Study of the Dynamic Game in Change Pricing between Owner and Contractor

Construction change is common and inevitable in construction practice and it makes up a large proportion of the initial contract price. Thus disputes often arise between the owner and the contractor in the process of change pricing. Based on this issue, this paper develops a Dynamic Game Model to analyze this process. After solving the game tree, the paper gets the equilibration paths in different conditions and concludes the key factors in the two sides´ decision-making, such as the contractor´s success probability and cost in mediation, the contractor´s cost in arbitration and the owner´s cost in mediation. At last, several suggestions related to the change pricing game for the two sides are presented.