A Literature Review on the Transaction Costs in Construction Projects

Because of the factors such as the complexity of the project,the bounded rationality of people,the incompleteness of contract,the asymmetry of information available for both the owner and the contractor in the course of construction,and the inconsistency of the earnings target between the contractor and the owner,it is inevitable for the contractor to take moral risk and adverse selection and therefore it is crucial to take it seriously the transaction costs of the construction project. The paper discusses the research status of the transaction costs in construction project in the aspects of the transaction market of construction project,the production mode and products of construction, the bidding mechanism and the contract design,the project governance,and the empirical study of the classification of construction transaction costs,on the basis of which the suggestion for the further research is presented finally.