Study On The Contractor's Risk Response Strategies Under The Fixed-price Contract

In recent years, with the rapid economic development, the continued rapid growth of investment in fixed assets and the accelerated development of urbanization, the construction market continues to grow. However, the profit of the domestic construction industry margins maintain at a low level long-term. It's a "profit" industry in the national economy. The weaknesses of the contractors are as follows, to be able to bid and tender with a loss, to bear additional risk, reasonable right on claims be limited and the seriously arrears of project payment. Although the fixed-price contract is common in the market, it encountered a lot of controversy in the implementation process. Contractors are more oppressed if they use this contract. So, it's important to solve how to bid, how to transform risk into profit and increase the income under the conditions of a fixed price contract for the contractor.This paper researches how to transform risk into profit and increase the income from both theoretical and practical application on the basis of domestic and foreign scholars. It includes the following aspects:(1)have in-depth analysis of the risk of contractors under the conditions of the fixed-price contract(2) focus on how to transform risk into profit with the guide of systems engineering(3)with specific cases to verify the theory(4) summary the main issues resolved in the paper and to point at the lack of paper.