Multi-Factor Incentive Pricing Bi-Level Programming Model for Construction Project

Aiming at the problem of asymmetry information between the owner and the contractor in construction project. In order to motivate the contractor to produce, taking cost, quality and progress as incentive factors, and considering the interests of both parties, based on the three factors' relationship function, the bi-level decision-making model of the multi-factor incentive pricing is built. The upper model takes the incentive coefficients as the decision-making variables and maximize the expected utility of the owner as the objective, the lower model takes the efforts' degree as the decision-making variables and maximize the expected revenue of the contractor as the objective. The model is solved with the aid of one example by genetic algorithm and the optimal incentive coefficients are obtained. Finally, through numerical simulation, the variation laws of the incentive coefficients under different influencing factors are obtained.