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Research of profit distributing of general contractor and sub-contractor dynamic alliances based on incentive contract

YIN Hong-lian1,2 WANG Zhuo-fu1 Chen Zhi-yi2 (1.Engineering Management Research Institute,Hohai University,Nanjing 210098,China; 2.Shandong Water Polytechnic,Rizhao 276826,China)  
It is the key of possessing stable sub-contractors and establishing a long-term cooperative partnership to design rational profit distributing mechanisms and to win-win with sub-contractors for general contractor.In the incentive contract of owner,based on principal-agency theory,profit distributing models of general contractor and sub-contractor in one-off and long-term cooperation are set up.The results show that the greater the contributions,the lower the effort costs,and the greater the distribution coefficient;Pareto balanced effort level can not be paid for in one-off cooperation,so long-term cooperation should be established between general contractor and sub-contractors.A higher distribution coefficient should be given to sub-contractors in long-term cooperation than in one-off,the more the cooperation times,the higher the distribution rate.The conclusions can provide thoughts and scientific basis for the design of the sub-contracts.
【CateGory Index】: F426.92
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