A Study On Profit Allocation Model Of Capital Construction Project In Substitute Establishment System

With the rapid development of economic in China, the scale of investment in fixed asset was expanding year by year, so was the capital construction project. However, the traditional project management pattern of capital construction project caused a lot of contradictions and conflicts in practice, because of its disadvantages like non-professional management, integration of government etc. Driven by benefits of diversity and enculturation, it was hard for each stakeholder to pursuit a win-win by effective cooperation, so the rent-seeking behavior appeared. As an innovative project management pattern which suited to China’s national conditions, substitute establishment system was proposed and implementation in capital construction project. The management function of government in traditional project management pattern was marketization in substitute establishment system. Through choosing an agent from the market, professional management service would be provided, and realized the separation of investor, manager, builder and user, which was an effective way to improve the international competitiveness of capital construction project.As a new project management pattern, substitute establishment system was also a new pattern of interest distribution. Based on its background, definition, feature, and implementation in capital construction project, this paper contrasted the similarities among substitute establishment system and the other project management patterns, described the formation mechanism of interest of each stakeholder and their relationship of interest distribution, then pointed out those influencing factors. Regarding to the features of substitute establishment system, this paper focused on the interest distribution of the owners, between the government investment apartment as the owner and the agent, and made an analysis about the gambling process. Interest distribution was not only according to work, but also incentive, including economic and social interests. This paper built an interest distribution model based on negotiation theory, from the perspective of non-common interest groups, analysis the reasonable pattern of interest distribution which could promote cooperation between the government and the agent, to realize the optimal output in project. Then a numerical example was given, and this paper researched the development of interest distribution mechanism, proposed some advice about principle, process, mechanism and policy to improve the existing interest distribution pattern. At last, combined with case study about several pilot projects in hunan, this paper discussed the details about interest distribution between government and agent.Based on the application of substitute establishment system to capital construction project, the paper discussed interest distribution problem at a time when the extensions for substitute establishment system has been explored, which would hold a mirror to the improvement of substitute establishment system.