Revenue distribution and coordination research of general project contractor based on different strategies

Profit distribution is one of the important issues of construction supply chain. this paper sets up revenue models of the general project contractor based on incentive theory and game theory to study revenue distribution and coordination between the contractor and the subcontractor. The revenue allocation proportion between the contractor and the subcontractor and the optimal effort level of them respectively in independent decision-making and the centralized decision-making are found by solving the model. Research shows that the total revenue of the general project in the centralized decision-making is greater than the revenue in independent decision-making, the maximum revenue of the general project and “win-win” of the parties can be realized by coordinating the revenue of the contractor and the subcontractor.