The Research On The Risk Management Of Agent System For Highway Construction Based On Principal-agent Theory

Construction-agent system is a management mode in which innovation systemand optimization procedure are implemented by different main bodies, comparedwith the traditional construction management mode, there are many advantages,including conducive to transformation of government functions, improve projectmanagement efficiency, to overcome“super-investment, super-scale of construction,super-standard”phenomenon, and to curb illegal activities. At the same time,highway agent system in the exploration process in China has also made gratifyingachievements, but in the implementation of the process, which leading to someproblem because of research deep not enough, lacking of theoretical basis andpractical experience, imperfect supporting systems and policies. And, as an agencyrelationship itself also due to internal and external factors, which results in varietyof risks. In order to promote highway agent system coordination and sustainabledevelopment, we should only take effective control and risk management methods.Based on the principal-agent theory, the paper focus on research and practice ofthe risks of the highway construction-agent project.In this paper, through the research on the origin and development of highwayconstruction-agent, it illustrates the related problem during the implementationprocess of the highway project. By the description of the theory of principal-agenttheory and risk management, it points out the basic characteristics of the highwayconstruction-agent project, and takes different risk management methods and meanson behalf of different risk subjects and different purposes, in order to achieve areasonable risk-sharing. The application of principal-agent theory on the highwayagent system project, commissioned by the risk factors in the agent process: adverseselection and moral hazard problems, summarized description. Then, the papercommissioned by the agent construction project model and analysis of agency theory,pointed out that the principal-agent cost of risk relating to the agent’s risk aversionand outside of the uncertainty. The same time, the paper analyzes the risk factors inthe highway agent system project, to be divided into a principal-agent risk factors,the external environment risk factors and internal environmental risk factors. Finally,according to the results of theoretical analysis, combined with the practice of thehighway agent system, carried out a detailed analysis of agent system project riskcontrol methods based on the principal-agent theory, taken measures to control various risk, including the agent corporation built to strict access management, theestablishment of the highway agent corporation credit system, the design of effectivecontract incentives, improve the terms of the agent contracts, reasonable risk-sharingbetween the principal and the agent corporation and perfect engineering undertaking,the insurance system.