Construction Project Management Organization Innovation Based On The Transaction Cost Theory

Improving Owner's need enforces project management organization to innovate in construction market. Combining international status in quo—construction supply chain, dynamic alliance, applying Partnering and construction project transaction pattern, this thesis defines and studies project management organization innovation from two latitudes—project management mode and project management organization culture and from four aspects—project organization structure, execution process, principal-agent relationship and contract system arrangement. Through analyzing the relationship between transaction cost and organization innovation based on transaction cost theory, the author points out that decreasing transaction cost is the driving force for construction project management organization innovation. Based on the two latitudes and transaction cost theory, project management mode and Partnering are analyzed. Traditional mode evolving into general contracting mode is an innovation on project management mode, and reduces project transaction cost by means of contrasting the transaction cost between general contracting mode and traditional mode. Partnering is an innovation on project management organization culture. Partnering changes the relationship among project stakeholders through establishing trust, and reduces construction transaction cost finally. After analyzing the feasibility of Partnering in China, Partnering is integrated into general contracting mode and an innovational project management origination is established. Finally, the author figures out future direction of project management innovation in China.