Abstract: Incentive control is the basis for ensuring the project duration, quality and cost objectives. The literature review finds that traditional incentive model of construction project usually considers one or two objectives. Researches on multi-factor incentive models are not yet mature: not considering the correlation between multiple factors, and the quality objectives are difficult to quantify. This may lead to neglecting some important factors in the process of construction, resulting in the irretrievable loss. In view of the above problems, two basic performance measures in EVM system are used, quality quantified, considering substitutability between multi-factors, establishing a multi-factor principal-agent model, and illustrating the application conditions of the model. Furthermore, a calculation method is derived for optimal incentive strength, and the application steps listed. Finally, a case study and data simulation are carried out.

Key words: multi-factor, principal agent theory, earned value management