Stakeholder management In Construction Industry

Stakeholder Management

Girish Kumar SinghSPA/NS/BEM/612

in Construction Industry

1. INTRODUCTION

Project stakeholder management includes the processes required to

identify the people, groups, or organizations that could impact or be

impacted by the project, to analyze stakeholder expectations and

their impact on the project, and to develop appropriate

management strategies for effectively engaging stakeholders in

project decisions and execution.

Stakeholder management focuses on understanding stakeholders’

needs and expectations, addressing issues as they occur, managing

conflicting interests and fostering appropriate stakeholder

engagement in project decisions and activities.

AIM To identify different stakeholders in the construction industry and

stakeholder involvement in different stage of construction.

OBJECTIVES

• To identify different stakeholders in construction projects

•To identify the needs/requirements and expectations of different stakeholders

•To identify various satisfaction attributes that affect stakeholders’ performance in

project delivery.

SCOPE AND LIMITATION•The study will have a limitation of research in the field of

construction industry only.

•The study will focus on identifying different stakeholders in

construction projects.

•The study will focus on identifying the needs/requirements and

expectations of different stakeholders

•The study will focus on identifying various satisfaction attributes for

stakeholders

•The study will generate questionnaires for survey to get feedback

from different stakeholders of the project.

Phase 1

Phase 2

Phase 3

Phase 4

• Definition of research• Literature study• Study on project stakeholder management

•Identification of stakeholders•Identification of stakeholder satisfaction attributes •Stages of construction project & Engagement of stakeholders

•Stakeholder Management in Real Estate Industry•Stakeholder Management in a Infrastructure Project

•Pilot Survey•Case studies•Conclusion

Chapter 1,2,3

Chapter 4 & 5

Chapter 6 & 7

Chapter 8,9

METHODOLOGY

Literature Review• External Stakeholder Management in the Construction Process (Olander, 2003)

• Investigating the Stakeholder Management in Construction Projects in the Gaza Strip

(Sawalhi, 2013)

• Stakeholder management in construction: An empirical study to address research gaps in

previous studies (Jing Yanga, 2010)

• Construction project success analysis from stakeholders' theory perspective (Moradi, 2011)

• Strategic Management of Stakeholders: Theory and Practice (Eden, 2010)

• Project stakeholder Management (Jepsen,2013)

• PMBOK Body Of Knowledge 5th Edition

• ISO 21500 Guidance For Project manager

Unpublished Works• Stakeholder Management In construction planning done by Amit Singh of MBEM in

2012.• Stakeholder Management in construction done by Thenunochet of MBEM in 2013.

Chapter 3 Stakeholder Management

A stakeholder is any individual, group or organization that can affect, be affected by, or perceive itself to be affected by a programmer.

Stakeholder management is a critical component to the successful delivery of any project, programmer or activity

Two Content Layout with SmartArt

Group A

Task 1

Task 2

Group B

Task 1

Task 2

Task 3

First bullet point here Second bullet point here Third bullet point here

Investigating the Stakeholder Management in Construction Projects in the Gaza Strip Prepared by: Salah Hammad 2013

Type of stakeholder Direct Stakeholders (Internal Stakeholder)

Client, Project Sponsor, Project Manager, Member of the Project, technical and financial service providers, internal or external consultants, material and equipment suppliers site personnel, contractors and subcontractors

Indirect Stakeholders (External Stakeholder) Internal managers of the organization and support staff not

directly involved in the project, national and local government, public utilities, licensing and inspecting organizations, technical institutions, professional bodies, and personal interest groups, labor unions and pressure groups .

Positive Stakeholders Negative Stakeholders

TYPES OF STAKEHOLDERS

Internal Stakeholders External Stakeholders

• Private clients • Public clients• Architect • PMC • Structural engineer • Building service engineer• Main contractor• Sub-contractors • Laborers • Suppliers• Owner• User

• Government authorities • Consultation bodies such

as district board • Town planning board • Media • Institutional

Forces/Nationalized Industries

• Local residents/community

• Local landowners

• Archaeologists • Environmentalists/

conservationists • Competitors • Tourists• Others• Labor union/employers’

association • General public

2. STAKEHOLDER THEORY

The stakeholder theory literature can be seen as:

•Normative Theory

•Analytic Theory

o Descriptive

o Instrumental Approach

Stakeholder Salience Theory

Type AExplicit/implicit recognized Shareholders,Top managementPartners

Type BImplicit unrecognizedThe general public,Companies connected throughCommon trade association

Type DExplicit/implicit recognizedTrade unions,Low-level employees,Government, Customers,Creditors,Some NGOs

Type ENo contractAggrieved or criminalmembers of the public,Some NGOs

Necessary Contingent

Critical Realist Stakeholder Theory

Compatible

Incompatible

Type AExplicit/implicit recognized Shareholders,Top managementPartners

Type BImplicit unrecognizedThe general public,Companies connected throughCommon trade association

Type DExplicit/implicit recognizedTrade unions,Low-level employees,Government, Customers,Creditors,Some NGOs

Type ENo contractAggrieved or criminalmembers of the public,Some NGOs

Necessary Contingent

Critical Realist Stakeholder Theory

Compatible

Incompatible

Power Grid

3. PROJECT STAKEHOLDER MANAGEMET(An overview of Project Stakeholder Management, PMBOK 5th Edition)

Project Stakeholder Management Processes

1. Indentifying Stakeholders2. Planning Stakeholder Management3. Managing Stakeholder Engagement4. Controlling Stakeholder Engagement

Plan Stakeholder Management: Inputs, Tools & Techniques, and Outputs

Identify stakeholder: Inputs, Tools & Techniques, and Outputs

Control Stakeholder Engagement: Inputs, Tools & Techniques, and Outputs

Manage Stakeholder Engagement: Inputs, Tools & Techniques, and Outputs

KEY STAKEHOLDERS IN CONSTRUCTION PROJECTSCUSTOMER/CLIENT: Basically customer maybe the project owner or

the user client.

The Project Owner is the person who:

•Stands to win or lose the most in terms of the outcome of the project

•Accepts full authority for the project

•Accepts accountability for the performance of the project (and who

wants to do the project)

•Provides resources.

User Client is the person who will use and be benefitted from the

project or the change brought about by the project.

Needs of Customer/Client

•Friendliness: Associated with being greeted graciously and be

acknowledged and welcomed by the project participants.

• Understanding and Empathy: Customers need to feel that the

project team understands and appreciates their vision and

circumstances without criticism or judgment.

•Fairness: Customers need to feel they are being treated fairly.

Customers get very annoyed and defensive when they feel they are

subject to any class distinctions.

•Control : Customers need to feel they have an impact on the way

things turn out. The service provider’s ability to meet this need for the

customer comes from their own willingness to say “yes” much more

than to say “no.”

•Options and alternatives: Customers need to feel that other avenues

are available to getting what they want to accomplish and they want

the service provider to know about what all new alternatives they

come about

• Information: Customers wants and needs to be educated and

informed about all the work that has been done and are in progress

not leaving anything out.

Expectations of Customer/Client

•Completion on Time

•Quality of work

•On Budget

•Safe

•Flexibility

PROJECT MANAGEMENT TEAM: Project management team consists

of the project manager and the project consultant.

The Project Manager is the person responsible for managing the

project right from the planning of the project to the closing of the

project.

Project Consultants are professional advisors with experience who

are hired to perform a specific project or are sometimes contracted

to assess the current effectiveness of the management team of a

specific company or other organization.

Needs of Project Management Team • Co-operation: The project manager requires all the project participants to co-operate with each other and work together with mutual understands and not be an obstacle for one another. • Reporting: The project manager requires the project participants to report daily the work on site and report any mishaps at the earliest. • Control: The project manager requires the project participants to do their work as scheduled and as directed. The project manager looks after all the details of the work and takes the control of work progress upon him and let no work go astray but be done under observation and under controlled environment. •

•Honesty: The project manager requires the project participants to be honest about their work and also maintain it with each other for a smooth execution of the project. • Communication: The project manager requires the project participants to keep a good communication flow with each other and also a good communication is required with the client as well to know his/her opinion on the progress of the work.

Expectations of Project Management Team

• Safety: Health and safety procedures are with no incidents carried

out and the strategies for managing any project risk are at place.

• Time: The project manager expects each phase of the work to be

completed on time on the whole project to be completed on

scheduled timeline. Also sufficient time must be allowed for tender.

• Quality: Quality of work with every detail is much expected and no

compromise should be made with quality for the project to complete

on time.

• Cost/Payment: Payment must be made regularly as per contractual

agreement and changes is price shall be fairly introduced. And also the

cost estimations are per the requirement.

PROJECT TEAM MEMBERS: Project team members are the groups that perform the work in the project. Project team can be basically divided into Design team, Structure/Engineering team and Implementation team. Design Team includes the Architect, Designers and the Surveyors.

Needs of Design Team • Client Interpretation: The design team needs the client to open up all that he/she wants and invisioned about. His/her requirements and the purpose it will serve all so forth. • Communication: The design team needs a good communication flow with the project participants.

•Budget: Budget is a major constraint for the designers to design a project. All the designing and concept eventually revolve around the budget limit. • Reporting: The design team needs frequent reports of the work status and progress, if the work is being delivered as desired and in accurate detail as per the design.

Expectations of Design Team

• Time: The design team expects the project to be carried out in the

estimated time frame.

• Quality in design: The design team expects the project participants

to deliver the required quality in the design and do justice to the

design.

•Environment and safety: The designers are very conscious about the

environmental impacts during and after the completion of the project.

Utmost care should be taken to avoid any mishap during construction

and also impact of environment should be taken into consideration

while building.

Structure/Engineering team includes Civil, Electrical and Mechanical

Engineers

Needs of Engineering Team

• Proper Design: The engineering team requires a proper and

functional design from the designers with proper space planning and

service planning.

• Client’s objective: The engineering teams needs to understand the

client’s objectives and requirements, what all services does he/she

want, up to what extend and how.

• Communication: The engineering team requires a good

communication flow with all the project participants for a good

project delivery

Implementation team includes the Main contractor and the sub-contractor. Needs of Implementation Team • Sufficient time for tender: The contractors require sufficient time for tendering for formulating their work, estimation and strategies. • Project detail: The contractors require sufficient project design details and information to carry out the work as per the needs and requirements of the client. • Trust: The contractors require the client and the others to trust in their ability to deliver the project as per their expectations. • Communication: A good, open and friendly communication flow is required by the implementing team to carry out their work successfully.

• Payment: Payments should be made on time as per the contractual agreement. Expectations of Implementation Team • Quality in supply: The contractors expect the manufactures and the suppliers to provide them quality materials and resources. • Health & Safety: Safety and precaution during construction is highly recommended and expected. • Time: To meet the time dead line is most anticipated.

SUPPLIERS

Suppliers are groups that provide all the materials and services

needed for building projects. The term ‘supplier’ encompasses a very

diverse range of roles, duties, and skills. As such, their responsibilities

vary from project to project. The best suppliers are reliable and

efficient, and as a result, they have great relationships with their

clients.

REGULATORY BODIES/GOVERNMENT

These bodies serve as principal source for standards, regulations,

policy, programs and assistance to the construction industry, and the

general public with respect to occupational safety and health.

Firms supply the central government with a large part of its income.

They can influence their decision, though, especially if they are large

and powerful.

PRESSURE GROUPS/INFLUENCERS

Pressure groups may be stakeholders if they are affected directly or

indirectly by the actions of a firm. They can influence positively or

negatively during the course of the project. Local communities, for

instance, may form a pressure group to prevent a form from

expanding its premises or even setting up in the first place.

5. STAGES OF CONSTRUCTION PROJECT

INCEPTION STAGEThe inception stage of any construction and development project requires the client to make some important decision that a potential project represents the best way of meeting a defined need.

In assessing the need for construction, key questions should include:• Why is the project needed?• How best can the need be fulfilled? • What benefits are expected as a result of the project?• What are the investment/funding options?• What risks related to the development can be foreseen at this stage?Client’s Internal Team•Project sponsor•Client’s advisor•Project manager

FEASIBILITY STAGE

At this stage, the client will commission feasibility studies and

establish that the project is both deliverable and financially viable. The

client should instruct the project manager at this stage that his or her

input will be made alongside the reports and views of various

consultants.

Feasibility study reports should include:

•Scope of investigation including establishing service objectives and financial objectives.

•Studies on requirements and risks.

•Public consultation (if applicable).

•Geo-technical study (if applicable).

•Environmental impact assessment.

•Health and safety study.

•Legal/statutory/planning requirements or constraints.

•Estimates of capital and operating costs (demolition costs, if applicable).

•Assessment of potential funding.

•Potential site assessments (if applicable).

Client’s objectives

The objectives for the client at this stage include specifying project

objectives, outlining possible options and selecting the most suitable

option through value and risk assessment. Establishing the project

execution plan for the selected option should be the key output at this

stage.

The following data will be produced on this stage:

• Outline Project Brief

• Site selection and acquisition

• Detailed project brief

• Scheme design

• Project execution plan (PEP)

STRATEGY STAGE

At this stage, the project manager performs several principal activities which may include all, or most of the following:

• Reviewing the detail project brief with the client and any existing

members of the project team to ascertain that the client’s objectives

will be met.

• Establishing, in consultation with the client and other consultants, a

project management structure and the participants’ roles and

responsibilities, including access to client and related communication

routes, and decision required’ points

STRATEGY STAGE

•Establishing that ‘value management’ is applied effectively from the

earliest stages of the preparation of the design brief until the design

is complete.

•Putting in place procedures for managing risk as a continuous

project activity.

• Selection, or development, and agreement of the most appropriate

form of contract relative to the project.

• Making the client aware of relevant statutory submissions and

other consultations that may be required in the delivery of the

project.

PRE-CONSTRUCTION STAGE

Pre-construction involves establishing the detailed design, the

preparation of tender documents and the tendering process. However,

the precise sequence of activities will depend very much on the choice

of procurement system, and the type and form of contract selected.

The following are done at the stage:

• Design management

The project manager forms a meeting with the design team and any

other consultants/advisers to review all aspects of the project to date

and to formulate a design management plan.

• Tender action

Activities such as tender interviews, tendering and selection are done.

• Pre-start meeting

The pre-start meeting with contractors and consultants (project team)

is held to establish proper working arrangements, roles and

responsibilities, and lines of communication, and to agree procedures

to be followed throughout the contract (project on site

CONSTRUCTION STAGE

• The construction stage commences as soon as the contractor is in

charge of the site.

• It involves the implementation of the design plans envisaged by the

architect/ designer and engineer.

• The contractor deploys the pre-planned schedules and resources and

ensures adequate delivery of the project within proposed budget

plans.

CONSTRUCTION STAGE

•The construction stage involves making use of various resources

ranging from equipment, materials, finance and human resources.

• At this stage, the different organizations and professionals get

involved, including subcontractors, specialist contractors, labour &

material suppliers, consultants, etc. working towards a common and

shared goal.

• Given that this stage entails the actual physical construction of the

project, this stage requires the participation of the entire project

team.

ENGINEERING SERVICES COMMISSIONING STAGE

Commissioning is carried out in four or sometimes five distinct parts:

(a) static testing of engineering services,

(b) dynamic testing of engineering services,

(c) performance testing of engineering services (not always undertaken),

(d) undertaking statutory tests for various authorities, and

(e) client commissioning.

COMPLETION, HANDOVER AND OCCUPATION STAGE

This is the final stage of work executed by the contractors and consultants

prior to acceptance of the facility by the client. They are carried out under the

continued co-ordination and supervision of the project manager, in close

working relationship with the consultants.

.

POST-COMPLETION REVIEW/ PROJECT CLOSE-OUT REPORT STAGE

The objective of this stage is to make a thorough assessment of all elements of

the project and to draw out or feedback, for the benefit of the client, the

project management practice concerned and other team members, any

lessons and conclusions for application to future projects, i.e. what could have

been done differently to mutual advantage

Feasibility Stage

Project Appraisal

Pre-feasibility

ClientArchitectPM Team

Financers

Feasibility stage

Client

ArchitectPM Team

Pre-

Cons

truct

ion Client

Architect

PM Team

Local Authorities

Pre-Construction Stage

Construction Stage

Client Architect PM Team Suppliers

PM TeamClientUser

Construction Stage Handover Stage

Project Life Cycle & Stakeholder Involvement

• Client• Architect• PM Team• Suppliers• Contractors

• Client• PM Team• User

• Client• Architect• PM Team• Local

Authorities

• Client & Owner• Architect• PM Team• Finance advisor

Feasibility Pre-

Construction

ConstructionHandover

* Olander, S. (2003). Stakeholder Management in the Construction Process.

In a real estate project the end user have a strong hand after the

competition of the project rather than any of the stakeholder involved

during the construction or before the construction.

But during the construction the project team as well as the financial

supporter like banks and other company which supply fund to the

project have a very strong hand.

Stakeholder Management in Real Estate Industry

The stakeholder categories identified are:

1) Shareholders2) Employees3) Customer4) Suppliers5) Financiers/creditors6) Local and National authorities7) Social/political organizations8) Land owners9) Environmentalists10) Nearby residents11) Media

Stakeholder Management in Real Estate Industry

The key point need to be follow in a real estate to keep all the

stakeholder satisfy are:-

Customer Satisfaction

• Quality

• Customer Focus

• Leadership

• Involvement of people

• Process approach

• System approach to management

• Continual improvement

• Factual approach to decision making

• Mutually beneficial supplier relationships

CUSTOMER SATISFACTIONCustomer satisfaction is one of the key elements in total quality management (TQM), an approach that emphasizes overall satisfaction through the continuous improvement of products. Understanding the customer’s requirements is essential in ensuring customer satisfaction, and the demand for the construction product must be viewed in relation to the intended use of the facility.

Advantages of Customer Satisfaction• Obtaining competitive advantage in the market place• Boosting effect upon market share• Improving the profitability• Increasing repeated sales• Increasing word-of-mouth recommendation• Measuring national competitiveness• Increasing impact in brand loyalty which has positive impacts on business• Preventing customers to make negative comments and switch the provider• Measuring market performance of the organization

Disadvantages of Consumer Dissatisfaction

•Negative word of mouth complaints

•Reduction of market shares and reduction in profitability

•Possible divestment from industry

•Bad comments and switching the provider

Reasons of Customer Dissatisfaction in Construction Sector

• The possibility of clients stated requirements not sufficiently addressing

their real needs.

• Inadequate research into client needs and satisfaction.

• Unable to fully grasp the issue of client satisfaction largely because of the

absence or unawareness of a mechanism for satisfaction evaluation.

• Inherent poor service

• Out of date solutions like the service once well accepted may not meet

customer expectations

o Due to market competition

o Increase in technology

o Change in the customer tastes

QUALITY MANAGEMENT PRINCIPLES: ISO 9000

Principle 1- Customer Focus

Organizations depend on their customers and therefore should understand current and

future customer needs, should meet customer requirements and strive to exceed

customer expectations.

Principle 2- Leadership

Leaders establish unity of purpose and direction of the organization. They should create

and maintain the internal environment in which people can become fully involved in

achieving the organization's objectives

Principle 3- Involvement of people

People at all levels are the essence of an organization and their full involvement enables

their abilities to be used for the organization's benefit.

Principle 4- Process approach A desired result is achieved more efficiently when activities and related resources are managed as a process.

Principle 5- System approach to management

Identifying, understanding and managing interrelated processes as a system, contributes to

the organization's effectiveness and efficiency in achieving its objectives.

Principle 6- Continual improvementContinual improvement of the organization's overall performance should be a permanent objective of the organization.

Principle 7- Factual approach to decision making

Effective decisions are based on the analysis of data and information.

Principle 8- Mutually beneficial supplier relationships

An organization and its suppliers are interdependent and a mutually beneficial relationship

enhances the ability of both to create value.

Duties and Responsibilities of Stakeholders to the Objective of Building on Quality Assurance

Investor

• Sets the quality to be achieved in design and execution.

• Obtain approvals and law.

• Masters of the implementation by specialty or consultants.

• Resolve nonconformities, defects in service, design deficiencies.

• Ensure completion of the work and reception at the end of warranty.

• Aims to compile a technical construction and owner surrenders.

• Proposed construction expertise to carry out interventions.

Duties and Responsibilities of Stakeholders to the Objective of Building on Quality Assurance

Designer

• States, by project, category of constructions.

• Ensure the projects and details of implementation, the quality of construction.

• Projects have specialists certified auditors, established by the investor and resolves conflicts

raised.

• Prepare specifications, technical instructions for execution, operation, maintenance, repair

and monitoring performance over time.

• Determine stages of completion, participating in their quality control.

• Eliminates quality defects in design.

• Participate in the technical preparation of construction and acceptance of work performed.

Contractor

•Notify the investor of the project inconsistencies.

•Begin construction only for construction projects audited and approved.

•The system achieves its quality management and quality assurance in construction.

•Convene the stakeholders to verify the physical state set.

•Closure of the designer resolved based solutions.

•Notify the construction state inspectorate on technical accidents during construction.

•Fixes its own expense, defects of execution.

•Restore the land used to organize the site to its original state.

•Establishes responsibilities for quality failure.

Building owners

•Made timely maintenance and repairs according to the technical manual.

•Make and keep, to date, the technical construction.

•Implement changes to the building only on verified and approved projects.

• Post utilization out work for stage.

Administrators and the users:

• construction using operating instructions;

• maintenance and repair works are under contract;

• follow the behavior in service;

• notify the State Construction Inspection on technical accidents recorded.

CASE STUDIES

Cosmos Builders Case in Gurgaon

Background of the Project case: - In this case Cosmos Builders and Promoters asked to fix the unit and correct the changes made from agreement or pay a fine. Inspite of having all the sufficient funds the builder was not able to give promised output as per contract where it don’t have any problem with the funds but the quality get poor because of lack in management and the need and requirements of the stakeholders was not taken care in consideration which leads to mismanagement and as a result we got poor quality of work

CASE STUDIES

Internal Stakeholder involved in this conflict are

Stakeholder Role Responsibility Conflict

OwnerStand to win/lose, Accept full authority, provide resource

Ensures that the project has the required resources

Quality of project is not as per contract

Civil Contractor

Construct the structure properly

Quality of work must be attained

No funding is done on time and lack of resources

Structure Consultant

Design of the building is safe

Checking the workmanship attained at site

Workmanship is poor on site

Electrical Contractor

Provide the appropriate material stated

Check the safety and quality of work

Lack of Funds for good purchase

Labor Contractor Provide labor to project

Quality of work done by labor must be as per standard

Delay in payment to supply more labor on time

PMC Manage the project Ensure the quality No such management carried out

Financer To finance the project Provide sufficient funds on time N/A

CASE STUDIES

Stakeholder Need Expectation

OwnerFriendliness, Understanding, Fairness, Control, Information

Quality of work, safe, on budget, flexibility

Civil ContractorClient interpretation, communication, reporting

Time, Quality, Environment friendly

Structure ConsultantClient interpretation, communication, reporting


Electrical ContractorClient interpretation, communication, reporting


Labor Contractor Provide labor to project Quality of work done by labor must be as per standard

PMCCooperation, reporting, control, honesty, Communication

Safety, time, quality, payment

Builder/Financer To finance the project Provide sufficient funds on time

Stakeholder Reason of Failure ExpectationStakeholder Management

Process

OwnerQuality of project is not as per contract


Needs should be taken care during each phase

Civil ContractorNo funding is done on time and lack of resources


Need should be taken care and proper checking of work at time is required

Structure Consultant

Workmanship is poor on site


Updating every issue during planning and construction stage

Electrical Contractor

Lack of Funds for good purchase


Funding and Evaluation on every Phase

Labor ContractorDelay in payment to supply more labor on time

Quality of work done by labor must be as per standard

Strict evaluation and funding must be on time

PMCNo such management carried out


Must be inform all the time for every reason

Builder/Financer N/AProvide sufficient funds on time

Must be aware of every cashflow and ontime payment is required

Stakeholder Management In Infrastructure Project

In an infrastructure project several government as well as private body is involved which have

different policies regarding the land allotment, project execution etc.

In most of the projects like road development, dams, metro people who are using it are not

the biggest stakeholder the person who give his land for the development of that project

become one of the strongest stakeholder and many policies are involve in this to handover

and takeover the land which will be discussed in this chapter.

The main key point on which the infrastructure project based are:-

• Approvals

• Funding

• Clearance

• Site characteristics


In an infrastructure project the main objective is • To give service to the public they are not built to make a large

profit but recovery of the investment is need to be done by these project.

The stakeholder involved in this type of projects are:-Internal Stakeholder

Demand SideClientClient’s EmployeesClient’s CustomerClient TenantClient Supplier

Supply SideArchitectEngineersPrincipal ContractorTrade ContractorMaterial Supplier


External StakeholderPrivate

Local Resident Local LandownerEnvironmentalistConservationist Professional AssociationInterested PartiesMedia

PublicRegulatory Agency Local Government National GovernmentPublic Agencies


Management of stakeholder in an Infrastructure must be done by stage wise which will reduce the risk of the project and it is also important to identify and attend the need of the stakeholder stage wise. In the following report the stages are considers for maintaining the arrangement of stakeholders are:

• Inspection Stage• Feasibility Stage• Strategy Stage• Pre-Construction Stage• Construction Stage• Engineering and Commission Stage• Completion, handover and occupation stage• Post-completion review/ project close-out report stage

Case Study Delhi’s Signature Bridge needs environmental clearance

Project: Signature Bridge, New Delhi

Project Background: - In this case the Delhi government miss to take the approval from

the Environment Clearance board for the project due to which the assumption goes

wrong just because they missed taking approval the whole project suffer and the cost

of the project increased.

We have discussed in the report that to carry out any infrastructure project we must

go stage wise and all the work, permission should be take accordingly but in this case

the client forget to take some necessary approval from the environment department

and in the later stage as small involvement of a local activist the cost of the project get

doubled.

Stakeholder Role Responsibility ImpactGovernment Authority(NGT, DTTDC,SEIAA)

To give the clearance to the project

To ensure no harmful effect of the project.

Delay in the project but results are acceptable

Local Activist (Vikrant Tongad)

To aware the effect of project on environment

To make sure the authority will his work correctly

Delay in project & Project cost increased

Stakeholder Need Expectation

OwnerFriendliness, Understanding, Fairness, Control, Information


Civil ContractorClient interpretation, communication, reporting


Structure ConsultantClient interpretation, communication, reporting


Electrical ContractorClient interpretation, communication, reporting


Labor Contractor Provide labor to project Quality of work done by labor must be as per standard

PMCCooperation, reporting, control, honesty, Communication


Financer To finance the project Provide sufficient funds on time

Government Authorities

Friendliness, Understanding, Fairness, Control, Information

Follow all laws

Stakeholder Expectation Stakeholder Management Process

OwnerQuality of work, safe, on budget, flexibility

Needs should be taken care during each phase

Civil Contractor Time, Quality, Environment friendlyNeed should be taken care and proper checking of work at time is required

Structure Consultant Time, Quality, Environment friendly Updating every issue during planning and construction stage

Electrical Contractor Time, Quality, Environment friendly Funding and Evaluation on every Phase

Labor ContractorQuality of work done by labor must be as per standard

Strict evaluation and funding must be on time

PMC Safety, time, quality, paymentMust be inform all the time for every reason

Financer Provide sufficient funds on timeMust be aware of every cashflow and ontime payment is required

Government Authorities Follow all lawsAll the clearance must be planned appropriately stage wise

Local Groups Project will be profitable Their needs must be account in the preliminary stage

CASE STUDY 2

(IMPLEMETATION OF STAKHOLDER MANAGEMENT TECHNIQUE IN

PROJECT)

Project: Theological College, Norway

Background: T College is a unique tertiary institution that provides a diverse

range of high-quality academic and extra-curricular programs for talented

students from across Europe and around the world. The project was the

construction of a new building to provide new classrooms and facilities for

the college’s theological school. The project was relatively small with the

contract price of $2 million, and the construction stage is the focus of this

case study description.

Identification of Stakeholders

• Client Group

o Project Sponsor

o Director of Finance & Administration

o Director of Theological College

o Students, staffs, wardens

•Project Professionals

o Project Manager

o Architect

o Quantity Surveyor

o Structural Engineer

o Services Engineer

o Other Consultants

•Contractors/Suppliers

o Main contractor

o Sub Contractor

o Laborers

o Suppliers

•External Parties

o Govt. Authorities

o City Council

o Parents and representatives

Stakeholder Power/Interest Grid

• Key player stakeholders (high levels of power and interest)Client groupProject ProfessionalsContractors/Suppliers • Keep-satisfied stakeholders (high level of power but low level of interest):Govt. Authorities

• Keep-informed stakeholders (high level of interest but low level of power):City Council • Minimal-effort stakeholders (low levels of interest and power):Parents & Representatives This power/Interest grid was done for each phase of the project prioritizing the stakeholders on each phase and managing the engagement of different stakeholders.

CONCLUSION

By implementing these management techniques, the project manager and the Director of

Finance & Administration were able to identify the stakeholders and their priority of

engagement in different stages of the project. The result of which was a satisfied project

delivery of all the stakeholders with minimal problems and conflicts and an overall

successful project.

Order of addressing stakeholder in:-

Preconstruction Stage• Client, User• PMC, Architect• Local landowners• Local Resident• Competitors• Consultant• Contractors• Government Authorities• Building Service Engineer • Archaeologists• Environmentalists/ conservationists• Tourists• Others

During Construction Stage• Client, User• PMC, Architect• Consultant• Contractors• Building Service Engineer • Local landowners• Government Authorities• Local Resident• Archaeologists• Environmentalists/ conservationists• Competitors• Tourists• Others

CONCLUSION

Post Construction Stage• Client, User• Competitors• PMC, Architect• Local Resident• Contractors• Consultant• Building Service Engineer • Local landowners• Government Authorities• Archaeologists• Environmentalists/ conservationists• Tourists• Others

SURVEY The survey was conducted by distributing questionnaires to different stakeholders in the construction industry. The questionnaires were prepared for three groups of stakeholders, • Client group questionnaire- distributed to Project Owners, Client Advisor and End User.• Project team group questionnaires- distributed to Project managers, Engineers, Architects, Designers, Main Contractors, Sub-Contractors.• Supply Chain group questionnaires- distributed to Suppliers (Material, Machine, Labour), Distributors and Manufacturers.

SURVEY OBJECTIVE The objective of this survey was to analyze various parameters that affect stakeholders’ contribution for a successful and satisfied project delivery. And to know the factors that are important for stakeholders in order to provide a satisfied project delivery and also to know the factors that lead to poor project execution and failure of project team management (stakeholder management).

RESPONDENT DATA ANALYZATION

Project Manager Importance of Cost, Scope, Time, Quality and Safety

Cost Scope Time Quality Safety0

0.51

1.52

2.53

3.54

4.55

Rating

General Satisfaction attributes for Project Managers

11 attributes where put up and percentage response of the project managers were recorded. Out of

the 11 attributes, 5 attributes recorded 100% perceive as the most important attributes

•Project design contains sufficient details

•There exists tender assessment of quality, and not just for price

• Sufficient time is allowed for tender

• Health & safety procedures are with no incidents

• Strategies for managing and assessing any project risks are in place

Percentage response rate of general satisfaction attributes for Project Managers

Specific Satisfaction attributes for Project Managers

For this, 9 attributes where put up and percentage response of the project managers were recorded. Out

of the 9 attributes, 4 attributes recorded 100% perceive as the most important attributes.

•Ensures that changes are fairly introduced

•Ensures that changes are introduced as early as possible

•Trusts my capability to deliver

• Ensures that there is minimal defects in supply

Architects & DesignersImportance of Cost, Scope, Time, Quality and Safety


0.51

1.52

2.53

3.54

4.55

Rating

General Satisfaction attributes for Architects & Designers

For this, 11 attributes where put up and percentage response were recorded. Out of the 11 attributes, 5

attributes recorded 100% perceive as the most important attributes.


•Each phase of the project is completed on time

•Sufficient time is allowed for tender

•Communication flow is honest, consistent & friendly

•Client interactions are open & friendly

Percentage response rate of general satisfaction attributes for Architects & Designers

Specific Satisfaction attributes for Architects & Designers

For this, 9 attributes where put up and percentage response were recorded. Out of the 9 attributes, 3




•Exhibit open and honest communication

Engineers

Importance of Cost, Scope, Time, Quality and Safety

0

1

2

3

4

5

Cost Scope Time Quality Safety

Rating

General Satisfaction attributes for Engineers

11 attributes where put up and percentage response were recorded. Out of the 11 attributes, 4 attributes

recorded 100% perceive as the most important.


•There exists tender assessment of quality, and not just for price


•Client interactions are open & friendly

Percentage response rate of general satisfaction attributes for Engineers

Specific Satisfaction attributes for Engineers

9 attributes where put up and percentage response of the engineers were recorded. Out of the 9

attributes, 4 attributes recorded 100% perceive as the most important attributes.




•Ensures that there is minimal defects in supply

Contractors Importance of Cost, Scope, Time, Quality and Safety


0.51

1.52

2.53

3.54

4.55

Rating

General Satisfaction attributes for ContractorsUnlike other stakeholders, Contractors believe almost all the attributes listed were essential for their satisfaction for a successful project delivery. Out of the 11 attributes, 8 attributes recorded 100% perceive as the most important attributes.

•Project design contains sufficient details•Payments for the project is made as contractually agreed•Each phase of the project process is completed on time•Sufficient time is allowed for tender•Project schedules are detailed and easy to understand•Health & Safety procedures are with no incidents•Communication flow is honest, consistent & friendly•Client interactions are open & friendly

Percentage response rate of general satisfaction attributes for Contractors

Specific Satisfaction attributes for Contractors

Out of the 9 attributes, 7 attributes recorded 100% perceive as the most important attributes. •Ensures and maintains the ability to make payments•Ensures that changes are fairly introduced•Ensures that changes are introduced as early as possible •Exhibit open and honest communication •Trusts my capability to deliver •Ensures that there is minimal defects in supply •Exhibits the ability to meet my deadlines

Suppliers Importance of Cost, Scope, Time, Quality and Safety


0.51

1.52

2.53

3.54

4.55

Rating

General Satisfaction attributes for Suppliers

6 attributes where put up and percentage response were recorded. Out of the 6 attributes, 3



•Payment for supply is made as regularly


Percentage response rate of general satisfaction attributes for Suppliers

Specific Satisfaction attributes for Suppliers

4 attributes where put up and percentage response of the suppliers were recorded. Out of the 4

attributes, 3 attributes recorded 100% perceive as the most important.




Clients Importance of Cost, Scope, Time, Quality and Safety


0.51

1.52

2.53

3.54

4.55

Rating

General Satisfaction attributes for Clients

9 attributes where put up and percentage response were recorded. Out of the 9 attributes, 6 attributes

recorded 100% perceive as the most important attributes

•Project is carried out within agreed budget

•Project is completed on time


•Response to complaints, changes, or clarifications are quick & productive

•Project is completed as per my requirement

•Quality assurance and quality delivery is achieved

Percentage response rate of general satisfaction attributes for Clients

Specific Satisfaction attributes for Clients

5 attributes where put up and percentage response of the suppliers were recorded. Out of the 5

attributes, 3 attributes recorded 100% perceive as the most important attributes.

•Ensures cost changes are fairly priced

•Ensures cost changes are introduced as early as possible


AHP Analysis

The analytic hierarchy process (AHP) is a structured technique for

organizing and analyzing complex decisions, based mathematics and

psychology.

Decision situations to which the AHP can be applied include:Choice – The selection of one alternative from a given set of alternatives, usually where there are multiple decision criteria involved.Ranking – Putting a set of alternatives in order from most to least desirablePrioritization – Determining the relative merit of members of a set of alternatives, as opposed to selecting a single one or merely ranking themResource allocation – Apportioning resources among a set of alternatives

https://en.wikipedia.org/wiki/MCDA

https://en.wikipedia.org/wiki/Mathematics

https://en.wikipedia.org/wiki/Psychology

https://en.wikipedia.org/wiki/Ranking

https://en.wikipedia.org/wiki/Resource_allocation

AHP Analysis

Benchmarking – Comparing the processes in one's own organization with those of other best-of-breed organizationsQuality management – Dealing with the multidimensional aspects of quality and quality improvementConflict resolution – Settling disputes between parties with apparently incompatible goals or positions

AHP is used just to know the ranking of each stakeholder in different stages on the basis of the survey done and results are produced accordingly.

https://en.wikipedia.org/wiki/Benchmarking

https://en.wikipedia.org/wiki/Quality_management

https://en.wikipedia.org/wiki/Conflict_resolution

AHP Analysis

Client/User Architect PMC Consultant

Contractor Labour

Government

AuthoritiesMedia Local

Resident

Client/User 3.0 3.0 0.3 0.3 5.0 1.0 3.0 5.0Architect 1.0 3.0 3.0 5.0 1.0 3.0 5.0

PMC 3.0 3.0 3.0 1.0 3.0 5.0Consultant 3.0 5.0 5.0 3.0 5.0Contractor 3.0 0.2 3.0 5.0

Labour 5.0 3.0 3.0

Government Authorities 5.0 5.0

Media 1

Local Resident

Least Important 0.2Less Important 0.3

Equally important 1More Important 3Most Important 5

AHP Analysis

45%

32%

23%

ProjectPre-Construction During ConstructionPost Construction

AHP Analysis

23%

18%

13%12%

8%

6%

10%

6% 5%

Pre-Construction

Client/User Architect PMCConsultant Contractor LabourGovernment Authorities Media Local Resident

AHP Analysis

23%

14%

14%14%

9%

11%

7%

5% 4%

ConstructionClient/User Architect PMC Consultant ContractorLabour Government Authorities Media Local Resident

AHP Analysis

23%

13%

13%11%

11%

5%

9%

5%

10%

Post ConstructionClient/User Architect PMC Consultant ContractorLabour Government Authorities Media Local Resident

AHP Analysis

23%

13%

13%11%

11%

5%

9%

5%

10%

Post ConstructionClient/User Architect PMC Consultant ContractorLabour Government Authorities Media Local Resident

AHP Analysis

AHP Analysis

Client/User 24.00%Architect 15.00%

PMC 14.00%Consultant 14.00%Contractor 10.00%

Labour 10.00%Government Authorities 9.00%

Media 6.00%Local Resident 6.00%

Final Result on the basis of the AHP is below. The percentage shows the importance Percentage of stakeholder in the overall project, In this case the data is generated on the basis of the survey data.