Author(s)

Qian Zhang, Yilin Yin

Corresponding Author

Qian Zhang

ABSTRACT

With the rise of the government and social capital cooperation (PPP) model in the Chinese market and its gradual expansion, construction enterprise in China’s context have actively participated in PPP projects, but they have omitted the bid for secondary construction and generally implemented “two marks and one standard”. Through the analysis of incentives for PPP projects, it shows that incentives are effective measures to increase the enthusiasm of social capital participation, improve agency efficiency, and promote social capital to actively achieve goals; this paper further summarizes the incentive measures for social capital through case studies, based on the greatest interests of construction enterprises. The goal is to obtain construction profits, identify the most critical incentive factors as “two targets and one target”, and finally establishes an incentive effect model and the incentive mechanism to study the “two targets and one target” to entrust construction and operation to the same construction, and then affirms its active role.

KEYWORDS

PPP project, two targets and one target, construction enterprise, incentive