Research On Risk Control And Decision Based On Fixed-price Contracts

With the construction market continues to expand,more and more competitors who have strong comprehensive strength make the current domestic and international construction contracting market competition is becoming increasingly fierce over past years.Under such circumstances,contractors who do not occupy the leading position of the contracting process often have to passively accept the fixed-price contracts which are naturally beneficial to the employer in risk allocation in order to get more construction projects.As fixed-price contracts are generally not subject to project price adjustments,and the contractors in the bidding competition have often taken a "low profit" to get the project.Once the project risks occur,it is often hard for contractors to bear.And due to the contract restrictions,claims cannot be obtained,the contractors' profits suffered a great loss,so the occurrence of claims disputes with employer is difficult to avoid.Therefore,by controlling the contractors risk properly in contract claims,and taking use of appropriate contract decisions,the occurrence of claims disputes could be avoided,and the interests of contractors could be better protected.First of all,this thesis analyzes the current situation of the use of fixed-price contracts and the risk factors in the fixed-price contract,it also summarizes the problems and difficulties on fixed price contract claim.The conclusion is that the fixed price contract is widely applied in projects,but due to great amount of potential claims risk factors and difficulty in claim process,the contractor's interests are damaged frequently.Then this thesis proposes a way to solve this dilemma: when signing a fixed-price contract,contractors can use the model to calculate the potential risk factors in the contra ct,identify what is the main risk,then try to avoid the occurrence of contract claims disputes through making a reasonable "risk range".After that,this thesis establishes a Complex conditional-Analytical hierarchy process model,which can quantify the impact weight of the potential risk in construction contract,to help the contractors to identify the risk control target and their priority,and instructs the contractors to make a contractual decision.Meanwhile,this thesis described the application of Complex conditional Analytical hierarchy process model in engineering practice.Finally,this thesis puts forward some suggestions for the contractors to control the contract risk when signing-off a fixed-price contract.