Incentive Contract Study on the Design Optimization and Innovation of Green Buildings: A Perspective of Value Chain

The optimization and innovation of design play a crucial part in increasing the whole merit of the value chain of green building. As major proprietors passing on the value of green building, architecture developers should motivate design enterprises to enhance their level of working effort through contract planning. The Stakelberg game model is applied in this paper, and the approach to determine the income/cost sharing coefficient of optimization & innovation is explored, which is a key parameter of incentive contract. The study reveals that architecture developers determine the income sharing coefficient not only by the design enterprises’ level of effort, but the achievements in “benchmark green buildings”; after the income sharing coefficient r * are confirmed, the optimum cost sharing coefficient t * is then obtained, which is t * = 2 3r 2 r , with 0<r< 2 3 . The research results provide theoretical references and methodological routes for architecture developers to design incentive contracts.