1、 A New Management Model of Governmental Investment Projects in China CM is a construction model in which owners commit their project to construction manager to take charge of the whole management， including feasibility research，designing， procedure， construction， operation and so on CM project manag
2、er has the right to pick up contractors and architects under the limitation of the contract In China， Agent construction system is called Turnkey,and is a management model of engineering construction by means of consigning the project to specialized engineering management organization that is called
3、agent owner,who is familiar to laws， regulations， and construction procurements Agent owners are responsible for the control of investment management and construction of the project After the project has been finished， agent owners will turn the project over to owners In China，agentconstruction syst
4、em specially applies in the area of governmental investment project In the past project construction adopted the conventional management models，such as part Apart B contract， headquarters， and infrastructure departmentand so on These project management models brought about manydeficiencies， such as
5、nonprofessional management， overspending investment budget， and corruption phenomena， etc But agent construction system can overcome these shortcomings. Agent construction system embodies the principle of fair,open and just for investors，deputy and user It nails their rights and obligations down wit
6、h contracts； the project is operated in the light of biding， contract， and supervision Deputies can easily control the investment and scale of project Moreover,agent construction systemcan guarantee the quality of design and construction， and decrease the project cost， for deputies accumulate lots o
7、f experience in professional technology and management in practice for a long time In short， because of the separation of construction，management and use， agent construction system makes for implementing the goal of financial mechanism， laws and market It can stimulate deputies to control investment
8、 and improve quality Furthermore， the specialized team has guaranteed the specialized levels of project construction and management This agent construction system， a new management model of engineering construction， is adapted to governmental investment project in China With deepening of the reform，
9、 it is necessary that agent construction system is gradually popular in China. 2 Reviews on Experimental Practice ofAgent Construction System Among practical experiments of agent construction system， Shanghai an d Shenzhen are typical of experimental cities In 1999， Shanghai PuDong Consultant Compan
10、y was committed by Shanghai Planning Commission and wholly took charge of construct Shanghai fiscal project It is the beginning of agent construction system in Shanghai In December 2001，Shanghai municipality issued “suggestions on promoting the experience about reform of construction management syst
11、em of governmental investment projects.”The issue focused on separating the function of govemental investment from investment management It can radically change government furnctions In addition， It is helpful to set up the ownersstatus of investment and promote the foundationofengineeringmanagement
12、market Aftertheissue comissentobeing， the ownersstatusofinvestmentfor governmental investment project has been established Under agent construction model， engineering management firms that act as agent owners accept the commissionofgovernment and manage the governmental investment projects. There ar
13、e more than 20 provinces or cities to use agent construction system to constructiongovernmental investment projects or public projects In April 1998， Shanxi province founded a general construction management office to act for the owner of non-profit important project invested by government Beijing i
14、ssued“Management methods of agent construction model for govermental investment project in Beijing”on March 1， 2004 According to the situation， two groups of agent construction model have been formed One is the Shenzhen model that the appointed organization takes on the owner and manager of project，
15、 which refers to Hongkong mode1 Another is the Shanghai model， which adopts active measures， cultivates many engineering management firms， and properly separates the function of owner from project management 3 Analysis oil the Problems Existing in the Course of Practice of Agent Construction Model 3
16、.1 The Kind， Qualification， Operation of Deputy Need to Be Clarified.First， the kind of deputy affects the foundation of agent construction models regulations As far as the present situation is concerned， there are three types of deputies， namely enterprise，public institution， government body That d
17、ifferent places adopt different types causes a confused situation and does harm to the operation of agent construction mode1 Second， the qualification of deputies is different and needs to perfect again Third， the operation mode is different Some are that the deputies under ownerscommission employ f
18、unds， and build and manage the project all over the whole process； Some are that the joint departments established by owners and deputies construct and manage， and then appropriate funds Finally,agent scope is too narrow Agent construction model is limited to the public welfare project invested or d
19、ominated by government 3.2 Agent Construction Model lacks of Uniform Regulation First， deputies as the erectors and administrators of project needed to check budgets and ratify funds Thus original financial application， compilation of budget， and appropriation of funds should harmonize between user
20、and agency and renew regulation Second， the host of financial management and accounting accounts is not clear In the agent model， the project works in earlier stage maybe are finished by agencies； At one time， user purchases chief equipment by itself Because user and agent both use funds， the proble
21、ms come into being： who is the host of accounting，who should take charge of financial management， and who complete final accounts. Third， the standard of agenciescomissions hasnt uniform regulation Different places adopt different standards Some determine the agenciescomissions according to contract
22、orsadministrative expenses； some adopt costs adding axes and proper profits； 3.3 Agencies Are Weak and a Fair Agency Market Hasnt Been Formed First， as a whole， the quality of agencies isnt high Many agencies transit from original construction units， engineering consulting firms， engineering supervi
23、sor firms，engineering procurement firms， so their economic strengths， stafsquality,internal governance and so on cant reach the request Second， the number of agencies is not large In fact， only when many agencies join it， a fair,effective agency market may be founded But in our country,the number of
24、 qualified agencies is little and cant meet the demand of market competition 4 .The Perfection of Regulation of Agent Construction System Govermment department should summarize the experimental experiences and set down the regulations to direct the operation of agent model in the kind， qualification
25、，operation type， responsibilities， project scope， agent mode of agencies and so on 4.1 Type of Agent Organizations From the trend of development， the main type of agencies is enterprise As far as status quo is concerned， government bodies in China are so overstarfed that fiscal burden is too heavy S
26、o the policy has been implemented in order to simplify the government departments and reduce the staftrimmer If the type of agencies is government body or public institute， it deviates the policy of the govermment and aggravates the fiscal burden Thus the chief type of agencies should be enterprises
27、 who self-operate and self-take on profits or loss 4.2 Qualification of Agent Firms Agencies must be qualified engineering management firms and generally have some basic conditions as follows First， they own the qualification of a level Second，they have more than One year experience of engineering m
28、anagement， and have taken on the total management of a project which financial amount is over 100 million RMB Third， engineering management firms demand more registered capitals if they take on the larger investment projects.Fourth， the chief and technical principals should own higher qualification，
29、 the experiences and the capabilities of conduct，harmony,organization； or take charge of a project invested over 100 million RMB Fifth， they have designated a numbers of professional certificates， including higher engineer,higher economist， registered cost engineer,registered structure engineer,regi
30、stered supervision engineer and agency qualification Further more， they have the capabilities of checking design， auditing budgets， supervisingengineering quality andsafety 4.3 Execution ofAgent Works By now,the level of agencies is low on the whole Most agencies cant meet the required qualification
31、， lack practical experiences of total management and conduction In addition， we lack of laws and regulations about agent model， and the depth of external surveillance isnt enough Thus， we may adopt two kinds of ways in executing agent projects One kind is dividing the project into two parts： sitepre
32、paring works are consigned an agency to manage； construction works are consigned and other agency Another kind is that total works are consigned an agency who has higher qualified engineering management firm to do We should enhance the strength of engineering firm and promote the latter kind 4. 4 Scope of Agent Project At present， the scope of agent project is narrower and only is limited to public
