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

large company with multiple departments and the authority to carry out the project is not the responsibility of a particular department. In this case, performing inter- sectoral processes, obtaining approval from different parts of the organization, performing the formalities of the transaction commission, etc., will prolong the project process in both the supply of equipment and construction. To prevent such problems, the contractor company should be project-oriented and give full authority to the project manager to manage and complete the project efficiently within the framework of the company's internal regulations. In every part of the project, from design and engineering to installation, the use of new technologies and innovation will reduce time and cost. Avoiding traditional methods and using new technologies, especially in the construction sector, will have a significant impact on reducing work time. Up-to-date machinery and equipment, the use of computer methods and robots, will facilitate the manufacturing process. In the design and engineering sector, creating innovation can reduce costs and increase company profits. In this regard, it is necessary for the engineering team to have sufficient expertise and knowledge and the necessary training in connection with creating innovation by the company to be held for them. Another important factor in the profitability of a project is having enough expertise to do it. Many large companies that win tenders do not have enough expertise to complete the project and outsource a large percentage of the work. Assigning different parts of the project to subcontractors will increase the number of contractors and thus increase costs and time. In this case, the project contractor will act as an intermediary between the subcontractors and the employer, and these exchanges will waste time and financial resources. Therefore, the contractor must have sufficient expertise in the field and outsource small parts of the project to the agenda. Timely supply of equipment and construction of the project according to the schedule, requires timely financing by the contractor. Financial problems and non-payment on time will delay the schedule, which will lead to a lack of equipment on time and, consequently, failure to build the project on time. The contractor company must plan so that it can inject the necessary financial resources into the project as planned. Of course, this requires the timely payment of the contractor's claims by the employer. In fact, EPC projects are two-way projects in which both the contractor and the employer must meet their obligations according to plan so that both parties can benefit. Sometimes in EPC projects, the employer can not provide the necessary financial resources to complete the project, which leads to a prolongation of the project implementation process and the contractor suffers. In many cases, the contractor finances the purchase of equipment, but after delivering the equipment to the employer and performing the construction operation, his claims are not paid by the employer. This will result in severe losses to the contractor. In such a situation, to avoid losses, the contractor must consider an appropriate strategy to continue the work. Figure 2: Contractor strategy for the project According to figure 2, if the employer does not pay the contractor's claims, the contractor can adopt one of the following strategies. 1. The employer has motivation to complete the project on time: In this case, the contractor can use the pressure lever on the employer and in exchange for receivables, complete the continuation of the project. 2. The employer has no motivation to complete the project on time but has the money: in this case, the contractor must adopt a peaceful and patient strategy and gradually receive her claims through management meetings. 3. The employer has neither the motivation nor the money to complete the project: in this case, the focus must be on foresight. If the employer is a large company with the ability to define a large number of projects in the future and the contractor wants to cooperate in those projects, it is better to pursue the same strategy peacefully and patiently. Volume XXII Issue VII Version I 66 ( ) 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 Motivation Money Foresight