremeness, the firm contract with a few little profit projects because of competition, in order to exist,they gain income by venturing to execute quota system. We analyse the characters of 24 shares of stylebook of sharing contracts and quota ration contracts on hand too; at the same time, we have discussed a case of self-executing contract of construction project organization.It has important reality significance about how to manage construction industry by analysis in this paper. We give some advices to over come this problem.
Keywords/Search Tags:theory of contract, transaction cost, principal-agent, the contract of construction project organization
PDF Full Text Request
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