External Stakeholder Analysis in Construction Project Management

Abstract: The planning and construction of a facility can affect several interests. Positive effects are, for instance, better communications, better housing and a higher standard of living. However, construction projects inevitably bring varying degrees of deterioration and change at the local level, not least at the construction site. Representatives of these interests are referred to as the project's stakeholders. A project stakeholder can be defined as a person (or group of people) who has a vested interest in the success of a project and the environment within which the project operates. Vested interest is defined as having possession of one or more of the stakeholder attributes of power, legitimacy or urgency for their claims upon the project. There are essentially two categories of stakeholders: internal, who are those actively involved in project execution; and external, who are those affected by the project. The challenge for the project manager is then to plan and implement the project in a manner that fulfils as many external stakeholder needs and concerns as possible without compromising the purpose of the project. The role of the project manager must involve not just an understanding of the technical process, but also an understanding of the links between technique, the environment, the community and the people in it. The purpose of the present research project is to contribute to, and increase, knowledge concerning external stakeholders for construction projects, and to develop methods and tools for the analysis of the influence of external stakeholders. From the perspective of the developer and the project manager, the external stakeholder analysis must be conducted with respect to the project's purpose. The aim must be to complete the project according to the requirements of the project owner. The challenge is then to find trade-offs that fulfil as many external stakeholder needs and concerns as possible. The external stakeholder analysis should provide a basis for forthcoming project decisions. One clear reason for controversy and conflict is that decisions on a course of action for the project were made without analysing the consequences for external stakeholders. The result of this was that the project manager was not prepared for the possible conflict that might arise, and thus had no plan of how to resolve or handle them.