Analysis on Agent Construction Management Mode for Government-Invested Projects Based on Principal-Agent Theory

The document "Decision on the reform of the investment system of State Council "(State Council Document [2004]No.20) issued by State Council is a signal that reform and exploration on the management mode of government-invested projects and investment system is initiated. Consequently, in the practice behaved by local governments to fulfill and execute the intention of the State Council, there emerges two new kind of management mode mainly, which are called as government-invested projects centralized management mode and government-invested projects company agency mode This paper will discuss agent construction market cultivation from the angle of system structure based on Principal-Agent Theory.