Research On Risk Management Of Government Investment Project Under Agent-Construction System Mode

Although China has experienced the rapid growth of economy since the reform and opening up, public infrastructure is still the focus work of the government over a period of time in the future.It is known that a large number of public infrastructure projects are under construction or to be built.Although the number of these public construction projects is large, but not distributed evenly. This heterogeneity is reflected not only in region, but also reflects in the time. Therefore, it is necessary for the government to explore in management models of public construction projects which government invests in, in order to come up with a kind of economic management model. Traditional management models of government investment projects are mainly Project Legal Person, Headquarters and Capital Construction Department. However, as the reform deepening, the traditional management models no longer suited to current developments. The introduction of "Construction Agency System" adapted to the new situation in some extent,which leads to the traditional pattern of public construction project management broken up.The pattern has successfully solved many difficulties in the traditional mode of management by choosing a professional construction units agent instead of the government functions.Through research, the author found that the agent project as a special kind of construction projects, the system has the risk itself in addition to general project risks.General risks exists in the whole process of project, it can be effectively solved by using analytic hierarchy and past experience.As for the risk of agent system,it can be concluded based on "economic man" hypothesis and the principal-agent theory.In this paper, how to successfully manage agent risk of government investment project is studied by means of theoretical arguments and modeling method.Firstly, the current advantages and disadvantages of agent model are analysed and problems are summarized.Then, the problems existing in the management mode of agent are analyzed based on the theory of risk management.Finally, a new point of view is put forward based on the theory of system design and reasonable system are designed in order to further improve the ability of the government’s response to investment project agent risk.The purpose of this paper is to provide "agent" reform and innovation of new ideas as well as to expand in the application of agent model the public construction projects.This paper is an innovative attempt only to provide some references for future research, and deficiencies there is expected relevant scholars who will do further study.There are20figures,4tables and57references in total in the paper.