Study On Construction Process Cost Game Based On Principal Agent Model

The construction industry occupies an important position in the industrial structure of our country.The deployment of China's "The Belt and Road" strategy to promote further,coupled with the national increase in infrastructure construction support promote the rapid development of the construction field.In recent years,China's construction industry has maintained a high speed and stable development,and the level of technology has been continuously improved.However,there are still some problems that need to be solved urgently,such as high energy consumption and low efficiency,and extensive construction mode,resulting in serious waste of resources.As mentioned above,these disadvantages will seriously constraining the lean management of construction cost and obstructing the rapid development of enterprises.This paper adopts literature research method,model deduction method and empirical research method.In this paper,a cost control method based on unit time principal agent model is proposed in the context of construction projects.This paper attempts to solve the dynamic game problem of income distribution between managers and workers around cost reduction,and makes an empirical analysis based on a construction project in Wuhan.The main results of this paper are as follows:(1)The income of unit time of the workers is related to the unit product profit of the workers and the output per unit time of the workers.Through model analysis,it is found that workers' unit time income is the three function of their effort degree.When the parameter is within a certain range,the unit time benefit will peak.In this case,the worker's unit time income increases first and then decreases with the improvement of the worker's effort.(2)The unit time income of the project manager is related to the unit product profit of the project manager and the output per unit time of the workers.When the worker's effort is optimal,the manager's income will increase with the increase of the incentive ratio and reach to the peak.(3)There is a nonlinear positive correlation between the workers' effort and the incentive ratio,and the correlation is positive.Even if,the greater the incentive ratio,the more effort the workers will make to control the cost,aiming to increase their own income.By adjusting the incentive ratio,the project manager change the worker's effort to gain the maximum benefit while the workers' profit can also reach the maximum.Therefore,in this paper,the existing cost control theory application system is perfected,and the cost reduction sharing rate of the project between managers and workers aiming to achieve the maximum profit at the same time is also given,which provides reference for the project manager to control the cost control in the construction stage.