Research On Investment Control Of The Owner Under The BT Mode

With the rapid development of China’s economy, the construction of urban infrastructure is increasing, but solely relying on the revenue of government to build utility projects and urban infrastructure projects, resulting in insufficient supply of funds. The financing model of BT project has become increasingly used in our country, and has been operated successfully in large-scale infrastructure projects in many cities, easing the pressure of government funds effectively, leading the urban infrastructure construction, promoting China’s economic development. At present, China has not promulgated specific provisions for the BT model, there are some problems during the BT mode operation in our country, such as the blind investment of the government, the quality and investment control is difficult to guarantee and other issues, so it is necessary to study investment control of the BT model from the perspective of the owners.This article standing the owner point of view, studies the investment control of the BT projects from the whole process of the project. This article is divided into five parts:The first introduces the basic concepts of the BT model, describing the meaning, people and the operation, dividing four kinds of BT model according to the time of BT side participating in the BT project. The four kinds of BT model were compared by the general contracting model, the BOT financing model, and the TOT financing mode. The second introduces the rising of BT mode in foreign countries, the application in our countries, as well as the policy support for BT mode. By analyzing the problems, it needs to control the investment from the perspective of the owners. Next, this article studies the investment control of BT projects from the early phase, construction phase and the handover phase. Researching on the early phase mainly studies the goal of the four kinds of BT mode and the methods of the owners to control the investment, drawing the conclusions that the fourth BT mode is suitable for our country. Researching on the construction phase mainly studies the supervising of the owner to the BT project, through the monitoring of funds, the auditing of the process and cost control in the receiving phase. It needs to strengthen project changes management and claims management in the construction phase, anglicizing project changes and claims and their impact on the investment control of BT project, coming up with proposals and methods for the owners. Finally, researching on the handover phase mainly studies the constitution of the total price, the way to confirm the price, the factors that affect the total price of the repurchase, including the way to payment the repurchase price, repurchase periods, the investment rate of return, providing a reference to the owners how to determine these factors.Overall, the article provides the proposed, recommendations and measures for the owners, provides that the fourth BT mode is suitable for our country. The BT model will be more widely used in our country. This article expects providing theoretical support and practical guidance on the project to the owners for the investment control.