Comparison of Alternative Construction Project Transaction Method Costs

Considering a dearth of comparing construction project transaction method, from the point of transaction costs, the overall construction project transaction costs is divided into ex ante transaction costs, construction costs, ex post transaction costs. A framework for comparing construction project transaction method is presented, and applied to a detailed analysis of the department of Taihu drainage area´s fist design-build pilot project. The results of the study provide a comprehensive understanding of how this new design-build transaction method affects project cost performance as compared to their traditional design-bid-build transaction method. Other owners can apply this framework to assess their own project transaction performance when employing alternative transaction methods.