Research On Benefit Balance Mechanism Of Old Commercial Building Facade Renovation Project Under PPP Mode

The "big pie" model has been supplanted by a new stage of stock renewal,with China’s urbanization rate and service industry now accounting for more than 50% of GDP,and urban development transitioning from incremental growth to a new stage.The "organic renewal" of cities centered on the development of existing resources,which began around the urban core area,has become the mainstream of urban development in the new era.Among them,as the most concentrated area of commercial outlets in the city,the commercial block is the epitome and window of urban commerce,the integration of commercial multi-function,the important spatial form of urban commercial outlets and the type of urban area,the main public place in the city,and the most commercialized area in the city.With the rapid change of the city’s appearance,many old commercial blocks have gradually lost their vitality.The facade form of commercial buildings has been divorced from the pace of the times and can not attract customers mainly young people.The facade renewal of commercial buildings has been widely carried out in the old city;On the other hand,due to the development of a large number of urban renewal work,the cost of completely using government funds for commercial block reconstruction has become increasingly unbearable.PPP-funded projects have become a critical way for governments to finance construction projects in the current climate.The PPP model can be a powerful tool for alleviating the financial strain of the government,enhancing the quality and efficacy of the transformation,elucidating the management responsibility in the latter stages,and creating a mutually beneficial outcome for the private sector,the government,and business owners by taking full advantage of the private sector’s resources in terms of money,expertise,and other facets.The private sector’s requirement for a return on investment is the foundation.However,PPP mode will also bring about the problem of diversification of interest subjects while solving problems.In the commercial building facade renovation project under PPP mode,the commercial owner or commercial tenant,as the resource owner or stakeholder,forms a tripartite cooperation interest pattern with the government and private sector,and becomes an important interest subject that cannot be ignored.The appeals of various interest subjects are often distinct and contradictory,and the cooperation process is essentially a perpetual game.In this process,the disparity of interest between interest subjects is usually the main cause of the conflict of interest and even the downfall of the reconstruction project.In reality,due to the lack of effective and mature interest balance mechanism guidance,the demands of various interest subjects have not been well coordinated,and the interest protection measures are not sound enough,which also makes the commercial building facade renovation project lack of market operation power,and the successful landing project is far from the expected.Therefore,it is necessary to study the construction of the benefit balance mechanism in the commercial building facade renovation project under the PPP mode,so that all stakeholders can benefit from the renovation project,and promote the successful application of the PPP mode in the commercial building facade renovation project.Firstly,this article conducts research and commentary on relevant literature related to the renovation of old commercial buildings,PPP models,and interest balance mechanisms,in order to clarify the research content,research methods,and technical roadmap of this article.Secondly,this article defines the research concepts involved,elaborates on the relevant theories applied,analyzes the characteristics of old commercial building facade renovation projects under the PPP model,analyzes the tripartite stakeholders involved in commercial building facade renovation projects,and analyzes the evolutionary game pattern formed by the tripartite interests.Then,analyze the relevant choices of the tripartite interest groups in the project and the factors that cause such choices.Using the relevant knowledge of evolutionary game theory,set the variable parameters of each tripartite interest group,construct an evolutionary game model,and provide theoretical suggestions for the construction of a multi-party interest balance mechanism.Finally,this article takes the main interest relationships in actual case renovation projects as the analysis framework,analyzes various situations where the interests of the three parties may be imbalanced,and applies relevant knowledge of mechanism design theory to construct a tripartite interest balance mechanism for commercial building facade renovation.