Study On Risks Controlling Toward The Lump-sum Contracting

According to the deadlock that the market share of lump-sum contracting can' t be enlarged steadily in the past 20 years, this article point out that the factors such as the ambiguity of the party best able to manage and control the risk in each phrase of lump-sum contracting, the insufficiency of incentive towards risk' s undertakers, the ambiguity of risks responsibility and etc, was the main factor that baffle the development of lump-sum contracting market in our country.First, this paper base on the theories such as the economic person assumption ,rules of risk effective allocation , puts forward the qualifications the risks best undertaker must have. The risks undertaker should have comparison Advantage on risks information and ability to control risks, the lost the risks lead can' t lead disaster to the risks undertaker. the risks best undertaker could be acknowledged through the ability of managemengt, techonology, finiance.Second , this paper use entrust - represent theory and incentive theory, considering the attitude of risks undertaker , this paper puts forward the incentive to the risk' s undertaker and the measure with responsibility distributed under different kinds of risk. For some risk which isn' t suitable to be distributed or encouraged among the project' s parties but suitable to project insurance, this paper analyses the characteristics the risk must have which suitable to project insurance. At last, this paper analyse the risks exist in the process of the lump-sum contracting enforcement. And uses the method to control risk in this paper to seek the best measure to control the risk, especially , this paper aimed to improve the model of lump-sum contracting to accommodate the need of risk controlling. in addition, this paper analyse the ablility to control risks in different relation between the contactor, this could give some advice for those who want to start the business of lump-sum contracting.