Study On Credit Rating Of Construction Enterprises

The credit of construction enterprises is an important part of social credit system, which is also a key factor effecting construction enterprise's core competitiveness. Due to the incomplete credit system in current construction market of China, some construction companies have severe problem of lacking credit, which not only distorts the relation between both sides, but also hinders the healthy development of construction market. It is urgent to build an optimized credit rating system for construction enterprises. In this paper, the indicators and methods of credit evaluation were studied, then a scientific and rational credit evaluation model for construction enterprises was established, which could provide some reference for the owner to choose building contractor and prevent credit risk.The credit evaluation of construction enterprises includes two aspects of core content, which are the establishment of index system and the selection of evaluation method. Firstly the principles of building credit evaluation index system were explained, including the comprehensiveness, hierarchy, applicability, as well as combining qualitative and quantitative indexes. Based on the credit rating theory for general business and combined with the specific characteristics of construction enterprise, it was proposed that the credit level should be analyzed from aspects of contract performing capacity and willingness. Meanwhile, the evaluation elements were selected to establish the credit evaluation index system for construction enterprises.Through the analysis and comparison of corporate credit rating methods, the fuzzy evaluation theory and grey relational analysis were applied to establish the credit evaluation model for construction enterprises. Firstly the weight of each index was determined with gray relational analysis, based on that the construction company's credit was apprised using fuzzy evaluation method. Grey relational analysis has no excessive requirements in sample's amount and distribution pattern, and its qualitative analysis results are consistent with that of quantitative analysis. This method is suitable to determine the primary or secondary degree of each factor. The fuzzy evaluation method has strong systematicness and can obtain clear results, which evaluates the object comprehensively and quantitatively based on qualitative analysis. This method is well adapted to the characteristics of credit evaluation index system for construction enterprises. In this paper, these two methods were used together for construction business credit evaluation, which could determine its credit rating more scientifically and objectively.Finally, a construction company was selected to verify the established model. It was indicated that this model had good maneuverability and effectiveness, which could objectively determine the credit rating of construction enterprise, and provide certain information for the owner to choose better contractor.