Research On The Factors Affecting The Economic Of Construction Contract Based On The DBB And EPC Mode

The investment in China’s infrastructure construction is growing wider,construction market at home and abroad continues to penetrate, further intensifiedcompetition. Strengthening and improving the management of construction contracts isin order to reduce unnecessary losses and enable enterprises to obtain maximumeconomic benefits. It has become imminent. In this research, the ultimate goal is tomake enterprises obtain maximum economic benefit and control all aspects of thecontract in advance. Summarizing the economic issues that the contractor who select thedifferent modes should be noted during the performance of the contract, so that it canreduce economic loss, and increase economic efficiency.Focusing on enterprises whether can maximize economic benefits, this paperpresents the concept of the economy of the construction contract and indicates thepurpose and significance to study the economy of the construction contract. This paperargues that the economy of the construction contract refers to during the period from thesigning of the construction contract to the completion of the project acceptance, it canspend the minimum cost of manpower, material and financial resources and obtain themaximum economic and social benefits in order to complete the target of the contractcost, schedule, quality, safety.For further study of the economy of the construction contract, the paper researchesand analyzes the most common traditional project management model (The DBB mode)and the EPC model which is very popular in the international. Based on these twomodes to study what is the factors affecting the economy of construction contract. By reading a lot of literature and research, to identify the influencing factors of theeconomy of the construction contract in two modes. These factors are summarized andsorted out the five main factors, they are human factors, management factors, technicalfactors, contract factors and objective factors. In these factors, the two modes exist thecommonality factors and the characteristics factors, commonality factor has21, andrespectively there are four characteristic factors.According to the influencing factors in different modes, to establish the factorsystem. Through questionnaires to obtain the degree of influence of each factor. By theprincipal component analysis method to analyze and process the questionnaire data. InDBB mode obtains four key factors, they are the contract manager professional qualityand management capabilities, the contract signed early strategy, the degree of ownersinvolvement and the level of coordination and management to contract interface, theability of reasonable analyzing and using contracts. In EPC mode obtains four keyfactors, they are the contract manager professional quality and management capabilities,the contract signing early strategy, the contractor’s comprehensive ability andmanagement awareness, and the contractor’s capabilities to control risk. Moreover, thekey factors of the economy of construction contract about these two modes werecompared.At the end of the paper, against the above-identified key factors affecting theeconomy of construction contract in each mode, proposed strategies andrecommendations for improving these key factors, in order to provide theoreticalsupport and guidance for improving future the management level of constructioncontract, with minimum capital investment, minimum risk and loss, to maximize thecorporate economic interests.