Research On The Hby Real Estate Contract Risk Prevention

From our daily life to all kinds of social economic activities, risk is very closely associated with us as an concept involved with uncertain adverse consequences. Lots of activities are suggestive of the importance of risk management, such as we belt up while ridding in a car or buy commercial insurance while driving a car, and enterprises strengthen internal training for the staff or entrust a specialized company to undertake the sales.As a member of the social economic activities, enterprises'interest protection and obligations fulfilment enterprises are both associated with this exclusive noun—contract. As the reform and opening-up is in the deepening stage, all kinds of laws, regulations and the legal environment should be improved further. Therefore, the main responsibility ones always want to protect their own interests and the contract management ability of all parties are irregular, these make endless contract disputes and adverse consequences emerge. Especially in recent dozen years' rapid development of domestic economy, the importance of contract risk in real estate industry also gradually become apparent while this industry is a significant link relevant to national welfare and the people's livelihood. Due to poor contract risk management,the revenue of enterprise may reduce if arrearage and malicious claim arise, and consequently, the project may be shut down or can not be handed over to proprietor on time as a result of construction debt defaulting for capital shortage. Finally, not only the enterprise may go bankrupt, but also it may cause customers collectively return the houses or resort to higher authorities when it is not possible to return purchase, this will lead to instability to enterprise and society as well.This paper expounds the whole formulating process of HBY property company's contract risk management solution for the planning project. Firstly, combined with the previous contract management enterprise data analysis and common risk category and features of real estate industry, also taking accout of the specific condition of this project, we analyse from various angles of the risk source and reasons relevant to contract may arise in the development and sales process of this project. Secondly, we put the contract risk may be faced with in this project into two kinds of risks, one is external macroscopical risk which including political risk and sociocultural risk, etc., and the other one is internal microcosmic risk which including market risk and price risk, etc.. Thirdly, we use brainstorming method, Delphi method and analytic hierarchy process orderly to analyse possible risks by qualitative and quantitative risk analysis together. Then by using risk analysis, risk identification, risk evaluation program,we can reach to the probability of the possible risk may arise in the process of contract negociation and performing. Finally, combined with our own work practice experiences, especially contract risk management theory, we formulate the risk prevention plan according to the former condition of contract management and the characteristics of the project. Based on the study of contract risk management and focusing on construction and sales fields mainly, this article probes into the method of developers to establish and improve the contract management.The significant achievement of this study is that a set of system, processes and contract version of contract risk management was set up in order that our enterprise and others in the same industry can use it for reference and make progress.