Information Asymmetry Between Owner And Contractor In Construction Project

In recent years, China’s large construction projects in full swing, However, for some reasons, the management of the effect did not reach the maximum. The paper argues that the owner and contractor have the information asymmetry. And this cause the question of the construction projects.Firstly, by asymmetric information theory for analysis, which is incorporated into the management of the owner and the contractor between establish project management model. Then introduced the two sides of information asymmetry manifestations and characteristics, revealing in the project owner and contractor information asymmetry.Secondly, the article from the risk of three objectives of the project, determine the impact of asymmetric information on the project.From both sides of the target, the principal-agent theory, opportunity cost and transaction costs theory to explain the owner and the contractor to produce the information asymmetry reason. Proposed use of the principal-agent theory, PARTERING management, Vickery bidding strategies in order to solve the information theory, At last, get the all-win goal of the project.Finally, a description of the various stages of the steel plant project, the causes and impact of the project on asymmetric information generated to analyze and propose countermeasures.