Research On Construction Contract Risk Based On Structural Equation Model

Because of the managemennt of construction contract and contract risk islargely ignored, disputes of construction contract have been increasing year afteryear. Many experts and scholars have made studies of the identification, evaluation,controlling and decision-making model of the engineering project risk factors.However, few contract dispute cases have been used in research of constructioncontract risk. Therefore, case analysis and risk management are being consideredcomprehensively in this paper, and corresponding risk coping strategies are putforward to control the contract risk through risk factors identification, evaluationand simulation.In this paper, the following questions are studied. Firstly, based on the existingresearch at home and abroad, this paper studied the theory and methods of riskfactors identification and analysis. Secondly, this paper identified the risk list ofconstruction contract by studying nearly100cases of construction contract disputeand made a questionnaire investigation. The risk list contains the environmental riskfactors, the engineering risk factors, the risk factors brought by the employer andcontractor and the contract risk factors. Then, this paper analyzed the interactionrelationship of the construction contract risk and the contract execution by usingstructure equation model and draws the path graph. On this basis, this paper useSPSS17.0for the preliminary statistical analysis of samples, and AMOS17.0for theconfirmatory factor analysis. Finally according to the conclusions this paper putforward suggestions to reduce or avoid the construction contract risk.This paper finally draws four kinds of risk factors that affect the performanceof the construction contract:environmental risk, engineering project risk, the riskbrought by the employer and contractor and the contract risk. They may lead tovarious types of contract disputes. Therefore, contract managers should takemeasures to deal with it.