Research on Subcontracting Boundary of Engineering Project

In the view of transaction cost economics, the subcontracting boundary of engineering project is studied. By dividing the total cost of engineering project into three parts, the model of subcontracting boundary is set up to analyze the theoretical basis of subcontracting development. In order to discuss how to solve actual problem with this idea, common subcontracting, specialty project subcontracting and general contracting project are studied separately. The results show that the economic origin of subcontracting is the reduction of the organization cost and the cost of general contractor for its advantage of specialty and scale economy. Moreover, it can promote the core ability of the general contracting management, and along with the development of technology, the boundary of subcontracting will change beneficially.