Research On The Effectiveness Of Risk Sharing In The Management Of Constructi On Contracts

In Chinese rapid economic development, the construction industry as a pillar industry of the national economy, has been healthy and stably developed.With the changing of economic development,investment in the construction industry is emerging diversely,construction period is extending,he number of projects is increasing rapidly, thus increasing the risk of many unpredictable factors,and increasing the decision challenging of the capital investment 。In order to ensure stably development of the construction industry and maximize the interests of all parties involved in the project, an important issue how to comprehensively and systematic identify risk factors and reasonably share its responsibility to the appropriate body to be resolved, ultimately achieve a win-win goal. Therefore, for successful implementation of construction projects the implementation of a reasonable risk-sharing in the construction project contract management has become one of the key issues.This paper is intending to address the problems of the risk sharing contracts in construction project management,and to explore optimal risk sharing contract management strategies,study the effectiveness of risk sharing in the contract management.In this paper, in-depth discussions in the following:Firstly, studying the basic theory as a starting point in this paper.In order to study analysis the effectiveness of risk allocation in the policy contract management the risk-sharing、contract management of the construction project and risk sharing basic theory of utility construction project contract management.in the strategy,summing up risk sharing appear in the contract management, on this basis, studying the utility mechanism, in order to achieve the purpose of the program and the implementation of risk sharing strategy.Next, depending on the risk sharing scheme, the paper identify criteria of the risk sharing utility model, basis on the establishment of risk sharing utility model in two stages:in the first phase,using the Analytic Hierarchy Process initially identify risk sharing ratio,using the method of Nash negotiation model, and their willingness to seek the parties to the contract determine the optimal risk allocation strategy,and evaluate risk sharing utility model from the effectiveness of the money economy and results in the formation.Finally,with examples of emerging practice,using the two-stage risk-sharing utility model to determine their share of the risk, in order to reflect the risk sharing contracts’ effectiveness of the monetary economy and the formation results in the formation results in construction project management.