The Research On Reasonable Risk-sharing Of Contract Risk With Project Bidding

In the context of rapid development of economic construction, construction projectpresents an new trend which increase rapidly in quantity, and increase largely withconstruction scale, continue to extend the construction period, increase the amount ofinvestment, resulting the factors in the process of implementing various is not easy to controlare rapid increase. How to through the reasonable risk-sharing in construction engineeringproject to achieve the goals which is the balance of interests between the owner and thecontractor, and achieve win-win situation. It is the prerequisite to ensure the constructionproject healthy, stable and rapid development. The construction project reasonablerisk-sharing has become a key issue which relation the project can be completed smoothly.The purpose of this paper is to study the reasonable risk-sharing of construction engineeringproject, and establish risk-sharing model, and put forward reasonable suggestions ofrisk-sharing.First of all, it’s based on the theory of construction project risk-sharing in this paper,determining the main body of risk-sharing and the attitude towards risk between contract bothsides. Which determine the principle of risk-sharing and risk-sharing framework. Analysisingthree different types of contract risk of the unit price contract, total price contracts and costplus fee contract. Analyzing07<standard tender documents of construction> with generalconditions of contract and13<code of valuation with bill quantity of construction works>with the risk of construction price to determine factors of project risk.Secondly, analysising and researching of the three risk-sharing model, through therisk-sharing model based on risk attitude and risk-allocation with game model can simply,quickly to achieve the sharing of risk, and the risk-sharing model based on lagrange caneffective allocation of the risk between two parties of contract and improve the efficiency ofrisk management. It effectively solve the risk problem which requires the parties share.In the end, through engineering example proves that the risk-sharing model based onlagrange is feasible and effective. And put forward the suggestion of reasonable risk-sharing：1）Select the appropriate contract type,2）Complete the contract perfect,3）Establish areasonable risk-sharing mechanism to mobilize the enthusiasm of all parties,4）Clear the bargaining position with both sides,5）Determining reasonable risk allocation proportion。This paper set up the risk sharing model based on lagrange, it better solve the problemwhich reasonable risk-allocation proportion between the parties to the contract, and providesthe reference and basis for the construction project risk allocation management.