Stakeholder management In Construction Industry

Stakeholder Management
Girish Kumar Singh
SPA/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 A
Explicit/implicit recognized
Shareholders,
Top management
Partners
Type B
Implicit unrecognized
The general public,
Companies connected through
Common trade association
Type D
Explicit/implicit recognized
Trade unions,
Low-level employees,
Government, Customers,
Creditors,
Some NGOs
Type E
No contract
Aggrieved or criminal
members of the public,
Some NGOs
Necessary Contingent
Critical Realist Stakeholder Theory
Compatible
Incompatible

Type A
Explicit/implicit
recognized
Shareholders,
Top management
Partners
Type B
Implicit unrecognized
The general public,
Companies connected
through
Common trade association
Type D
Explicit/implicit
recognized
Trade unions,
Low-level employees,
Government, Customers,
Creditors,
Some NGOs
Type E
No contract
Aggrieved or criminal
members 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 Stakeholders
2. Planning Stakeholder Management
3. Managing Stakeholder Engagement
4. 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 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 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 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?
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
Client
Architect
PM Team
Financers
Feasibility stage
Client
Architect
PM Team
Pre-Construction Stage
Construction
Stage
Client Architect PM Team Suppliers
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) 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
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 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 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 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 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
Owner
Stand 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
N/A

CASE STUDIES
Stakeholder Need Expectation
Owner
Friendliness, Understanding, Fairness,
Control, Information
Quality of work, safe, on budget,
flexibility
Civil Contractor
Client interpretation, communication,
reporting
Time, Quality, Environment friendly
Structure Consultant
reporting
Electrical Contractor
reporting
Quality of work done by labor must
be as per standard
PMC
Cooperation, reporting, control,
honesty, Communication
Safety, time, quality, payment
Builder/Financer To finance the project Provide sufficient funds on time

Stakeholder Reason of Failure Expectation
Stakeholder Management
Process
Owner
Quality of project is not as
per contract
Quality of work, safe, on
budget, flexibility
Needs should be taken care
during each phase
Civil Contractor
No funding is done on time
and lack of resources
Time, Quality, Environment
friendly
Need should be taken care
and proper checking of work
at time is required
Structure Consultant Workmanship is poor on site
friendly
Updating every issue during
planning and construction
stage
Electrical Contractor
Lack of Funds for good
purchase
friendly
Funding and Evaluation on
every Phase
Labor Contractor
Delay 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
PMC
No such management
carried out
Safety, time, quality,
payment
Must be inform all the time
for every reason
Builder/Financer N/A
Provide 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 Side
Client
Client’s Employees
Client’s Customer
Client Tenant
Client Supplier
Supply Side
Architect
Engineers
Principal Contractor
Trade Contractor
Material Supplier

External Stakeholder
Private
Local Resident
Local Landowner
Environmentalist
Conservationist
Professional Association
Interested Parties
Media
Public
Regulatory Agency
Local Government
National Government
Public 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 Impact
Government
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
Owner
Friendliness, Understanding, Fairness, Control,
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
per standard
PMC
Cooperation, reporting, control, honesty,
Communication
Safety, time, quality, payment
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
Owner
flexibility
Needs should be taken care during each
phase
Civil Contractor Time, Quality, Environment friendly
Need 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 Contractor
Quality of work done by labor must be as
per standard
Strict evaluation and funding must be on
time
PMC Safety, time, quality, payment
Must be inform all the time for every
reason
Financer Provide sufficient funds on time
Must be aware of every cashflow and
ontime payment is required
Government Authorities Follow all laws
All the clearance must be planned
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 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 group
Project Professionals
Contractors/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 Resident
• Competitors
• Consultant
• Contractors
• Government Authorities
• Building Service Engineer
• Archaeologists
• Environmentalists/ conservationists
• Tourists
• Others
During Construction Stage
• Client, User
• PMC, Architect
• Consultant
• Contractors
• Local Resident
• Archaeologists
• Competitors
• Tourists
• Others

CONCLUSION
Post Construction Stage
• Client, User
• Competitors
• PMC, Architect
• Local Resident
• Contractors
• Consultant
• Archaeologists
• 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
0
1
2
3
4
5
Cost Scope Time Quality Safety
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 & Designers
0
1
2
3
4
5
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
0
1
2
3
4
5
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

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
0
1
2
3
4
5
Rating
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.
•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

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
•Trusts my capability to deliver
•Ensures that there is minimal defects in supply
•Exhibits the ability to meet my deadlines

Suppliers
0
1
2
3
4
5
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
0
1
2
3
4
5
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 andpsychology.
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 of
alternatives

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
Client/User
Architect
PMC
Consultant
Contractor
Labour
Government
Authorities
Media
LocalResident
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
Authorities
5.0 5.0
Media 1
Local Resident
Least Important 0.2
Less Important 0.3
Equally important 1
More Important 3
Most Important 5

AHP Analysis
45%
32%
23%
PROJECT
Pre-Construction During Construction
Post Construction

AHP Analysis
23%
18%
13%
12%
9%
6%
10%
6%
5%
PRE-CONSTRUCTION
Client/User Architect PMC
Consultant Contractor Labour
Government Authorities Media Local Resident

AHP Analysis
23%
14%
14%14%
9%
11%
7%
5%
3%
CONSTRUCTION

AHP Analysis
23%
13%
13%
11%
11%
5%
9%
5%
10%
POST CONSTRUCTION

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.

Stakeholder management In Construction Industry

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