| At present, it is still common project management mode in China for the owner to commission the project to the contractor. On accepting the commission, the contractor will then be responsible for the execution of the project. Such professional division has inevitably brought various kinds of transaction costs to the project.Empirical studies and relevant statistical data show that these transaction costs do not only exist, but are also of huge amounts. High transaction costs reduce the performance of the project, and hamper the realization of the economic objectives the owner as an independent economic individual. Therefore, to look into the causes of such transaction costs and to seek appropriate means to reduce these costs has become a matter of concern.Based on the transaction cost theory (mainly transaction cost economics, TCE), this paper makes some primary study of the above issues:First, define and classify the various kinds of transaction costs which may occur during the execution of the project.Second, analyze the forms in which the five key factors causing transaction costs manifest in the execution of construction projects, and how these factors interact and eventually lead to the transaction costs; and how the institutions, the relationships between the owner and the contractor, and the owner's management of the execution process can effect the transaction costs.Finally, give out the outline of controlling transaction costs through the construction of credit systems in the construction market, the establishment of strategic relationships between the owner and the contractor, and the improvement in the management of the procurement process of the project.Through the research of the causes and the control means of the transaction costs in the execution of construction project, this paper seeks to provide some insight for both the practice and theoretical study of the issue of controlling such transaction costs in the construction management field. |
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