The Application Research Of The Theory Of Principal-Agent In Cost Control Of Construction Project

On the base of classified analysis on construction project cost in construction industry by the numbers, this paper applies the theory of principal-agent especially the theory of incentive compatibility contract based on the traditional "standard cost" control method to control and analyze the process of cost control. And aiming at the characteristic of cost control of construction project, the paper constructs construction project cost control incentive compatibility contract theoretically, and brings forward to two control methods which are simple,exercisable easily "directly optional contract" and "progressively optional contract". At last, based on one construction project offered by a construction enterprise, the paper applies advanced two cost control methods to warrant it. After analyzing the warranted result, the paper educes this conclusion easily which is that it is very effective on saving cost to apply the theory of principal-agent especially the theory of incentive compatibility contract to control construction project cost.