Research On Disputes Of Payment Based On Incomplete Contract :A Perspective Of Contract Status Compensation

Final account at completion is the finishing section of the life cycle of construction project, it is occurred that an ideal final account play an important part in investment control. At present, many of the researches about settlement are inclined to the auditing and the payment proces of settlement. However, the overloading of transaction cost in settlement proces comparably ignored, and the direct performance of transaction costs is settlement dispute. In order to solve settlement disputes, practitioner are trying to made a resolution from the complete contract terms to achieve the performance efficiency between contracting parties, while the new clasic economics has proved that the incomplete contract is ineviTable.Obviously, the excesive pursuit of complete contract of construction is offend to the development path of economics, and the incompletenes of contract is not the sticking point for disputes settlement. Fortunately, neoclasical economics has put forward two compensation programs for it, one is the advance design mechanism, and the other is pro-compensation. Based on this. Therefore, the research will return to the clasical paradigm of economics to make a resolution from incomplete contract theory to solve settlement disputes.In general, the settlement disputes of projects caused by exogenous and endogenous risk(contractual incompletenes), however, the existing explanation routes from literatures on this isue is insufficient. Thus, this study build a contract status model to explain the inescapable relations between project risk and settlement disputes. In the proces of building theoretical model, found that the project risk affects the producing of settlement disputes by changing contract status, while, the settlement disputes produced in other ways. From the above analysis, the incompletenes of contract can be compensated for by a combination of pre-post. Thus, the settlement disputes caused by project risks can be resolved by contract status compensation in contact performance stage, pro- compensation. Meanwhile, the resolution of settlement disputes is not limited to this, for contracting parties, the ambiguity contract status compensation paths also lead to controversy, settlement disputes occurred again. At this point, the way to avoid disputes is manifested by contract optimization, the pre-design mechanisms. In summary, the study of settlement disputes based on incomplete contract theory is as the follows:(1) Analysis of risk factors leading to the imbalance of the contract statusRisk factor analysis leading to imbalance of contract is the prerequisite of status compensation, and it includes three specific content. On the one hand is to identify risk factors, which determine the real risks existing in the project contract. On the one hand is to To determine the liability of risk, which clears the subject of all kinds of risks, determines the risk of status compensation, provide the basis for risk clasification. The third aspect is to divide risk factors, Including clasifying risk factors and determining the appropriate way of risk compensation(2) Research on the compensation of contract conditionThe compensation of contract condition is settlement mechanism of settlement of dispute after the event. There are two studying directions about compensation of contract condition, one is about the changing way, the other is about the adjusting of price. These two research methods are used according to different risk elements, the research content including that determinethe scope of the use, determine compensation mode,and provisions of the applicable scope.(3) Confirm and precontrol the incomplete key points of leading to settle disputesThe research of incomplete key points about controversy is according to the two kinds of compensation mode. This article mainly discuses the mechanism of settlement of disputes in the compensation proces, identify and preview incomplete key points. Mechanism of designing before be signed can optimize the terms of the contract. It can preview the settlement of disputes caused by the compensation proces.This study refers to the status compensation theory, and return to the clasical economics research paradigm. The article systematically discuses the settlement under incomplete contract dispute with the project risk, the inevitable link between status compensation, and reveals the two kinds of settlement dispute induced factors. At the same time, this research expounds the status compensation mode and optimize the terms of the contract. It can provide advice for parties to the contract in solving the disputes. In addition, this study established the model of the project contract status by reference to GHM model. This model describes evolution proces of the contract status, authentic and continue the theoretical study.