Stakeholder Management

in Construction Industry

Girish Kumar Singh

SPA/NS/BEM/612
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.
METHODOLOGY
Definition of research
Literature study
Phase 1 Study on project stakeholder Chapter 1,2,3
management

Identification of stakeholders
Identification of stakeholder
Phase 2 satisfaction attributes Chapter 4 & 5
Stages of construction project
& Engagement of stakeholders

Stakeholder Management in
Real Estate Industry
Phase 3 Stakeholder Management in a
Chapter 6 & 7
Infrastructure Project

Pilot Survey
Case studies
Phase 4 Conclusion Chapter 8,9
 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

Astakeholderis any individual, group or organization

that can affect, be affected by, or perceive itself to be
affected by a programmer.
Stakeholder managementis a critical component to
the successful delivery of any project, programmer or
activity
Two Content Layout with SmartArt

Group A Group B

Task 1 Task 1 First bullet point here

Second bullet point here

Third bullet point here

Task 2 Task 2

Task 3
Investigating the Stakeholder Management in Construction Projects in the Gaza Strip
Prepared by: Salah Hammad 2013
 Type of stakeholder
DirectStakeholders (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, publicutilities, licensingand 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 Government authorities
Public clients Consultation bodies such as district board
Architect Town planning board
PMC Media
Structural engineer Institutional Forces/Nationalized Industries
Building service engineer Local residents/community
Main contractor Local landowners
Sub-contractors
Laborers
Suppliers
Owner
User Archaeologists
2. STAKEHOLDER THEORY

The stakeholder theory literature can be seen as:

Normative Theory
Analytic Theory
o Descriptive
o Instrumental Approach
Stakeholder Salience Theory
Critical Realist Stakeholder Theory

Necessary
Type A Type B
Contingent
Explicit/implicit Implicit unrecognized
recognized The general public,
Compati Shareholders, Companies connected
ble Top management through
Partners Common trade association

Type D Type E
Explicit/implicit No contract
Incompati recognized Aggrieved or criminal
Trade unions, members of the public,
ble Low-level employees, Some NGOs
Government, Customers,
Creditors,
Some NGOs
 Critical Realist Stakeholder Theory

Power Grid
Necessary
Type A Type B
Contingent
Explicit/implicit Implicit
recognized unrecognized
Compati Shareholders, The general public,
ble Top management Companies connected
Partners through
Common trade
association
Type D Type E
Explicit/implicit No contract
Incompati
recognized Aggrieved or criminal
ble Trade unions, members of the
Low-level employees, public,
Government, Some NGOs
Customers,
Creditors,
Some NGOs
3. PROJECT STAKEHOLDER MANAGEMET
(An overview of Project Stakeholder Management, PMBOK 5th
Edition)

Project Stakeholder Management Processes

1. Indentifying Stakeholders
2. Planning Stakeholder Management
3. Managing Stakeholder Engagement
4. Controlling Stakeholder Engagement
Identify stakeholder: Inputs, Tools & Techniques, and Outputs

Plan Stakeholder Management: Inputs, Tools &

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

Control Stakeholder Engagement: Inputs, Tools &

Techniques, and Outputs
KEY STAKEHOLDERS IN CONSTRUCTION
PROJECTS
CUSTOMER/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
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
Control: Customers need to feel they have an impact
on the way things turn out. The service providers 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
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
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.
Clients objective: The engineering teams needs to
understand the clients 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
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


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 STAGE
The 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?
Clients Internal Team
Project sponsor
Clients 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).
Clients 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 clients 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
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 Pre-Construction Stage

Pre-Construction
Client
Client
Architect
Client
Architect
PM
PM Team
Team
Pre-feasibility
Pre-feasibility

Financers
Financers
Architect
Project
Project Appraisal
Appraisal

Client
Client PM Team
Feasibility
Feasibility stage
stage
Architect
Architect Local
PM
PM Team
Team
Authorities

Construction Stage Handover Stage

Construction
Construction
Stage
Stage PM Team

Client
Client
Client Architect
Architect PM
PM Team
Team Suppliers
Suppliers User
Project Life Cycle & Stakeholder Involvement
Client & Owner Client
Architect Architect
PM Team PM Team
Finance advisor Local Authorities

Pre-
Feasibility Construction

Handover Construction

Client Client
PM Team Architect
User PM Team
Suppliers
Contractors

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

 Stakeholder Management in Real Estate
Industry

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) Shareholders
2) Employees
3) Customer
4) Suppliers
5) Financiers/creditors
6) Local and National authorities
7) Social/political organizations
8) Land owners
9) Environmentalists
10) Nearby residents
11) Media
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 SATISFACTION
Customer 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 customers 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
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
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 improvement
Continual 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
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.
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 dont 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
Stand to win/lose, Accept full Ensures that the project Quality of project is not as
Owner
authority, provide resource has the required resources per contract

Construct the structure Quality of work must be No funding is done on time

Civil Contractor
properly attained and lack of resources

Structure Checking the workmanship Workmanship is poor on

Design of the building is safe
Consultant attained at site site

Electrical Provide the appropriate Check the safety and Lack of Funds for good
Contractor material stated quality of work purchase
Quality of work done by
Delay in payment to supply
Labor Contractor Provide labor to project labor must be as per
more labor on time
standard
No such management
PMC Manage the project Ensure the quality
carried out
Provide sufficient funds on
Financer To finance the project N/A
 CASE STUDIES

Stakeholder Need Expectation

Friendliness, Understanding, Fairness, Quality of work, safe, on budget,
Owner
Control, Information flexibility
Client interpretation, communication,
Civil Contractor Time, Quality, Environment friendly
reporting
Client interpretation, communication,
Structure Consultant Time, Quality, Environment friendly
reporting
Client interpretation, communication,
Electrical Contractor Time, Quality, Environment friendly
reporting
Quality of work done by labor must
Labor Contractor Provide labor to project
be as per standard

Cooperation, reporting, control,

PMC Safety, time, quality, payment
honesty, Communication

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


Stakeholder Reason of Failure
Quality of project is not as
Owner
per contract
No funding is done on time
Civil Contractor
and lack of resources
Structure Consultant Workmanship is poor on site
Lack of Funds for good
Electrical Contractor
purchase
Delay in payment to supply
Labor Contractor
more labor on time
No such management
PMC
carried out
Builder/Financer N/A
Expectation
Quality of work, safe, on
budget, flexibility
Time, Quality, Environment
friendly
Time, Quality, Environment
friendly
Time, Quality, Environment
friendly
Quality of work done by
labor must be as per
standard
Safety, time, quality,
payment
Provide sufficient funds on
time
Stakeholder Management
Process
Needs should be taken care
during each phase
Need should be taken care
and proper checking of work
at time is required
Updating every issue during
planning and construction
stage
Funding and Evaluation on
every Phase
Strict evaluation and funding
must be on time
Must be inform all the time
for every reason
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
Stakeholder Management In Infrastructure Project

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 Side Supply Side
Client Architect
Clients Employees Engineers
Clients Customer Principal Contractor
Client Tenant Trade Contractor
Client Supplier Material Supplier
 Stakeholder Management In Infrastructure Project

External Stakeholder
Private Public
Local Resident Regulatory Agency
Local Landowner Local Government
Environmentalist National Government
Conservationist Public Agencies
Professional Association
Interested Parties
Media
 Stakeholder Management In Infrastructure Project

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 Delhis 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 Impact
Government To give the clearance to To ensure no harmful Delay in the project
Authority but results are
the project effect of the project.
(NGT, DTTDC, acceptable
SEIAA)
Local Activist To aware the effect of To make sure the authority Delay in project &
(Vikrant Tongad) project on environment will his work correctly Project cost
increased
 Stakeholder Need Expectation
Friendliness, Understanding, Fairness, Control, Quality of work, safe, on budget,
Owner
Information flexibility

Civil Contractor Client interpretation, communication, reporting Time, Quality, Environment friendly

Structure Consultant Client interpretation, communication, reporting Time, Quality, Environment friendly

Electrical Contractor Client interpretation, communication, reporting Time, Quality, Environment friendly

Quality of work done by labor must be as

Labor Contractor Provide labor to project
per standard

Cooperation, reporting, control, honesty,

PMC Safety, time, quality, payment
Communication

Financer To finance the project Provide sufficient funds on time

Government Friendliness, Understanding, Fairness, Control,

Follow all laws
Authorities Information
 Stakeholder Expectation Stakeholder Management Process

Quality of work, safe, on budget, Needs should be taken care during each
Owner
flexibility phase

Need should be taken care and proper

Civil Contractor Time, Quality, Environment friendly
checking of work at time is required

Updating every issue during planning and

Structure Consultant Time, Quality, Environment friendly
construction stage
Funding and Evaluation on every Phase
Electrical Contractor Time, Quality, Environment friendly

Quality of work done by labor must be as Strict evaluation and funding must be on
Labor Contractor time
per standard
Must be inform all the time for every
PMC Safety, time, quality, payment
reason
Must be aware of every cashflow and
Financer Provide sufficient funds on time ontime payment is required

All the clearance must be planned

Government Authorities Follow all laws
appropriately stage wise

Their needs must be account in the

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
colleges 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

Project Professionals
Client Group
o Project Manager
o Project Sponsor
o Architect
o Director of Finance & Administration
o Quantity Surveyor
o Director of Theological College
o Structural Engineer
o Students, staffs, wardens
o Services Engineer
o Other Consultants
Contractors/Suppliers External Parties
o Main contractor o Govt. Authorities
o Sub Contractor o City Council
o Laborers o Parents and representatives
o Suppliers
Stakeholder Power/Interest Grid

Key player stakeholders (high levels of power and

interest)
Client group
Project Professionals
Contractors/Suppliers

Keep-satisfied stakeholders (high level of power but
 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 During Construction Stage

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

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 & Designers
Importance of Cost, Scope, Time, Quality and Safety

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.
Project design contains sufficient details
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 attributes recorded 100% perceive as the most important
attributes.
Ensures that changes are fairly introduced
Ensures that changes are introduced as early as possible
Exhibit open and honest communication
Engineers
Importance of Cost, Scope, Time, Quality and Safety

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.
Project design contains sufficient details
There exists tender assessment of quality, and not just for price
Communication flow is honest, consistent & friendly
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 changes are fairly introduced
Ensures that changes are introduced as early as possible
Exhibit open and honest communication
Ensures that there is minimal defects in supply
Contractors
Importance of Cost, Scope, Time, Quality and Safety

General Satisfaction attributes for Contractors

Unlike 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

General Satisfaction attributes for Suppliers

6 attributes where put up and percentage response were recorded. Out of the 6
attributes, 3 attributes recorded 100% perceive as the most important attributes.
Project design contains sufficient details
Payment for supply is made as regularly
Communication flow is honest, consistent & friendly
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.
Ensures that changes are fairly introduced
Ensures that changes are introduced as early as possible
Exhibit open and honest communication
Clients
Importance of Cost, Scope, Time, Quality and Safety

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
Communication flow is honest, consistent & friendly
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
Exhibit open and honest communication
AHP Analysis
Theanalytic hierarchy process(AHP) is a structured
technique for organizing and analyzingcomplex decisions,
based mathematicsandpsychology.

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 desirable
Prioritization Determining the relative merit of members
of a set of alternatives, as opposed to selecting a single
one or merely ranking them
Resource allocation Apportioning resources among a set
AHP Analysis

Benchmarking Comparing the processes in one's own

organization with those of other best-of-breed
organizations
Quality management Dealing with the multidimensional
aspects of quality and quality improvement
Conflict 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.
AHP Analysis

Government Local
Client/User Architect PMC Consultant Contractor Labour Media
Authorities Resident

Client/User 3.0 3.0 0.3 0.3 5.0 1.0 3.0 5.0

Architect 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 5.0

Consultant 3.0 5.0 5.0 3.0 5.0

Contractor 3.0 0.2 3.0 5.0

Labour 5.0 3.0 3.0

Government
5.0 5.0
Authorities

Media 1

Local Resident

Least Important 0.2

Less Important 0.3
Equally important 1
More Important 3
Most Important 5
AHP Analysis

Project
Pre-Construction During Construction
Post Construction

23%

45%

32%
AHP Analysis

Pre-Construction

Client/User Architect PMC

Consultant Contractor Labour
Government Authorities Media Local Resident

5%
6%
23%
8%

6%

8%
18%

12%
13%
AHP Analysis

Construction
Client/User Architect PMC Consultant Contractor Labour
Government Authorities Media Local Resident

4%
5%
7% 23%

11%

14%
9%

14% 14%
AHP Analysis

Post Construction
Client/User Architect PMC Consultant Contractor Labour
Government Authorities Media Local Resident

10%

5% 23%

9%

5%
13%

11%

13%
11%
AHP Analysis

Post Construction
Client/User Architect PMC Consultant Contractor Labour
Government Authorities Media Local Resident

10%

5% 23%

9%

5%
13%

11%

13%
11%
AHP Analysis
AHP Analysis

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.

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%