Research On Engineering Project Organization: Toward Governance Theory

Project management had been studied during the second war, after that , it has been developed for over sixty years and now a suit of a management system has been built up. But why do we need to introduce project governance? First, contrasted with the rapid developing project management technology, the project theory involving the nature of project is developing slowly. Second, as for a engineering project, it becomes more and more complex and it becomes specialization and market increasingly, so it calling for the project theory to conduct it macroscopically. And also the project organization has possesses the similar nature of corporation, so it is naturely to introduce the governance theory to the study of project theory. The third, as for China, during which has changing social system, corporation governance is a extrusive problem. In the same way, the governance problem caused by ambiguous property right and incomplete contract has appeared in the engineering project. Through the three reasons, the author regard that it is not only necessary but also feasible to introduce the governance.How to build up the engineering project governance? The paper gives the follow steps:(1) We abstract the traditional engineering project process and build a framework model, on this model, the nature of engineering project is explored.(2) Contracting reasons cause corporation governance, the same elements cause governance also exist in the engineering project.(3) Distinguish the engineering project governance and engineering project management to build the border of the paper. Moving forward, the paper analysis the goal the main body and administrative levels of engineering project governance.Similar with corporation governance, engineering project governance is divided two administrative levels: interior governance and outer governance. The main body of the interior governance are the owner, contractor, designer supplier of the engineering project, agency problem and incomplete contract are the main reason which cause the interior governance, the forms of governance includeThe main body of outer governance include government,bank,users and community which exclude the main body of the interior governance. The reason causes outer governance is the property of the project is enlarged. The stakeholders exert their governance right by creditor's right or influence of the stakeholders. The forms of governance include formal institution informal institution...