Abstract Contract compensation as post-adjustment incentive mechanism has its two sides leading to the dilemma of compensation incentive. The reason is that the contractor may take performance decision according to the justice perceptions of contract compensation. In line with the theory paradigm of contract as reference point, the paper mainly analyzes contractor’s performance choice based on justice perceptions. And then the paper develops a theoretical model discussing the effect of three dimensions of justice perceptions on the contractor’s performance behavior, and the model is tested by structural equation model. The empirical results show that the consummate performance behavior of contractor is more susceptible to justice perceptions; in order to inhibit the opportunistic behavior of contractor, it is necessary to focus on interactional justice; and distribution justice perception has the greatest impact on the contractor’s performance behavior.
