The Study Of Construction Contract Bonding System In China

Based on the analysis of problems in Chinese construction industry, such as bad quality and nonpayment, and investigation on the underlying reasons with information economics theory, a conclusion is pointed out, that the old-time market signal system is disabled, and new one is lacked. A new credit instrument of construction contract bonds is being spread rapidly in our country.At the beginning of the creation of construction contract bonding system, although it has achieved a certain degree of success, as the reason of the lack of the experience and the faultiness of the system establishment, there are many problems in regard to market principals, laws and regulations and credit environments in the actual operations. Aimed at these problems, the paper proposes measures to improve construction contract bonding system.Via investigation and analysis on construction contract bonding system internationally, then a conclusion of the modes of construction contract bonding system our country should take is given, which mandatory conditional bonds with high penalty should be taken, the professional security agency is the main insurer, and the bank accessorial, a unified standard fees of construction contract bonds should be developed, bonds expenses reckon in construction costs, and borne by the owner. There is discussion furthers on to the risk management of the security agency and its credit rating system. With analysis on the risk factors of construction contract bonding market, the risk control mechanics of the security agency is indicated. Combining with its characteristics, the credit rating system of the security agency is creatively developed. I hope the results of this paper can provide useful references to the implement of construction contract bonding system in China.