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

and quality, procurement management, risk, human resources and communications (Demirkesen and Ozorhon, 2017; Meng, 2012; Ngacho, and Das, 2014). Poor performance of construction projects, especially in terms of time and latency, additional costs and quality defects, has attracted the attention of many construction researchers and project managers (Lo et al., 2006). Numerous studies have been conducted in recent years to identify the factors affecting over time and cost in construction projects around the world (Arditi et al., 2017; Cheng, 2014). These factors include defects in contract management, payment for work performed, imported materials, changes in design and defects in subcontractors, and supplier performance. In addition to the mentioned factors, a combination of variables such as poor labor productivity, material shortages, inaccuracies in estimating required materials, fluctuations in material costs, insufficient experience about the type and location of the project are also the main reasons for increasing time and cost identified during an EPC project in Indonesia. Other factors that have led to poor performance in relation to an EPC project in Hong Kong include errors and inconsistencies in design, poor site management and monitoring, and delays in approvals (Olawale and Sun, 2010). Navai et al. (2015), in the article Examining the existing weaknesses in cost management, examines the method of cost management in construction projects, the current attention to them in the project and identifying their strengths and weaknesses, as well as identifying the factors that are currently for cost management of this type of project is considered paid. They consider providing a precise schedule based on the analysis performed at the time of price bidding as a factor to achieve a successful cost management and also they know providing accurate daily reports away from any numbering to the project control department at any time for optimal cost management (Navaei et al., 2015). In a study on the effect of project management knowledge on the achievements of construction projects, Chou and Yang stated that external, operational, project management, engineering and financial factors have the greatest impact on project success by using PMBOK in projects. (Chou, and Yang, 2012). Examining the efficiency of using PMBOK in construction projects, Rodrigues and Crispim stated that cost control indicators, fluctuations, differences in construction design, material shortages or supply delays can play a major role in reducing project efficiency, which by Using PMBOK in these projects, these indicators should be considered to reduce costs (Rodrigues-da-Silva, and Crispim, 2014). De Carvalio et al. (2015), conducted a study on the impact of project management on project success. They consider time and cost as the basis of project success. They first examined the success factors of the projects and then, considering the factors influencing the success of the project, which were mostly provided by qualified experts, they examined various standards in this field and finally noticed the effect of cost and time factors as the most important. Project success factors and project management standard became the most complete standard for project success (De Carvalho et al., 2015). In the article Factors Affecting the Cost of Construction Tenders, Elhaq et al. (2005), Discuss the points of view of cost- effective surveyors based in the UK. They identified about 67 variables that affect the estimation of the pre-tender construction cost through works and interviews. These factors are divided into 6 categories including customer characteristics, consultant and design parameters, contractor characteristics, project characteristics, contract method, procurement method, external factors and market conditions. Then a questionnaire was used to evaluate and rank these factors. The results show that the costs of construction projects are more influenced by architects and consultants (Elhag et al., 2005). Kaming et al. (1997), In the article Factors affecting construction time and cost increase in long-term projects in Indonesia, factors affecting additional construction time and cost in developing countries such as Nigeria, Saudi Arabia and Indonesia and the relationship between the two Analyzed. The scope of this particular study focused only on long-term projects. In this study, thirty-one managers working on long-term construction projects were interviewed and the following factors were identified as factors affecting the cost of long-term projects in Indonesia: Unpredictable weather conditions, increased material costs due to inflation, incorrect estimation, increased costs due to environmental constraints, insufficient experience of project location, insufficient experience of project type, insufficient experience of local regulations (Kaming et al., 1997). According to the existing literature and talking to the managers of large companies contracting EPC projects, the hypotheses of the present study are presented as follows: Hypothesis 1: Proper design and engineering has a positive effect on increasing the EPC contractors’ profit. Hypothesis 2: Proper project planning has a positive effect on increasing the EPC contractors’ profit. Hypothesis 3: Timely financing has a positive effect on increasing the EPC contractors’ profit. Hypothesis 4: Timely supply of equipment has a positive effect on increasing the EPC contractors’ profit. Hypothesis 5: Quality manpower has a positive effect on increasing the EPC contractors’ profit. Hypothesis 6: The knowledgeable project manager and workshop supervisor have a positive effect on increasing the EPC contractors’ profit. Hypothesis 7: Project control has a positive effect on increasing the EPC contractors’ profit. © 2022 Global Journals Volume XXII Issue VII Version I 61 ( ) Global Journal of Human Social Science - Year 2022 E Designing an Optimal Model to Implement and Increase the Profitability of EPC Projects