Stakeholder Management

1. Stakeholder Management in Construction Industry Girish Kumar Singh SPA/NS/BEM/612

2. 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.

3. 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.

4. 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.

5. 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.

6. METHODOLOGY • Definition of research • Literature study • Study on project stakeholder management Chapter 1,2,3 Phase 1 • Identification of stakeholders • Identification of stakeholder • satisfaction attributes • Stages of construction project & Engagement of stakeholders Phase 2 Chapter 4 & 5 • Stakeholder Management in Real Estate Industry • Stakeholder Management in a Infrastructure Project Chapter 6 & 7 Phase 3 • Pilot Survey • Case studies • Conclusion Phase 4 Chapter 8,9

7. 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)

8. 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.

9. 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

10. Two Content Layout with SmartArt • 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

11. 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

12. TYPES OF STAKEHOLDERS Internal Stakeholders External Stakeholders • 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 • Private clients • Public clients • Architect • PMC • Structural engineer • Building service engineer • Main contractor • Sub-contractors • Laborers • Suppliers • Owner • User

13. 2. STAKEHOLDER THEORY • The stakeholder theory literature can be seen as: • Normative Theory • Analytic Theory • Descriptive • Instrumental Approach • Stakeholder Salience Theory

14. Critical Realist Stakeholder Theory Necessary Contingent Compatible Incompatible

15. Critical Realist Stakeholder Theory Power Grid Necessary Contingent Compatible Incompatible

16. 3. PROJECT STAKEHOLDER MANAGEMET (An overview of Project Stakeholder Management, PMBOK 5th Edition) Project Stakeholder Management Processes Indentifying Stakeholders Planning Stakeholder Management Managing Stakeholder Engagement Controlling Stakeholder Engagement

17. Identify stakeholder: Inputs, Tools & Techniques, and Outputs Plan Stakeholder Management: Inputs, Tools & Techniques, and Outputs

18. Manage Stakeholder Engagement: Inputs, Tools & Techniques, and Outputs Control Stakeholder Engagement: Inputs, Tools & Techniques, and Outputs

19. 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.

20. 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.

21. 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.

22. Expectations of Customer/Client • Completion on Time • Quality of work • On Budget • Safe • Flexibility

23. 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.

24. 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.

25. 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.

26. 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.

27. 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.

28. 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 projectparticipants.

29. 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.

30. 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.

31. 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

32. 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.

33. 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.

34. 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.

35. 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.

36. 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.

37. 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.

38. 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

39. 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.

40. 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).

41. 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.

42. 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)

43. 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

44. 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.

45. 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.

46. 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

47. 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.

48. 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 sharedgoal. • Given that this stage entails the actual physical construction of the project, this stage requires the participation of the entire project team.

49. 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.

50. 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. .