Global Journal of Human Social Science, E: Economics, Volume 22 Issue 7

for the design, procurement and construction, and the other party to the contract (the employer) delivers a completed design according to what has been agreed (Huse, 2002). The contractor in the EPC project needs to be able to act in accordance with the parameters desired by the buyers of their services (Hartman, 2003). In general, it can be said that EPC contracts combine the three stages of engineering, procurement and construction in one contract. In this method of project implementation, despite the limitations for the employer, by transferring all project activities, including design, supply of equipment and activities related to construction, installation and commissioning to the contractor, the employer is relieved of responsibility in this regard. The implementation of industrial infrastructure projects in recent years in developing countries by the EPC method has expanded so much that today many ongoing activities are carried out using this method. Projects are often carried out by the project team as a means to achieve important organizational programs or services (Mahmood et al., 2014). Project management is the foundation of any construction project. Construction projects are multi-faceted and well-organized operations that consist of many tasks focused solely on the purpose of building and operating a project (Martens and Carvalho, 2017). Cost, time and scope have been the sides of the Project Management Triangle (PMT) for many years. These limitations have been linked to measuring project management success (Joslin and Müller, 2016; Larson, E.W., and Gray, 2015). Hussin and Rahman (2009) showed that 14% of projects are completed for more than the contract amount, while more than 70% of all construction projects are delayed and 10% of the project consumables remain as waste. The construction industry is a project-specific industry, and it is difficult to evaluate the overall performance of construction projects due to the lack of standard method development. The nature of the project, effective project management tools, and the adoption of innovative management approaches are critical success factors (CSF) for construction projects (Akinade et al., 2017). Therefore, the CSF must be determined at the beginning of the project. By focusing on these factors, which are the main input of the project management system, the probability of project success increases. CSF explicitly affects the main objectives of the project including time, cost and scope (Gudien et al., 2014; Lin et al., 2011; Maghsoodi, and Khalilzadeh, 2018; Tripathi and Jha, 2018; Love et al., 2016). Many factors affect the cost of EPC projects. Contracting companies that carry out EPC projects are looking to make a decent profit. Factors such as project pricing method, design and engineering, quality and duration of equipment supply, project execution time, project execution quality, human resource quality, use of information systems, etc. are effective in increasing contractors' profits. In this study, we intend to analyze the relationship of each of the factors affecting the profitability of EPC projects. a) Theoretical Foundations and Research Background EPC project management includes the management of the three main indicators of the EPC concept, namely engineering, procurement and construction and combining them with different financial areas, project scope, time, manpower, communications, risk, supply of goods and quality. The three elements of time, cost and quality are known as the sides of the project triangle. Prerequisite for managing financial costs and proper planning in a project is having a complete scenario of feasible actions and obligations of the employer and the contractor (Habibi et al., 2019). The Project Management Body of Knowledge (PMBOK) is a recognized standard for the project management profession that provides guidelines for individual project management. The PMBOK standard is a comprehensive set of related knowledge, which forms work skills. As a result, this phrase means a comprehensive set of project management knowledge. Project management means the application of knowledge, skills, tools and techniques related to project activities in order to meet project requirements. This application of knowledge requires effective management of appropriate processes. The main goal of project management is to complete the project on time and according to the defined budget. In addition, the project manager needs to work closely with the client and must ensure that the project results meet customer expectations (PMI, 2017). The surest way to understand the success of a project is to evaluate it with the strategic goals of the organization. In order for both project management and project success to occur, it is imperative that the criteria for success be formulated and explained from the initial phase. It is important to note that traditional criteria focus only on the economic aspects, while the social and environmental aspects are also important in determining the success of projects. Therefore, for successful project management, a balance and harmony must be established between these parameters so that a successful project can be achieved in the end. Therefore, projects can be considered a failed project even if they are completed on time and on budget. (Frefer et al., 2018). According to the project management standard, Majd and Mortaheb tried to identify the effective risks in EPC projects in order to obtain the critical path, and analyze the impact points (Majd, and Mortaheb, 2008). Chou et al. (2013) conducted research on professional construction knowledge of project management. In this study, a model was proposed in which the effect of various factors on the success of the project is related to the areas of knowledge studied. These areas of knowledge included project scope, time, project cost Volume XXII Issue VII Version I 60 ( ) Global Journal of Human Social Science - Year 2022 © 2022 Global Journals E Designing an Optimal Model to Implement and Increase the Profitability of EPC Projects