A dynamic mechanism of risk allocation of construction project from perspective of incomplete contract theory: A theoretical model

Abstract

Proper risk allocation (RA) can promote project management performance by means of contract clauses, but the existing researches were mainly on the philosophy of one-time and static RA, which hindered the project management performance improvement persistently. On the basis of literature review, the paper pointed out the characteristic of dynamic RA , and further analyzed the RA contract clauses of incomplete contract nature, and established a theory model of dynamic RA in construction project which includes initial RA and risk reallocation, which has important significance on reasonable RA in the process of contract negotiation between the project owner and the contractor.