Application of System Dynamics for Influencing Factors of Contractor’s Profit Identification in the Public Warefare Project

This paper analyzes numerous influence factors of public warefare project from the perspective of stakeholders by using the system dynamics method, based on the contractor's profit influencing factors of public warefare project. This study builds the system dynamics model of contractor's profit influencing factors and analyzes the structure of the dynamic relationship between various influencing factors, determines the boundary point and numerical of the model, constructs system equations as well as collect data on the influence factors for vensim simulation, analysis and computer simulation by the means of questionnaire survey method. The research results show the influence of different factors on the contractor's profit of the degree. The main influencing factors of contractor's profit influence are: the contractor's own construction organization way, the influence of the construction unit, the contract changes, and the government's investment and policy. Therefore, in the process of construction, contractors need to focus on controlling the main influencing factors so as to maximize the contractor's profit.