Study On The Agent-construction System For Government Investment Project Based On Principal-agent Theory

Since the outbreak of the international financial crisis in2008, China’s StateCouncil had promulgated a4-trillion-investment economic stimulus measure toresponse the impact of the international financial crisis on China’s economy.The4-trillion-investment contributed to launch a large number of government investmentprojects, so improving the efficiency of the government investment projects wasessential. Since2004, the Agent-construction System as a new project managementmode for government investment project effectively had solved the problem of thegovernment owning four roles (“investor”“constructor”“supervisor”“user”) andimproved the efficiency of the government investment projects. However, in recentyears for the Agent-construction System is still in its infancy, a number of problemsgradually have exposed, Such as the mode of the Agent-construction System was notuniform in different regions, and agent-construction company got less remuneration butmore responsibility. The reason is that the future development direction of theAgent-construction System is not clear and have not built an effective incentive andrestraint mechanism.The article introduces some foreign government investment project managementmodes and two traditional Chinese modes, summarizes the excellent experiences of theforeign modes and the drawbacks of our two traditional modes. On the basis lead to ainnovative Chinese government investment project mode—Agent-construction Systemand then elaborate on the basic theory of the principal-agent. Based on thePrincipal-Agent Theory, the article establishes a principal-agent model between thegovernment and the agent-construction company, and makes a comparative analysisbetween the institution agent construction mode and the enterprise agent constructionmode from the four aspects which are risk-sharing, supervision capacity of theagent-construction company and agent-construction market by using the methods oftheoretical analysis, comparative analysis. At last, the article points out the futuredevelopment direction of the Agent-construction System is the enterprise agentconstruction mode, and to guide the enterprise agent construction mode works better inpractice，the article builds the enterprise agent construction mode’s incentive andrestraint mechanism.