A Study Of Equilibrium Of Incomplete Contracts In Construction

Construction is dispute-prone for the characteristics of long-duration and multi-participants. In practice, most construction disputes result from incomplete contracts. Therefore, how to identify and repair defects in construction contracts, which means to diminish the incompleteness of construction contracts, is becoming an urgent issue in the research field of project management. This thesis is aimed to get the nature of dispute facts and the construction contract mechanism which can be used to prevent or resolve construction disputes by classifying dispute facts.This thesis analyzes the incompleteness of construction contracts and the relationship between incomplete contracts and construction disputes. Incomplete contracts lead to lack of contract incentives and constraints out of control, resulting in construction disputes. This thesis discusses the characteristics of dispute facts through case study and raises contractual actions to reduce or resolve construction disputes. On the basis of the conception of construction contract equilibrium, this thesis develops a theoretical model and a practical model to ascertain the equilibrium and uses the practical model to analyze the"Conditions of Contract for Construction (Model Text), 1999", and make recommendations for improvement, which proves that the practical model is effective to determine the equilibrium point of construction contracts.