Research on the competitive model in construction project based on game theory

There is a conflict of interest between the supervisor and the contractor in a construction contract. How to encourage both of them to exert their devotion is key to ensure the construction to be accomplished with high benefit and quality at a reasonable cost. Using game theory, this paper took cost-plus-percentage-fee contract by example and studied the game between supervisor and contractor. Firstly, a game model between these two players was set up; then the equilibrium point of their benefits and the equations of their struggling degrees were worked out. At last, through the analyses of the equilibrium outcome of this game, some advice on enforcing the construction management and improving the investment benefit from the points of view of client, supervisor, contractor and governor were put forward.