Analysis of the Type of Contract Price in Construction Projects

In the construction projects, the contract, which is the most important behavior norm, determines the rights and responsibilities of client and contractor. All engineering activities aim at implementing and carrying out the articles of the contract. However, as the key component of the contract, the type of contract price determines the distribution mode of most of the engineering risk between client and contractor. In this paper, the most popular types of contract price used in the international construction projects are introduced. The advantages and disadvantages of each type and the distribution mode of the engineering risk between client and contractor are analyzed. At the end, some advice are given to the clients that they should choose the proper type of contract price and have innovation according to the characteristics of certain project and the situation of themselves.     

Application of the Pattern of Construction Management Contract in Large-scale Project in Shanghai

This article states systematically the fundamental conception of the mode of construction management general contract, the contract structure and the organization structure through the analysis of the construction characteristics of Shanghai large-scale projects, considering the situation of China and the characteristics of this line. It also summarizes the characteristics of the mode of construction management general contract through the example of the Pudong International Airport Construction. The mode of construction management general contract not only meets the needs of construction technique in bettering the design of construction project building, but also releases the pressure in middle and later management of construction project building and overcomes the deficiency of the long-term building period, hard-to-control investigation brought by the problem of design, purchase, construction divided from and restricted by each other existed in the traditional contract mode. It also helps the contractor to provide socialized, specialized, commoditized service for the contractor. Helps to overall arrangement, economized investment, management level improve ment can be given. So it has the superiority in super large-scale projects construction compared with the traditional construction management.     

Study on the Effect of Construction Contract

In dealing with the construction contract, to establish a contract is a result of judgment of facts, to be valid is a result of judgment of law and to come into force includes both above two. There is some close relation between subcontracting construction partly and general contracting, contract subcontracting, joint contract, but is different from subcontracting construction wholly in nature. The reasons, causing construction contract to be null and void, are various. In dealing with invalid ones, the clients should be claimed to undertake some responsibilities according to different conditions. These responsibilities involve relevant administrative responsibility in addition to civil responsibility such as reimbursement, compensation at a discount, restitution of damages and taking over the property.     

Preliminary Study of Relational Contract in Construction

The interest of the parties in construction industry is detached under the traditional contracting model.Non-cooperation,malignant competition and suits bring on high exchange cost,wasting of resources and higher risks.As a new contracting model,relational contract aggregates all parties' interest objective and circulates under a flexible agreement frame.It includes Partnering,Alliance,Long-term Contract and Joint-Venturing with their own characters and merits.This paper analyzed the obstacles of applying relational contract in practice in China and puts forward the corresponding countermeasures.     

Supply Chain Coordination for Perishable Product with Dynamic Pricing Policy

Perishable products need to be sold up before a fix time which is usually called product's lifetime.As the salvage of perished products is almost zero,and the demand is uncertainty,retailers usually set the product's price dynamically to influence the demand.When retailer's dynamic pricing policy is considered,we wonder which contracts can realize the supply chain coordination.Three typical contracts-return contract,price discount contract and revenue sharing contract are analyzed.Only revenue sharing contract among the three can realize supply chain coordination under dynamic pricing policy.The extension of price discount policy quantity-price discount policy,can also realize supply chain coordination under dynamic pricing policy.     

On the Formation of Civil Engineering Contract

It is the major way to form a civil engineering contract by means of bidding and tendering passing through the following steps as: tendering, bidding, bid opening, evaluation, acceptance and contract signing. The legal nature of the bid is an invitation to offer. The bid has certain legal binding which is different from the ordinary invitation to offer. The legal nature of the tendering is an order, which is sent to the inviter by the bidder. The letter of acceptance takes effect when it is issued and meanwhile the civil engineering contract is formed.     

Economic Sense of Mortgage and Guarantee in Credit Contract

There exists the information asymmetry between banks and enterprises that need loan, which can cause the problem of adverse selection. With the symmetry information, banks and enterprises can manage to reach best contracts. However, with the information asymmetry, when banks select the price of loan according to the average risk level of borrowers, the problem of adverse selection appears. Mortgage and guarantee are all very helpful to deal with adverse selection in some sides. For example, guarantee can send a signal to banks that enterprises could be low risky, and mortgage can make highly risky enterprises give up borrowing since it will bear more responsibility for its fail. A form of contract that connects the price of loan with the value of mortgage can help to recognize the style of different borrowers.     

Contracts of risk sharing of the enterprise, the employee and the dealer

The output of the enterprise changes with the change of natural states, therefore it brings relatively great risk to enterprise. The enterprise hopes to reduce the same kind of risk through more contracts than one kind of contract of risk sharing. This paper presents a new method to disperse the same kind of risk in two kinds of ways. Basing on principal-agent theory, through the optimum contract of risk sharing, the Pareto-optimum solving is solved-the optimum contract of risk sharing. The employee shares some risks through the optimum contract of risk sharing between the enterprise and the employee-when the output is high, the employee's income increases; when the output is low, the income decreases. In order to reduce the risk of the enterprise further, the dealer also shares the risk. To maximize the utility of the enterprise, the Pareto optimum solving is given-another optimum contract of risk. The dealer offers following contract of risk sharing to the enterprise-when the output is high, the dealer receives the repayment; when the output is low, the enterprise is compensated. The enterprise, the employee and the dealer share the risk together, thus the risk of the enterprise is reduced to relatively great degree.     

New Engineering Contract and Traditional Engineering Contracts

This paper analyzes the key principles on which the international traditional contracts and new engineering contract have been drafted as well as the contractual relations among the parties involved in the execution of the project. This paper concluded that the new engineering contract prepared by the Institute of Civil Engineers has shown its unique features in the principles and new management techniques and is able to stimulate good project management.     

Housing Project Hedonic Price Model Based on Principal Components Analysis

Real estate hedonic price model is applied to determine the average sale unit price of newly built housing projeer. In order to solve the problems of the lack of sample and the high correlation of some of the housing characteristic factors with each other in this application, a housing project hedonic pricing model based on principal components analysis of housing characteristic factors has been established. Through a case, the author has analyzed the economical significance of the implicit prices. With the model, the average sale unit price of a newly built housing project can be determined by rule and line.     

Study on Application of ''Design and Build'' Contract Mode

The 'Design and Build' contract mode is a new contract and managerial approach, to which more and more attention has been paid. Now it becomes the contracting tendency in the international construction market. In this paper, the basic theories and method of the 'Design and Build' mode are widely and systematically studied. It specifies the intention of the 'Design and Build'contract mode, existing problems and corresponding countermeasures as well as its developing direction.     

Comparatively Research of Methods of Electricity Pricing at Transitional Period in China

With the reform toward power market processing, how to decide electricity price becomes a key problem which one power plant have to face. So in this paper, the authors show two ways to the problem, a pricing model by account and a pricing model by economics, then they analyze the cost structure and counting principle of three-electricity price, which is determined by the methods of repayment of capital with interest (RCI pricing), of the operation period (OP pricing) and of marginal cost (MC pricing). Then similarities and differences among these three pricing methods existing in the transitional period are examined by a case in china. The indicate that it is important and inevitable to reform RCI pricing, to popularize OP pricing and to transfer to MC pricing.     

Web-based Contract Management System

Problems existing in traditional contract management mode are analyzed on the conditions of large-scale enterprise and regional decentralization, such as unorganized and dispersive information management, slowness or retardation of data transformation, difficulties in tracking contract information and evaluating client credit. A contract management solution based on web technology is proposed, which realizes cooperation across distributed regions, thus enables efficient and standard contract management.     

Incentive Mechanism for Team Cooperation Based on Implicit Side Contract

Aiming at the free-riding problem in team incentive, this paper designs a dynamic incentive mechanism based on implicit side contract with dynamic game theory by introducing the reasonable assumption that there is horizontal monitor in team production. The theoretic analysis indicates that the dynamic incentive mechanism, in which a strict group incentive compatibility contract is taken at the first stage and an individual incentive compatibility contract is taken at the second stage, can implement team cooperation uniquely in the general condition of risk aversion and stochastic production by only two stage repeated game.     

Electricity Pricing Regulation in Demand Side Management

Time of use(Tou) price is one of the most efficient measure for modern demand side management(DSM).But a scientifically pricing is based on understanding the function of pricing mechanism and comprehensive analysis to social benefit.The authors develop a pricing model by game theory based on analysis of consumer's response to the time of-use price and analyze the pricing regulation of government for maximum social benefit.A conclusion is drawn,which suggests that government should let the electricity corporation to pricing, but just give a regulation on the average price level.     

A Dynamic Grey Fuzzy Evaluation Method for Financing Risk in Freeway Project

There are many risks that influence freeway project financing and the influence of these risks differ by project stage. However, it is impossible to analyze the total risk of project financing objectively and accurately merely using the fuzzy or grey evaluation methods. These methods cannot reflect the dynamic characteristics of financing risks during freeway project construction. A dynamically grey fuzzy comprehensive evaluation method was established and used to evaluate the financing risks of a freeway project. The results indicate that this method can not only make full use of the rich experience of the experts, but also reduce the influence of subjective factors. In addition, this method can reflect the dynamic characteristics of the financing risks during freeway project construction. Investors therefore can pertinently prevent and control financing risks based on the results of the evaluation of financing risks in every stage of the project. A demonstration shows that the method is suitable for comprehensive evaluation of financing risks of infrastructure projects such as freeways.     

Fuzzy Analysis Method for Evaluating the Qualityof Project General Supervision Engineer

Since the implementation of the new construction system in 1988 in China, this system has gone through three phases: trial phase(1988-1993),development phase(1993-1995),and comprehensive application phase from 1996.Construction supervision as a new management system has profound effects to the whole process of a construction project, in particular, to the three conventional objectives, that is quality, cost and construction time. The new management system has to a large extent brought the traditional problems of extended construction time, uncontrollable cost and unsecured quality to a normal practice. Construction supervision is a management activity with request of high intelligence. The performance of this activity is closely related to the quality of project general supervision engineer. This paper identifies the basic elements that a proper project general supervision must have. By applying the fuzzy analysis principle, this paper presents a quantitative model for evaluating the quality of project general supervision engineer.It provides an applicable approach for project clients when general supervision engineers are to be chosen.     

Game Analysis of Banking Supervision

Banking has a high gearing lever and its operators are keen to the risk projects with the lure of high income. The supervision sector should regulate the banks and force them to reduce risks to ensue the healthy circulation of county's economy. The supervisor should report the disclosed risks to the supervision sector so that they can alert the risks in advance and control them ,but the sector must take action to prevent the collusion between the operators and supervisors.     

Indirect Regulation Pricing Methods of Public Utility

The author analyses the advantages and disadvantages of common indirect regulation pricing methods of public utility goods. It is pointed out that it results in high trade-cost and A-J effect binging in an excess of investment when capital yield method be used. It is not reasonable enough in setting PRI-X of PRI-X pricing method. An integrated indirect regulation pricing method is put forward which is to form a two-tier incentive mechanics both in expanding producing ability and improving efficiency. In initial stages of new public project, capital yield method should be used in order to activate investment motive. Upper-limit pricing method should be used in anaphase in order to improve the producing efficiency.     

Countermeasure in Consultation for Project Prospecting and Designing after the Access of China to WTO

The consultation in project prospecting and designing plays a very important role in the project construction and it is facing a great challenge after the access of China to WTO. In this paper, the countermeasure in consultation of project prospecting and designing is put forward as follows: change the idea; cultivate and develop a perfect market system; to build a market operating system in keeping with the requirement of international practice and market; to reform and perfect the trade management system; to enhance the level of the project prospecting and designing unit; to change the government's function; to strengthen the quality control to ensure the quality of the project; to form a perfect law and regulation system; to encourage and strengthen the technology reform to set a fine base for the sustainable development and to adjust and work out the encouraging policy to help the trade development.