The Construction Agency's Reasonable Profit Research Based on System Dynamics

The government investment in the construction project general always use of the design budgetary estimate as the construction-agent charge fees foundation, and with reference to the owners management cost rate to calculate the construction-agent charge. By analyzing the composition of the construction-agent charge and the difference between the owners management cost and the construction-agent charge, studying of the composition and rates of construction-agent charge in various key cities nationwide in detail, pointing out the fact that the current generation of construction-agent charge rates are too low, and then established a system dynamics model and analyzed the relationship between a reasonable profit margins and project success rate dynamically. Pointed out the necessity of a reasonable profit margin, and make same recommendations accordingly.