| The terms of payment for the project contract is the main point of management of the project contract, it is important for the projects aims. The paper analyses the value of funds’influence on the owner’s total investment under the different project payment terms, which is on the point of the basic problem on project contract management. Meanwhile, it gives some suggestions on reasonable selection of the payment terms of the project contract.The paper main points are as follows:(1) It researches the base of relative theory on the payment terms, and explores the main definition of the management of the project contract, the methods of the controlling the contracts, the examples of the project contract, the payment on the project contract. All these are to establish the theory bases for the payment terms of the projects.(2) It balances the current models of project valuation and analyzes risk allocation, advantages and disadvantages and the applied scope on the total value, the unit price, cost compensation and the project costs, according to the sample text of project contract. It talks about the four project valuation’s influences on the cost, quality and time, and synthetically analyzes the factors on price adjustment of the project contract. It gives the most beneficial the method of valuation on the project contract to the owner. It talks about the current problems and the solving countermeasure to the method of valuation on the project contract on the cost, according to the point of payment from owners. Meanwhile it gives the alternative suggestions valuation method, which is good to owner.(3) It discusses the content objection on project payment in our current "the construction contract (sample text)"on the point of the owner’s investment controlling, which are uncertain payment connotation, the problems in settling process, conflict between completing settlement and delivery. It gives some amending suggestion between our current "the construction contract (sample text)" and disfigurement on practical operation.(4) It gives a comprehensive analysis of the three projects of payment, based on the introduction of cost control and under the conditions of the time value of money. Meanwhile it establishes mathematical models based on the conditions of the project funds to pay model. Then it puts forward some suggestion which is suitable for owner, through adopting the actual payment of the project.(5) It studies the price risk---the main influencing factor on price adjustment, project alteration and the influence on project price adjustment. It gives some suggestion on some problems of the price terms of the contract according to the current "the construction contract (sample text)", and suggests coming up with the relative terms about the price adjustment in the project.(6) According to the examples, it analyses the influence on cost control from the owner under the value of funds terms with the different project payment terms, demonstrates the correctness on the theory research of project payment based on value of funds terms. |
