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Incentive Contract Designing of Preventing Conspiracy in Construction Project

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Abstract:

With rapid growth of national economy, infrastructure construction maintains vigorous development, but there are some serious problems in this field such as the conspiracy between construction unit and supervision unit. This paper introduces some background of construction project management system, analyses relation and benefit of project’s tripartite main body, and establishes game model between government and supervision unit. Finally, the paper designs governmental incentive contract, and calculates optimal incentive reward which maximize governmental expected utility, which could encourage supervision unit to supervise construction unit by adjusting reward, and decrease probability of conspiracy between supervision unit and construction unit.

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Periodical:

Applied Mechanics and Materials (Volumes 50-51)

Pages:

414-417

DOI:

https://doi.org/10.4028/www.scientific.net/AMM.50-51.414

Citation:

Cite this paper

Online since:

February 2011

Authors:

Li Chao Feng, Zhi You Liu, Xing Huo Wan, Jing Guo Qu, Ya Mian Peng

Keywords:

Conspiracy, Constriction Project, Game Theory, Incentive Contract

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© 2011 Trans Tech Publications Ltd. All Rights Reserved

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