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Study on Institution Design of Agent Construction Institution of Government Investment Project

Author: LanDingZuo
Tutor: LiShiRong
School: Chongqing University
Course: Management Science and Engineering
Keywords: Agent Construction Institution Institution Design Risk Distribution Incentive System Industry Self-regulation System
CLC: F283
Type: PhD thesis
Year: 2008
Downloads: 1806
Quote: 16
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Abstract


With the development of the socialist market economy in China, traditional government investment project management system can not meet the law and requirement of socialist market economy development already, meanwhile, as China enters into WTO, which requires the government investment project management to gear to international practice, therefore, it is clearly put forward in the government investment system reform that the agent construction institution is implemented in not-for-profit government investment projects. Thus, the study on the agent construction institution is necessary.This thesis discusses the demand variation in procurement modes, based on the comparative study on the foreign and domestic owner’s (government) project procurement modes. Moreover, a comparative analysis on project management of agent construction companies, owner-principal project management companies, construction contractors, management contractors in developed countries and CM companies under CM mode is carried on. Based on the difference study of characteristics among them, it illustrates that project management of agent construction companies should be categorized into owner’s project, which proves the agent construction institution is an innovation of government investment project management system.Secondly, it analyzes the institution defects are the origin cause of the problems in current agent construction institution which should be designed. It designs the general frame of the agent construction institution and constructs its contents based on the systematology, including the system, law, operation system and organization structure and analyzes the interrelation among them.Thirdly, this thesis studies the legal contents of agent construction institution, establishes the legal system and suggests the legislative principle. Based on the facts, such as investment, finance, construction, auditing and checking, the deficiency of legal construction in government investment project management in China is presented. It holds that the Government Procurement Law is the base of the agent construction management method and gives the design contents as well as deeply analyzes the selection management method of the agent.Fourthly, this thesis studies the responsibilities, rights, risk distribution and incentive system of both parties in agent contract. It points out that government should delivery most of project management rights to the agent who can decide the projects procurement, goods procurement and services procurement, etc. From the angle of project life cycle risk analysis, based on the risk distribution principle, obtaining the risk distribution list between the government and its agent, the risks undertook respectively by government and its agent is divided scientifically and reasonably. Moreover, it analyzes the characteristics of cost incentive, time incentive and quality incentive and designs the calculation formula, determines the cost inventive coefficient range based on the analysis of Game Theory and illustrates that the cost inventive should be accumulated incentive, which is verified in real agent construction incentive system. It forms the calculation formula of time cost incentive according to the model of stacklberg decision, studies how to balance the decision between government and its agent and maximize the profits of both through optimum cost incentive coefficient and optimum time incentive coefficient.Fifthly, from the angles of supervision system, market system and industry self-regulation system, it studies the operation system of agent construction institution. The national supervision mode of agent construction project life cycle is set up; based on analysis on the mutually complementary relationship among government supervision system, market system and industry self-regulation system, which symbolizes the maturity of the market economy, it systematically constructs the contents of the market system of agent construction institution and further studies the construction of industry self-regulation system.Finally, this thesis analyzes the organization structure of agent construction institution and suggests the establishment of organizations to study the policy and implement the agent construction institution.

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