Research on the Investment Control of Agent Construction Project under Total Lump Sum Contract Model Based on Risk Allocation

The implementation of agent system in government investment projects is an institutional innovation for the traditional self-built model. The responsibility of investment control is transferred to the Agent by the means of market mechanism and requires the agent to achieve hard restraint of project´s investment control according to agent construction contract, which solves problem of three excesses. Conformation on total lump sum of agent construction contract and means of adjustment become the key issues affecting the effectiveness of investment control. It is a crucial issue to affect the effective of project cost control that government principal and agent confirm the total lump sum and its adjustment means reasonably. At present, the design estimate was taken as the basis of confirmating total lump sum; this mode had some deficiencies and resulted in project investment exceeding the budget. In view of the deficiencies above-mentioned, the paper points out government principal and agent should take the risks of investment diversification and the responsibilities of investment control respectively based on the reasonable risk allocation. And then, the paper puts forward to the confirmation of project total cost lump sum should comprise all risk factors of influencing investment changes and it can´t be broken once confirmed. and the total investment lump sum cannot be adjusted until the risks taken by principal happened. At last, the contract terms design of risk allocation under the condition of lump sum contract and adjustment methods of the contract price due to some risks taken by principal happened are involved in this paper. The research results have some theoretical and practical significance for the investment control of agent construction projects.