Matching The Prime Cost Sum Of Professional Engineering Flexibility And Initial Trust Based On The Incomplete Contract Theory

With the sustainable development of construction industry in our country,the scale of construction projects is increasing,the degree of uncertainty is getting higher and higher.Contract flexibility as an effective method to deal with uncertainty,more and more scholars are concerned about the study.Integrate existing literature found that there are many ways to add flexibility to a contract,among them,the price flexibility is the way that scholars have generally recognized.The research object of this paper is the prime cost sum of professional engineering,which is a kind of price flexibility.Although the prime cost sum of professional engineering solved the difficulty in bidding due to unclear standard,but also cause easily the contractor,s opportunism behavior,and the greater the scope of the prime cost sum of professional engineering,the easier to cause the contractor,s opportunism behavior,which has a negative impact on project management performance.The reason is that the greater the flexibility of the contract,the contractor will increase the probability of opportunistic behavior.Research shows,opportunism is necessary condition for the existence of trust.The higher the degree of trust,the lower the loss caused opportunism.Based on this,the content of this paper includes the following three parts:Firstly,in this paper,through the deductive method to launch that the prime cost sum of professional engineering is a kind of price flexibility,and is a way to add flexibility to a contract.The description of price flexibility is that the original contract price may increase or decrease.Alternatively,parties may meet to renegotiate the price,or the precise price may be left for later determination.The prime cost sum of professional engineering accords with the characteristics of price flexibility.And this paper discusses the flexibility degree of the prime cost sum of professional engineering from two aspects: provisional scope of the prime cost sum of professional engineering and pricing method.Finally,a flexible analysis chart of the prime cost sum of professional engineering is formed.Secondly,this paper analyzes the stage that produced initial trust,and concludes that the initial trust mainly comes from the pre-qualification stage of the bidding stage,then the prequalification index and the influence factors of initial trust is obtained through the text analysis method and the literature check and the standard of divisioning the initial trust level index is obtained through the text analysis method,and finally obtain the re-qualification index corresponding to different initial trust level.Thirdly,this paper analyzes the necessity of the matching the prime cost sum of professional engineering and initial trust.And draw conclusions from the literature review that the prime cost sum of professional engineering should be matched positively with the initial trust.Combined with chapters 4 and 5 to analysis the degree of flexibility of the prime cost sum of professional engineering and the initial trust,and finally this paper form the matching results between the prime cost sum of professional engineering and the initial trust.In conclusion,this paper studies the matching between the prime cost sum of professional engineering and the initial trust with the aim of helping to reduce opportunism caused by the prime cost sum of professional engineering.Based on related review about contract flexiblity and the initial trust,this paper put forward matching scheme the prime cost sum of professional engineering and the initial trust,which will provide a reference for the setting of the prime cost sum of professional engineering and the selection of the contractor.