Research On Dynamic Governance Mechanism Of EPC Project Based On Trust And Contract Governance

In recent years,under the strong support of national policies,the scale of the general contract of the project has been expanding.The EPC mode has become the main construction mode of the survey and design industry.However,the imperfect governance mechanism,uneven risk sharing and conflicts of interest lead to low project quality,construction delays and potential compensation for breach of contract frequently.EPC projects are faced with serious problems of low management performance.The reason is the opportunistic behavior of contractors caused by information asymmetry,which destroys the cooperative relationship between the contracting parties and seriously affects the management performance of EPC projects.Practice shows that contract governance and relationship governance are important to improve the performance of EPC project management and prevent the opportunistic behavior of general contractors.Therefore,this study will focus on the defense of opportunistic behaviors of general contractors,consider their characteristics differences in the contracting cycle of EPC projects,and apply structural equation model and system dynamics to study the governance mechanism of EPC projects from a dynamic perspective.Firstly,through literature research,the paper clarifies the variables in the theoretical model of EPC project governance mechanism and the elements contained in the variables,analyzes the path of trust and contract governance to the general contractor’s opportunism behavior and project management performance in the contract contracting stage and contract performance stage of EPC projects,and the intermediary role of contract governance and opportunism behavior,puts forward research assumptions and constructs a research model;Then determine the measurement scale of the variables,obtain data through a questionnaire survey,and use Smart PLS software to conduct hypothesis testing and analysis on the PLS-SEM model constructed in this study.Finally,based on research assumptions and structural equation model analysis results,system dynamics simulation was carried out to reveal the dynamic changes of trust and contract governance in the EPC project contract contracting cycle,as well as the dynamic governance effect of the general contractor’s opportunism behavior and project management performance under the role of trust and contract governance,laying the foundation for the EPC project to develop an effective governance mechanism by stages under the opportunism behavior.The results show that:(1)In the EPC project contract contracting stage,contract governance has a significant inhibitory effect on the general contractor’s opportunism behavior and can promote the improvement of project management performance,while initial trust has no significant impact on contract governance,the general contractor’s opportunism behavior,and project management performance.(2)In the contract performance stage,continuous trust and contract governance have a significant impact on the opportunism behavior of the general contractor and project management performance,and contract governance and opportunism behavior of the general contractor have a significant mediating role and chain mediating role between continuous trust and project management performance.(3)EPC project governance presents a dynamic change from contract governance as the dominant governance tool during the contract signing stage to trust as the dominant governance tool during the contract performance stage.Considering the influence of time dimension,this study explored the dynamic mechanism of trust and contract governance on project management performance in the contracting cycle of EPC projects,as well as the role of general contractor’s opportunistic behavior in the process,providing a new perspective and new ideas for the study of EPC project governance.Through the system dynamics simulation,the dynamic changes of trust and contract governance effect during the contracting cycle of EPC project contracts are deeply analyzed,which deepens the understanding of EPC project managers on the changing rules of project governance effect,and enables owners to adopt effective governance mechanism in stages to cope with the opportunistic behaviors of general contractors.Ensure the smooth running of projects and continuous improvement of project management performance.