Study On The Decision Of Construction Project Cost Claim Based On Game Theory

Claim is a normal economic phenomenon in the construction project, it is a valid means to contracting parties to maintain their legal rights and interests. However, claim management is still a weak link in engineering project management, because it starts late in our country. Claim decision-making, as a key problem in claim management, directly related to the success of a claim, scientific decision-making can make the claim for compensation under the condition of maximizing the interests of both sides, and to agree the result of the claim, without phase rise to litigation.Therefore, the article uses game theory to study the owner and contractor’s series decision-making in cost claim process, and the construction project cost claim can be divided into three stages:the stage before claim decision-making, strategic decision-making stage, claim negotiation tactical decision stage. In the stage before claim decision-making, the article first introduces the concept of claim opportunity through the contract state analyzing, summarizes and analysis the necessary preparations before a claim decision-making by the contractor, including claim opportunity identification, analysis of claims, claims on the basis of collecting; In strategic decision-making stage, the article establishes a complete information dynamic game model based on game theory, with the application of reverse induction method, to study the owner and the contractor on the decision making of claim or not claim, negotiation or consultation, accept negotiation or choose strategic decision-making problem such as litigation, and then obtain the equilibrium path under the condition of different benefit of both sides; Secondly, in the claim negotiation tactical decision stage, the article establishes the owner and the contractor claim bargaining decisions bilateral game model, using the theory of Bayes and Zeuthen negotiating tactic, studies the owner and contractor’s consultation process in further choosing specific bargaining negotiation cases, and then obtain the bilateral of the equilibrium solution.Finally, through specific case application, it verifies that the bilateral bargaining game equilibrium results conform to pareto optimality, we can conclude that the game model of this article can provide certain reference for practical engineering claim.