Research On The Influencing Factors Of General Contractor’s Profit In Local Railway EPC Project

With the adjustment of the transportation structure,and the encourages of social capital investment in railway construction,the construction of local railways has been continuously strengthened.For local railway projects,the owner is local government or related enterprises,it is not necessary to invest various resources to explore and accumulate railway construction experience for them,so the EPC mode is the most efficient way,and it is the trend.For the general contractor,the construction of local railway projects means high risks,and the possibility of high profits.How to ensure general contractor’s profits is the main consideration for whether to undertake projects,and it is also one of the key points of the transition to the EPC mode for local railway projects.Discuss the profit influencing factors of the local railway project’s general contractor in EPC mode and their influence relationship and mechanism are beneficial to the general contractor’s control of profit,which can enhance general contractor’s enthusiasm and promote the transformation of local railway project’s construction.This paper first sorted out a preliminary list of 40 factors based on the relevant literature on profit factors of local railway EPC projects,project investigations and expert interviews;then through the questionnaire survey to collect opinions on the scientific selection of factors and the importance of selecting factors.According to the data analysis of valid questionnaires,the preliminary list was integrated and optimized,the final list of profit factors affecting local railway EPC project’s general contractor was compiled,which include 18 factors.Based on the final list,we use DEMATEL-ISM method to determine the influence relationship between the profit influencing factors and the degree of the relationship,and then the cause factors,result factors,and their hierarchical structure are derived,furthermore an integrated interpretative structural model is established.On the one hand,the model shows the degree of influence of each factor on the general contractor’s profit and its influence in the overall factor indicator system;on the other hand,the model divides the factors’ hierarchy,explained the influence transmission and action mechanism among the influencing factors of general contractor’s profit.The results show that: first,the key profit factors affecting the local railway projects’ s general contractor include the selection of subcontractors and the division ofsections,the financing method and the credit of the owner,the integrated management and evaluation of the general contractor,the attitude of the local government and the social environment.Second,the mutual influence between the profit factors is transitive,the underlying factors in the model can have an indirect and important impact on the general contractor’s profit of the local railway EPC project through the cumulative influence transmission.Third,the effect mechanism of the influencing factors on the profit of the general contractor is as follows: project environmental background and quality of the partner→management of the general contractor→project implementation→income and cost→the profit of the general contractor.Finally,put forward corresponding countermeasures or suggestions for the 18 influencing factors from the three aspects of the general contractor: itself,the partner,and the objective environment,hoping to provides some reference for the general contractor of the local railway EPC project.