Measurement Research on the Incompleteness of Project Contract Based on SEM

The incompleteness of project contract has become normal, leading to low efficiency of the implementation of the project contract, high transaction costs of project contract, and frequent project contract disputes. This research built the measure model of the incompleteness of project contract on the basis of the relevant literature research, carried out reliability test, and finally applied structural equation modeling to test the measurement model for its validity, confirming that the project contract completeness measurement model is both effective and scientific. The results show that: the incompleteness of project contract measure model includes three dimensions which are bounded rationality, limitations of language description and strategic ambiguity. It can provide guidance for the establishment of compensation mechanism for the incompleteness of project contract.