Study On General Contracting Construction Supply Chain Profit Coordination Model

The construction projects in China are facing many problems, including low level on technology and management, the construction cost overrun, long construction period, and poor quality and so on, because all stages of project implementation are separated, and lack systematic management ideas and methods, the another reason is lack of cooperative coordination mechanism, so it is particularly necessary to introduce supply chain management theory in the construction industry, and how to coordinate the participants to make them cooperate with each other to maximize the profit of supply chain has become important research of the construction supply chain management.This paper at first describes the research background and the research situation of the general contracting mode, construction supply chain, and supply chain coordination; and then establishes the profit coordination model between the general contractor and the subcontractor based on fixed-price plus incentive bonus contract on the background of general contracting construction supply chain, after solving the model, the author analyzes the variation tendency of revenue functions of the general contractor, the subcontractor and the supply chain with bonus distribution coefficient. The example gives specific function images, the results show that the members with higher efficiency or lower cost can get more profit, and when their strengths are different, the general contractor and the subcontractor have different bargain capacities; finally, considering the principal-agent relationship between the owner and the general contractor, and the interests of the general contractor and the subcontractor are closely linked, so the paper thinks them as a profit-relevant body—contractor, applies the agent theory to study the profit coordination problems between the owner and the contractor based on the fixed-price plus incentive bonus contract, the research results confirm that both the general contractor and the subcontractor have the impetus to improve their technology level, management level, and take risks.