Study On The Models And Organizations Of Our Country's Construction Bond

Construction bond is an important credit instrument to guarantee the performance of a construction contract. Nowadays, many problems exist in Chinese construction market, such as bad quality and non-payment, which obviously related with bad performance of contract. Based on the analysis on the models and market organizations of the construction bond, combined with our national conditions, a proposal that the models and market organizations of our country's construction bond is developed.Firstly, the mechanics of construction bond is analyzed from the view of information economics. Via analysis on the essential design factors and the develop reasons of construction bond. A conclusion is given that there are two equilibriums in construction bond market: conditional bonds with high penalty, or unconditional bonds with low penalty. Comparing with foreign construction bond models, according to the characters and performance conditions of the construction bond models, combined with our conditions, our country's construction bond models are designed: mainly applied the high penalty conditional bonds and low penalty unconditional bonds, but bonded contractor's bonds are included. Nowadays low penalty unconditional bond models are the mains, but high penalty conditional bond models will become mains many years later. This paper discusses on the market organizations of the construction bond also. It analyzes the American construction bond organizations in detail, then studies on the mainly market organization models of the construction bond: the bank guarantee models and the corporate surety models. Then it designs the corresponding organization structures and performance mechanics combined our national conditions, and puts forward the measures of developing market.