Critical Success Factors for Managing Stakeholders in Construction Projects in Australia

Research Theory and Practice
ENGG 405
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Preliminary Report
Critical success factors for managing stakeholder in Construction projects in Australia

Introduction
Construction projects influence all cities, towns, states and provinces when the work of
projects goes on. However, construction issues vary from different jurisdictions and various
stakeholders are associated with the construction process. Stakeholder relationship management
in construction projects involves the basic understanding of the roles of the each of the
stakeholders (Molwus, Erdogan & Ogunlana, 2017, p.427). The project manager of the
construction project must understand the role of different entities which should work together on
behalf of the clients and the industries. In this paper, the research topic is selected as the critical
success factors in managing the stakeholders of the construction projects. The discipline of the
research is the construction project and the researcher will use the facts of various stakeholders
so that the researcher can explore the relative significance and groupings of the critical factors. In
addition, in Australia, in construction projects, stakeholders' conflict interests sometimes affect
the result of the restoration projects. If the stakeholders of the construction projects do not work
together smoothly, the success of the construction projects will be at stake. Moreover,
construction projects in Australia undertaken are critical and it can influence the output of the
economy of overall Australia. Project failures, as well as poor delivery in the construction
projects in Australia, have been provided several factors; these factors are the time overruns,
cost, poor quality, poor and late payment and scope change (Rosemann & Vom, 2015, p.106).
Success factors in construction projects depend on the stakeholders’ needs and satisfaction.
Background and Need for the Research
In Australia, the construction industry does not have the good record of stakeholder
management owing to the uncertainty and complex nature of the construction projects (Zheng et

al. 2016, p.1216). Stakeholders' management has some basic issues like project managers do not
have clear objectives, poor engagement of the stakeholders, the difficulty of understanding the
invisible stakeholders and communication issues among the stakeholders. Therefore, the project
manager must solve these issues as the project team knows the critical success factors to manage
the stakeholders (Tarhini, Ammar & Tarhini, 2015, p.25). Without having a good understanding
of the stakeholders of the construction projects, which are basically clients, contractors,
government and unions critical success factors (CSF) approach is used.
Critical success factors are the area where the results will ensure the competitive
performance of the organisation (Xia et al. 2018, p.711). If the CSF is satisfactory, then the
success of the project can be ensured and the stakeholders of the organisation do the needful in
the managerial planning to practice the effectiveness of the organisation. CSF can develop the
performance of the managerial bodies where the management focuses more to associate the
stakeholders of the construction project. CSF can also ensure the construction process does not
stop and it manages successfully the project stakeholders (Osei & Chan, 2015, p.1337).
In this research, Australia's construction projects which have been done in the last few
years will be evaluated. It has been noted that Australia's construction projects have not been
completed on time due to the poor management of the stakeholders. The project managers fail to
provide the deliverables on time and the government does not provide the help in time for the
project team. In construction projects, long-term performance depends on the decisions of the
stakeholders’ communication and the issue of the project construction depends on the
relationship between the stakeholders and the project (Yang & Shen, 2014, p.041).