Study of the Dynamic Game in Change Pricing between Owner and Contractor

摘要

Construction change is common and inevitable in construction practice and it makes up a large proportion of the initial contract price. Thus disputes often arise between the owner and the contractor in the process of change pricing. Based on this issue, this paper develops a Dynamic Game Model to analyze this process. After solving the game tree, the paper gets the equilibration paths in different conditions and concludes the key factors in the two sides' decision-making, such as the contractor's success probability and cost in mediation, the contractor's cost in arbitration and the owner's cost in mediation. At last, several suggestions related to the change pricing game for the two sides are presented.