The Impact Of Renegotiation On Contract Performance In PPP Project

Recently,Chinese government makes great efforts to promote the development of PPP projects,a lot of PPP projects,with total investment of more than 2 trillion yuan,will be practiced in China.Although,renegotiation is always an important problem plagued PPP projects,existing study didn't explain the mechanism of impact of renegotiation on contract performance,and took this process as balck box.This paper seeks to address research hypothesis and conceptual model of the relationship among renegotiation,perceived justice,contract performance in PPP project by combining research findings of renegotiation and contract performance in PPP project and introducing perceived justice as intervening variable based on referenece point theory in incomplete contract theory.We collected questionnaires with 136 valid data in Tianjin,Beijing and Jiangsu province.Based on structural equation model,in this paper,SPSS Statistics 19.0 and AMOS 21.0 were used to test the reliability and validity.The results show that:(1)The dimension of risk allocation change of renegotiation has a direct positive effect on contract performance,and it also has an indirect effect on contract performance intervened by procedural justice and distributive justice;(2)The dimension of risk allocation of renegotiation has a direct positive effect on procedural justice and distributive justice,and the dimension of project scale change of renegotiation has a direct positive effect on procedural justice and distributive justice;(3)The dimension of project scale change of renegotiation has a direct positive effect on contract performance,and it also has an indirect effect on contract performance intervened by procedural justice and distributive justice.This paper introduced perceived justice as the intervening variable of renegotiation and contract performance in PPP project;and discussed the impact path of renegotiation on contract performance;and then revealed the mechanism of renegotiation impact on contract performance and black box of this process.In addition,this paper used empirical analysis to study the relationship among renegotiation,different dimensions of perceived justice,and contract performance in PPP project,which can promote the contract performance of private sector in PPP project so that make sure the PPP project performance and provide better service for public.