A Study On Entrusted Construction Patters In Government Investment Projects

Entrusted construction in government investment projects is a new mechanism launched by the government investment system reform. Various versions of "entrusted construction" are all beneficial trials of professional entrusted management over government invested projects. The so-called "professional" refers to entrust professional organizations to monitor the construction process. Entrusted construction also means trust system innovation by effective motivation."Entrusted construction" is a popular international practice, but just start to be applied in China. In operation, "entrusted construction" has 4 categories: users entrust non-government agencies to build through bidding, such as in Ningbo; government agencies entrust other internal governmental agencies to build, such as in Shenzhen; governments entrust the industrial enterprises to build, such as Shanghai Water Resources Management system; government investors entrust non-governmental agencies to build through bidding, such as HuilongGuan Project in Beijing. The author conducted a case study, sum up the experience and lessons and further discussed the implementation process of "entrusted construction". This paper concluded that no matter what specific projects are concerned, "entrusted construction" means market-oriented authority re-allocation, taking advantage of the human resource and expertise advantages in the professional institutions, offsetting moral hazards caused by asymmetric information, therefore finish the construction effectively. Compared with other traditional management methods, the author thought "entrusted construction" is a more scientific and advanced project management methodology worthy of being spread.