Author(s)

Yang Liu

Corresponding Author

Yang Liu

Abstract

Traditional cost management focuses on cost control in the construction stage, ignoring the dynamic evolution of risk and comprehensive evaluation of benefits in the whole life cycle, leading to project cost overruns and frequent disputes. Based on the whole life cycle perspective, combined with game theory and incomplete contract theory, this paper systematically studies the risk sharing and benefit evaluation mechanism of construction project cost management under PPP (Public-Private Partnership) mode. Firstly, the whole life cycle risk of PPP project is identified by WBS-RBS method and Delphi method, and the fuzzy mathematics theory is used for quantitative evaluation. Secondly, a risk sharing model between government and enterprises based on game equilibrium is constructed, and Shapley value is used to calculate the risk cost or compensation that each participant should bear, so as to realize reasonable risk sharing. Finally, the multi-dimensional benefit evaluation index system covering four dimensions of economy, society, sustainability and development is established, and the improved fuzzy comprehensive evaluation method is used for dynamic evaluation to realize the linkage simulation analysis of "risk-benefit". Through the case study, the effectiveness and operability of the risk sharing mechanism and benefit evaluation system are verified, which provides forward-looking decision support for the government and social capital, promotes the transformation of PPP project cost management from "cost control" to "value creation", and helps the high-quality development of infrastructure.

Keywords

PPP mode, construction project, cost management, risk sharing, benefit evaluation