Design of Incentive Mechanism for Construction Project Managers

Construction project manager's speculation behaviors are series problems. In order to solve the problems in establishing incentive mechanism for construction project managers, this paper analyzes the optimal incentive contracts between construction enterprises and their project managers under symmetric information condition and asymmetric information condition through mathematical models and game theory. The incentive coefficient of the project managers is given. The influential factors on the incentive coefficient are discussed. The results show that the incentive contracts of the project managers are affected by their abilities, effort costs, risk aversion degree, etc. The new designed incentive mechanism not only results in theoretical innovation, but also has great application value in practice.