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Study on Distribution Proportion of Profits between General Contractor and Subcontractor |
GUAN Bai-hai |
China Railway No.8 Engineering Group Co. Ltd, Chengdu, Sichuan 610031, China |
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Abstract Research purposes:The purpose of this research is to seek a reasonable distribution mechanism of profit between general contractor and subcontractor to enhance the subcontractors' enthusiasm in attending the project design for optimizing the project design and reducing the total cost of the project.
Research conclusions:The pains taken by the subcontractor to optimize design is in direct proportion to his coefficient of efficiency in knowledge and the profit distribution, but it is in inverse proportion to his coefficient of cost in knowledge and the proportion of designing fees in total project cost. The optimal distribution proportion of the whole projects' profit given to the subcontractor is in direct proportion to his coefficient of efficiency in knowledge, but it is in inverse proportion to his coefficient of cost in knowledge and general-contractors' coefficient of efficiency in knowledge.
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Received: 15 May 2009
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