ABSTRACT
The structure of the Nigerian construction industry is very complex in nature and consists of a wide range of different parties. Despite involvement of all stakeholders on construction projects in the study area projects still encounter challenges in terms of performance due to poor stakeholder management. The aim of this study is to analyze stakeholder management in construction projects in Abuja, with the view to improve construction projects performance. This study identified and examined barriers to stakeholder management in construction projects, determined stakeholder management critical factors influencing successful delivery of construction projects, and examined tools used in stakeholder management and also analyses the response strategies to stakeholder dispute. The study employed a mixed method (qualitative and quantitative) research design approach through semi- structured interviews and questionnaire. 30 construction professionals interviewed were purposively selected based on their experience. Content analysis was used to analyze information gotten from them. The study identified 25 barriers affecting stakeholder management and 14 critical factors influencing successful stakeholder management. 4 tools used in stakeholder management were mentioned and 23 dispute resolution methods were identified through interviews carried out. CSFs, barriers and tools frequency were ranked using relative importance index method (RII). Results from the interviews and the questionnaires were combined and “Poor knowledge of stakeholder management procedure” and “lack of proper stakeholder management procedures” were the more significant barriers affecting stakeholder management. Effective Communication emerged the highest ranked critical factor for successful stakeholder management. The study further posited that project meetings and communication planning are the most common techniques of stakeholder management, while stakeholder analysis and mapping were the most effective. Also dialoguing and negotiating are the major response strategies to stakeholder disputes. The study concluded that despite the informational knowledge and responses concerning the importance of effective SM, there is almost no SM implementation process as prior presented in related literature. Therefore, there is need to pay special attention to the barriers and the study recommends appropriate strategies one of which is appropriate stakeholder analysis and engagement process within consulting project management firms managing project stakeholders.
CHAPTER ONE
1.0 INTRODUCTION
1.1 Background to the Study
The construction industry exists as a significant contributor to any nation’s social and financial growth. Aside from the industry’s capability of work creation, different accomplishments endeavoured in construction are relevant to cultivating viable connections and improving and supporting economic sustenance. (Adeagbo, 2014).
The arrangement of the Nigerian construction industry is really multifaceted also contains an extensive variety of participants; different forms of procurement systems, different clients and contractors. The construction industry consists of building, civil and heavy engineering construction. The parties to a project are classified as the public and private customers, sub- contractors and main contractors, transnational businesses and sole proprietorships, minimum technology companies and sophisticated authorities, civil engineers and builders as well as an entire variety of construction experts associated in the industry. Construction works are usually done on a project premise and may be in an organisation or part of a construction scheme (Adamu & Kolawole, 2011).
Every construction work maintains uniqueness, and the capacity to gauge success as a by-result or by-measure is likewise project specific as well. In any case, a good outcome and execution for any project is estimated by a comparison between the outcomes (with the goals) and achievement standards like time, cost and quality (Project Management Institute, 2017). These project goals are exclusively dependent on the interests of the stakeholders whether predominantly involved in the project or otherwise (Atkinson, 1999).
In order to advance the conduct of the industry, several project management tools have been adopted in the industry, one of such is stakeholder management. Stakeholders comprise of all participants of the project team as well as all involved bodies which are either internal or external to the organisation. As stated by the Association for Project Management (APM, 2017), Stakeholder management is the methodical recognition, examination, development as well as execution of activities aimed towards engaging with stakeholders.
The stakeholder management concept was adopted in project management by Cleland (1986) and was categorized into external and internal. Examples of internal stakeholders are the project sponsors, project group members and project managers based on their level of participation in the various parts of the project. However, external stakeholders are known as clients, contractors as well as connected state mechanisms (Project Management Institute, 2017). Different stakeholders may have competing expectations that might create struggles in the development of the project. They may likewise impose some forms of impact on the project, its output, as well as the project team so as to attain a range of results that fulfil tactical commercial goals or supplementary requirements. (Dagli, 2018) Ajayi et al. (2010) recognized dissimilarity amongst project participants as a significant cause of project ineptitude in Nigeria. Molwus (2014) developed a framework for stakeholder management in construction projects with data from projects found within the United Kingdom.
This study looked into the tools used in stakeholder management, identify and assess barriers to stakeholder management in construction developments in Abuja, Nigeria. This research work also determined factors influencing the stakeholder management in construction projects and suggests strategies of managing stakeholders in order to accomplish successful project objectives.
1.2 Statement of the Problem
Success is the ultimate aim of every construction work and stakeholder management remains important in the successful delivery of construction projects. Effective conclusion of construction projects depends on reassuring the confidence of participants all through the life span of the construction work (Toor & Ogunlana, 2009). Since construction projects are multifaceted and filled with uncertainties, managing the stakeholders is a challenging task. It is crucial to recognise adequate tactics and methods of stakeholder management in order to accomplish project objectives. In Nigeria, implementing a plan for a project is not an assurance of project success. Quite a lot of projects still become unsuccessful once stakeholders are inappropriately managed. On the word of Abdu-Lawan (2016), projects stayed deferred for a relatively extensive period as a result of unsolved disagreements concerning two vital stakeholders involved in the project. Disagreements happening on the projects can be as a result of a number of stakeholders requiring the understanding of crucial factors for stakeholder management as well as obstacles to stakeholder management. The work effectiveness of the stakeholders is negatively impacted by the clashes as well as disagreement on site.
According to Wang &Huang (2006), effective relationships among key stakeholders assist in achieving successful delivery of any construction project. Though, stakeholders may be involved at the commencement of every construction project, without proper management, success cannot be achieved. Managing construction project stakeholders has been a challenge globally (Winch, 2010). Rowlinson et al. (2010) affirmed that the matter of stakeholder management was scantly considered; the client was accustomed to making decisions on development instead of referring extensively to the major players and stakeholder management and relationship management were still in their infancy in the construction industry.
El-Gohary et al.(2006) stated that stakeholder management has been rarely incorporated in the construction sector. The construction industry has importunately recorded a pitiable amount of stakeholder management to date compared to other sectors (Chinyio & Olomolaiye, 2010). Onarinde (2011) highlighted that the construction industry of Nigeria is yet to completely gain from the advantages of stakeholder management on site. The negative effect of stakeholders’ actions is one of the key difficulties being experienced by construction projects in terms of performance and this, if left unmanaged, turns out to be a threat (Forsman, 2017).
What can be deduced is that stakeholder management in Nigeria is lacking in so many ways and this may be due to disagreements and negligence on the part of some of these stakeholders (Chinyio & Olomolaiye, 2010). Construction projects within Abuja are not yet free from repeated occurrence of obstructions due to poor stakeholder management. This study thus asserts that there are looming barriers that need to be straightened in so doing suggesting strategies to enable project success through awareness of critical issues associated with the stakeholder management.
1.3 Research Questions
This study’s research questions are:
i. What remain the barriers affecting stakeholder management in construction project development?
ii. What tools and techniques are currently being used for stakeholder management in construction projects in Abuja?
iii. What are the factors influencing stakeholder management in construction projects iv. What are the response strategies necessary to manage stakeholders’ disputes?
1.4 Aim and Objectives
The aim of the study is to assess stakeholder management in construction projects in Abuja, with
a view to improve projects’ performance delivery. The following are the objectives pursued:
i. To assess the barriers to stakeholder management.
ii. To examine various tools being used for stakeholder management within projects in the construction industry.
iii. To examine critical factors influencing the stakeholder management successful delivery of construction projects.
iv. To assess strategies for managing stakeholder disputes.
1.5 Justification for the Study
Over the years studies have been carried out concerning stakeholder management. Dominic et al. (2015) carried out research on combative concerns on improper stakeholder management in certain main road construction projects in Anambra State, Nigeria. Oyeyipo et al. (2019) took a more optimistic route in researching factors promoting stakeholder management in the built environment.
Despite various researches conducted on stakeholder management, in practical sense, projects in the study area still experience instability in the stakeholder management process. Therefore, there is a need to investigate further on stakeholder management in Nigeria context.
This study would contribute to the body of knowledge in addressing the influence of stakeholder management on construction project delivery. It would serve as a guide to construction professionals (architects, quantity surveyors, engineers, project manager) on effective stakeholder management and engagement. The findings of this study would assist the government and construction experts concerning methods of stakeholder management and appropriate tools and the influence of the concept on project delivery from planning stage to handing over stage.
Identifying stakeholder management is a crucial part of project management that promotes the appropriate utilization of the concept that assist project managers and firms to ensure the delivery of projects that are suitable and gratifying to the stakeholders. This study would assist in identifying the tools and techniques applied in stakeholder management within the Nigerian Construction Industry and the key barriers affecting the professionals practicing it. The results of this study are going to serve as a measure for encouraging additional implementation as well as tackling the difficulties recognised.
1.6 Scope of the Study This study focused exclusively on building and civil engineering construction projects within Abuja with exception of heavy engineering, oil and gas. The choice of the study area is based on the fact that Abuja is among the cosmopolitan areas in Nigeria with an increasing array of experts in the construction industry and has numerous existing building developments. The location is also selected because of its proximity and ease of access for the researcher. The research emphasis is on the construction practitioners within the consulting project management firms. Only internal stakeholders such as the project team, the administration and managers were considered because they participate directly in the project executions as opposed to external stakeholders.
This material content is developed to serve as a GUIDE for students to conduct academic research
ANALYSIS OF STAKEHOLDER MANAGEMENT IN PUBLIC CONSTRUCTION PROJECT DELIVERY IN ABUJA, NIGERIA
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