Research Of Engineering Change Based On Principal-Agent Model

In the context of social division of labor, it is very important for every resource's cooperation involved projects, and the cooperation between owners and contractors throughout the project is the most important part, for the success of their cooperation is directly related to the success of projects. As the complexity of the project, whether the survey and design or the construction, it is likely to lead to engineering changes. Especially the rapid growth of project costs owing to the major changes to the project has been widespread concern in society.Domestic and foreign scholars have carried out a lot of research on the principal-agent theory, and the theory has been widely used in various fields.This paper established a pridcipal-agent model of engineering change which based on the principal-agent theory and the actual situation of engineering changes, and did some analysis about the model. What is more, combined the effect of the supervision of the owners, this paper established an owners' supervision model to the paties of the engineering changes and gave some discussion and analysis to this model.In consideration of the complexity of the engineering changes'classification,this paper divided engineering into changing part and no-changing part,then as to the whole project, contractors would be faced with two effort levels and two risk-sharing rats. Because of the limited and sharing of the contractors' resources, contractors' effort levels would be different with before,what's more,the change on the effort levels was not linearity.According to the analysis of the pridcipal-agent model of engineering change,this paper found the effect factors of the effort level and the risk-sharing rat,and explained the effect factors'valuable significance.In order to ensure the performance of engineering change part,owners need to strengthen the supervision,this paper suppose that owners only pay the supervision to the changing part. Supervision was mainly embodied in inspection of the defect rate. Because of owers inspection was not always right, so there was a probability.The base of the inspection model was that when contractors paied the minimum security efforts their expected yields were more than that they don't pay. Whether take the minimum security efforts this paper gave an analysis to the three key factors.At last, based on previous conclusions, this paper gave some analyses on terms of the construction contracts which involved engineering changes.With the actual situation, this paper provided a reference for the terms of the construction contracts which involved engineering changes.