The Analysis Of Transactional Cost For Construction Disputes

The construction industry is one of the basic industries of the national economy.For a long time, because of the laws and regulations are incomplete, industrialsystems and management models are not perfect as well as some other reasons, Thelife cycle of the number of projects are often accompanied by a large number ofdisputes and conflicts,consume a lot of time invested and expenses caused by the social resources alarge number of waste, greatly increase the project participate in the side of thetransaction costs, easier to trigger a series of social problems. Transaction costeconomics regard transaction as the basic unit of analysis, Investigate from anotherpoint of view of the meaning of the organization’s existence and development. Inrecent decades, the transaction cost theory is widely used in many fields of socialscience research, provide a new way to research the related disciplines.With reality, this article select the project dispute arising from transaction costsfor the research topic, transaction cost economics as an analytical tool,Systematically, and quantified analysis of the transaction costs generated by theproject dispute, reasonable engineering disputes and recommendations. Specifically,this first transaction cost theory and research status study and summarized in theanalysis of relevant literature on the basis of asset specificity, uncertainty andtransaction frequency in three aspects, while the use of transaction cost economicmodel of construction contracting industry for the study, carried out detailed studieson the application of transaction cost economics in the field of construction projects.And then, use a combination of qualitative and quantitative research methods, on the one hand, starting from the engineering dispute the causes, classification and todispute the status of the transaction costs of the project, direct costs, indirect costs andpotential cost the largest category of transaction costs broken down and defined,thedesign of the building business analysis projects list of the transaction costs of thedispute; the other hand, in order to collect the120dispute cases for the sample, onwhich the amount in dispute, the judgmentamount and the transaction costs statisticsand organize specific research arrears, penalty and economic losses the transactioncosts of the three type of dispute to arrive at the ratio between the types of costs andexpenses generated by the project dispute. Ultimately, the qualitative and quantitativelevel attributed to the proposed transaction costs are minimized shaft end settlementproposals. That the contractor for such aseconomic loss recognition is not high thedispute when the dispute is obviously due by the owner, the owner should considerbefore embarking on litigation in the dispute to make concessions in order to avoidunnecessary inputs; the amount of complaints, should not blindly raise the amount indispute, so that the dispute remained unresolved.Economic loss of this mutualrecognition is not a high amount in dispute to appeal, should not blindly raise theamount in dispute, so that the dispute remained unresolved.This article is intended that the preliminary analysis of the constructioncompanies and engineering disputes through the use of transaction cost economicstheory, from the perspective of transaction cost economics transaction costs onbuilding the corporate governance structure and engineering disputes.