The analysis on Joint Venture Sharing Rate for Construction Firm

• Main Authors: Gao, Wei-cheng, 高煒城
• Other Authors: Hsieh Ting-ya
• Format: Others
• Language: zh-TW
• Published: 1997
• Online Access: http://ndltd.ncl.edu.tw/handle/05064157501292747470

碩士 === 國立中央大學 === 土木工程學系 === 85 === Joint venturing (JV) is a useful concept to be employed by constructors for reducing construction risks and acquiring technology and know-how external to their organization. This concept is particularly critical, as the construction project in consideration is both large-scale and technically complicated. Constructors of different business scales and with diverse areas of technical capability can form a project-based team for meeting the client''s needs, while each participating firm can produce reasonable profit for himself and others and perhaps establish a new specialty.In this study, it is argued that the key bottleneck for JV among constructors is the lack of a systematic means for sharing construction risks which may or may not be rationally evaluated among partners. A crucial index for examining the risk-sharing behavior is the share of capital earmarked by each partner for the project. Clearly, the higher the share, the more sensitive to the gain or loss of the partnering. If the share of each partner can be rationally justified against his tolerance to loss and the distribution of the projected return, it may be possible for the entire team to act more towards the common goal, without the cost of moral hazard among partners.This study incorporates the idea of utility to represent a constructor''s risk attitude and preference towards riskdecisions. By characterizing the JV models, various partnering strategies are simulated. The major finding of this study is that JV can be a profitable strategy, regardless the constructor''s ability to contract the entire project. Also, for the JV team to form with ease, a rule of thumb is that the partners need to have highly diverse risk attitudes and a consensus on the distribution of projected return.