Study On Mechanism Of Construction Engineering Employer Payment Bond

There are so many risks in the whole process of construction, from planning and preparing to putting into use, because of the large amount of investment, the long period of construction, multi-participators and etc. Credit risk is one of them. Nobody can forecast whether the employer will pay for the construction project according to schedule. During these years, employers of our country default contractors account payable frequently and sometimes even for several years, which also causes the default of farmers' due. Government pays much attention to how to solve the problem. It is necessary to inhibit employers' poor behavior by setting valid assurance system or risk-transfer system.It is an important way to solve the credit risk of participators by guarantee. The theory of economics is used to analyze the reason why employers are not creditable enough to take delight in achieving contracts before they sign agreement and the immanent motivation of employers' breach of faith. Further more, it also expatiates the mechanism that how employer payment bond resolves the problem that employers default contractors' due, which provide frame of reference to put employer payment bond into practice in our country.Further discussion about the pattern of employer payment bond is conducted. Multi-participators are also analyzed. Much attention is paid to look for the reason why the native "engineering lien" is not so effective to protect the contractors as American "mechanic's lien" does. The improvement is advised.In addition to analyzing the implement process and related main factor of employer payment bond, discussion of the related law and fee is conducted in order to put the mechanism into effect. A new financing method and the favor transfer of government project are mentioned.