The Research Of PMC Mode Based On Project Governance

More and more large projects have been appeared in China since we joined WTO and the reform was deepening. In this case, PMC (project management contract), which is one of the most popular project procurement modes has been introduced in China and been supported strongly by the government. But PMC has just been applied for a short time in our country, so in order to use it in a better way to construction; the paper gives a research on PMC with project governance, stakeholder and project management theories.The paper firstly introduces project governance theory in the theoretical basis part, which mainly includes two parts:one is the meaning of project governance, which focuses on the distinction and connection among project governance, project management and project procurement mode. The other is the basis economics theory of project governance, which includes stakeholder theory, transaction cost theory and Principal-agent theory. The second part of theoretical basis is the analysis of PMC project procurement mode, which focuses on the comparative analysis among PMC mode and others. Finally, the paper gives the improve way of PMC by the integration of project governance and project management.The main content of this paper includes two aspects. The first part is to give and optimize the governance structure of PMC by using the transaction cost theory in the stakeholder perspective and the advantages of EPC and Partnering. The outcome of it is to construct a project governance structure of PMC+EPC+Partnering. The second part is to give a research on risk allocation and profit sharing mechanism based on the governance structure mentioned previously. The method used in the mechanism is combine methods of qualitative and quantitative. In the course of the study, there are AHP methods, fuzzy comprehensive evaluation method. In addition, the paper uses virtual enterprise profit allocation method. At last the paper analyses the operation issues of PMC in Nanhai petrochemical project and give the suggestion that the project governance structure to optimize the project.