The Studyies On Control The Transaction Costs Of The Construction Contract Breach Remedies

Breach of construction contract is a very serious problem, and the constructiondisputes are also very common. The construction contract breach remedies system inour country is imperfect, and the effect of remedies is not good, lead to breach anddispute can not be solved. The parties to the contract have the burden of a large numberof transaction costs, which is not conducive to the development of China’s constructionindustry. Therefore, how to control the transaction costs of the construction contractbreach remedies, and improve the efficiency are the problems which we need to resolve.On the basis of study of the breach remedies and transaction cost, this paper definedthe construction contract breach remedies.By analyzing the present situation ofconstruction contract breach remedies in China, discovered the problem of thetransaction costs is too much.And divided the transaction cost to fixed costs andvariable costs by the qualitative analysis. Then, establish the model of analytic hierarchyprocess against the Influencing factors of transaction cost, and quantify the impact ofvarious factors. We found the key issues of controling the costs.Through the study and model analysis, establish the saving mechanism of thetransaction costs of the construction contract breach remedies. Control and optimizeperformance of the construction contract stage by the saving mechanism, to reduce thetransaction costs. It has certain theoretical and practical reference value to control thecosts and improvement of construction contract breach remedies system.