Research On The Incentive Mechanism Of Construction Supply Chain Based On Joint Procurement

The application of supply chain management in the construction industry is more and more widely. At the same time, the traditional management model is changed, by the development of integrated management such as collaborative technology and IT, gradually. In large projects, certain key projects are often adopts the multi-biding in a parallel construction way to shorten the construction period of the project and there is no competitive or cooperative relationship between subcontractors. For this reason, the focus of project management is coordinating the resource demand between suppliers and subcontractors. The cooperation of Project Company and key resource suppliers can bring benefits to the members of supply chain if the resource supply could changes the overall construction period. From the above, this paper builds a bi-level decision-making model based on the optimization of profits and project time in the project life cycle, and a coordination mechanism of benefit incentives between the project company and suppliers, and analysis the shared interest to establish strategic alliance.We first recount the conception of project management and supply chain management, and analysis the feasibility of introducing supply chain to construction projects. According to the features of project management, we present a coordination framework of revenue incentives afterwards.Finally, we study the optimal strategies of both parties under single project procurement by establishing STACKELBERG decision model. Introducing this model to Joint purchasing is discussed as well. In this research, we assume that by increasing the supply or resources can shorten the project construction period and enter into the project operating period in advance. The contract between Project Company and suppliers is set in the whole project life cycle. The research also shows that suppliers would improve the effort level to their greatest extent when the revenue is higher than the cost.In the study, it is assumed to increase the availability of resources speed can shorten the total duration of the project construction, and by reducing the duration of the project put into operation as soon as possible, early entry into the economic life of the period.Procurement of a single project, the project company and its suppliers, the contract period is set to the project life cycle. The study found that single-project cooperation, the project company’s incentive income, suppliers taking into account the objective of maximizing its own expected return, only if the revenue they receive compensation higher than the cost, the vendor choose to maximize the level of effort and improve the supply cycle; joint procurement model based on multi-project revenue Incentive vendors themselves expect to maximize the return on the position to consider the strategic cooperation, from the point of view of the supply chain as a whole gains, joint procurement incentive strategy will be superior to single motivational strategies in the project cooperation.