Research On The Loss And Sharing Of Construction Projects Caused By COVID-19

The COVID-19 is different from the force majeure events of the past.It spreads throughout the country and the world,lasts for a long time,and is controlled repeatedly.So far,the human and economic losses caused by COVID-19 are incalculable.In the field of engineering construction,it is not destructive to the engineering entity,but it will cause the price fluctuation of production elements and additional expenses for epidemic prevention.For disease prevention and control,directly or indirectly caused by delays,the construction costs and measures of increase is inevitable,the party has to bear because the project owner deferred income pressure of money and rise in the cost of the project cost,construction enterprises are facing machine idle,personnel slowdown,management fees,epidemic prevention measures fee or penalty due to breach of contract claims etc.So far,both national and local governments have issued relevant guidance,but there are few feedbacks on the actual situation of policy implementation.Moreover,according to the results of the questionnaire,only a small part of the construction project contract parties have reasonably distributed the losses caused by the epidemic.Loss sharing schemes for most projects have not yet been agreed upon;Even some construction enterprises did not launch any intention of claiming compensation for this cost.Firstly,this paper summarizes the domestic and foreign research and development of the risk sharing mode of force majeure and construction project risk sharing.Based on the incomplete contract theory "risk re-sharing" theory,this paper also makes a quantitative analysis of the loss of engineering project by using the benchmark productivity and the method of real quantity valuation.By means of the rule of minimum cost and the theory of risk preference,this paper analyzes the risk attitude of owners and construction enterprises and the factors affecting their sharing.And from the cost nature,risk manageability and loss,cost input and loss minimum optimization of several aspects to share the way and allocation methods are discussed and analyzed.Finally,the theoretical viewpoint of how to share the loss caused by the COVID-19 reasonably is put forward,and the case is verified,in order to put forward some suggestions for the owners and construction enterprises to share the decision in practical practice.