Research on agent construction management mode and principal-agent relationship

Translation from original language as provided by author

Government investment is one of important means used to do intervention economics and economic activity by countries. It is important to establish and perfect the pattern and method of construction project management invested by our government in order to adapt to the market mechanism function. Traditional model of project management invested by government once plays a important role in the era of planned economy. With the development of the found of market economy and the continual reform, traditional model has not adjust the new economical environment, and it brings a lot of problems, especially some temporary model like headquarters, fundamental construction office can not leave some useful experience but only one-of lessons, which brings serious waste of social resources. July 16,2004, the State Department publicized the decision about the reformation of investment system.In the third part, it puts forward the advice of speeding up the practice of agent construction management(ACM) in the projects invested by government. ACM is the government management innovation considering the situation of our country. It's an inevitable requirements for improving government investment system and socialist market economy. ACM has two meanings. Firstly, agent construction, it means that the construction management of a project of public works is carried out by a specialized construction management company, which accepts owner's entrust by market competition. Secondly, system means that this project management mode must be used in the public works. No unified ACM mode implementation comes on up to now. It results in ACM market having no criterion. So we should improve the development of ACM mode deeply based on current condition. Such as informational economy, political economy, modern project management, game theory are used in the paper. The paper researches ACM mode theoretically. The main research fruits are as following: (1)Based on analyzing the defects existed in the traditional administrative systems, the paper summarizes implement status of ACM in our country, does a particular analysis to implement characteristic of ACM mode and points out some key problems exsisted in ACM implement. (2)The paper analyzes the essence of ACM by the comparison between ACM and the other project management modes; puts forward the ACM mode that suits development of our country by the comparison of two different sorts of modes, points out the development orientation of agent construction manager and ACM mode. (3)The paper starts with non-symmetry information of agent construction market, and discusses commission connection of principal to ACM mode, and how to recede influence of non-symmetry information by incentive and supervision mechanism is pointed out. The paper indicates that rational prompting mechanism and system arrangement can make the action of deputy accord with client. The paper analyzes activities of government from theory of property right and seeking rent, designs incentive and supervision mechanism aimed at government, and analyzes activities of agent construction manager from informational economics. The principal-agent model is established according to principal-agent theory, and the paper analyzes influence of related variables on the sensitiveness of compensation performance, proves that it will be able to decrease asymmetric information between client and deputy, and suppress moral risk by introducing surveillant into incentive model. In this paper, the index system for achievement evaluation, which includes five parts:agent construction behaviors, jobs achievement and ect, are built based on the traits of agent construction management jobs and the particularity of ACM mode. Achievement evaluation is implemented by using multi-level by degrees grey evaluaion method. It provides a reliable decision support for selecting a suitable agent construction manager and carrying out incentive mechanism effectively. (4)The paper summarizes reform achievement of ACM mode in WuHan city, aims at the current condition of ACM mode in WuHan city and points out some key problems exsisted in ACM implement. Finally, the paper puts forward reform advices about two