An Analysis of the Application of Project Management Contracting and the Build-up of Incentive and Regulating Mechanism

Project Management Contracting is a new construction project management model,which emerges in the international construction industry recently.The two basic principal-agent relationships are analyzed based on the principal-agent theory.The model is built to solve the principal-agent problem between owner and the contractor based on incentive and regulating principal,which makes the project optimized.