Stakeholder Engagement in Construction Projects

This assignment focuses on the crucial role of stakeholder engagement in successful construction projects. It delves into the complexities of identifying, analyzing, and engaging with various stakeholders, including clients, contractors, suppliers, communities, and regulatory bodies. The assignment emphasizes the importance of effective communication, collaboration, and conflict resolution strategies to ensure project success. It also explores best practices and tools for stakeholder management in the construction industry.

Running head: RESEARCH PROPOSAL
Research proposal
Name of the student:
Name of the University:
Author’s note:

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Table of Contents
1.0 Introduction:..............................................................................................................................3
1.1. Background of the study...........................................................................................................3
1.2 Research aim:.............................................................................................................................4
1.3 Research objectives:..................................................................................................................4
1.4 Research questions:...................................................................................................................4
1.5. Problem statement:...................................................................................................................5
1.6 Structure of the research paper:.................................................................................................5
2.0 Literature review:.......................................................................................................................7
2.1 Socio- economic conditions of South Africa:............................................................................7
2.2 Project and Project management...............................................................................................8
2.3 Municipality or public projects..................................................................................................8
2.4 Stakeholder management:..........................................................................................................9
2.5 Role of stakeholders in success or failure of a project............................................................10
2.6 Types of project stakeholders:.................................................................................................10
2.7 Stakeholder identification and analysis:..................................................................................12
2.8 Stakeholder engagement:.........................................................................................................13
2.9 Stakeholder engagement in South Africa:...............................................................................14
3.0 Research methodology:...........................................................................................................15

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3.1 Research philosophy:...............................................................................................................15
3.2 Research approach:..................................................................................................................15
3.3 Research design:......................................................................................................................16
3.4 Data collection process:...........................................................................................................17
3.5 Sampling method:....................................................................................................................17
3.6 Data analysis plan:...................................................................................................................18
3.7 Ethical consideration:..............................................................................................................18
3.8 Limitations of the study:..........................................................................................................19
4.0 Time scale or Gantt chart:........................................................................................................20
References:....................................................................................................................................21

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1.0 Introduction:
This chapter provides a brief introduction and outline of the research study. The research
background and the problem statement shall also be provided in this chapter along with the aims,
objectives and research questions.
1.1. Background of the study:
The study shall emphasize upon the management of the project stakeholders in context of
municipality environment in South Africa. The stakeholders involved herein include the rate
payers, the Government of the country and the private sector. The construction and maintenance
of the roads is looked after by the municipalities and the finance is obtained in the form of taxes
paid by the countrymen and the funds raised from the private sector while the entire process is
governed by the Government of South Africa. Proper road facilities are necessary for facilitating
the interaction between the countrymen and the exchange of goods and services. Well- connected
roads are necessary for the economic growth of a nation as it helps in the easy transportation of
goods. The capital projects of road infrastructure in South Africa are managed by National and
Provincial Government through Department of Transport and SANRAL (South African National
Road Agency Limited) however; the municipality mainly handles the maintenance and road
expansion projects. The project stakeholders are affected by the success or failure of a project
and also have the capability to drive a project towards success or failure. In case of construction
projects, the stakeholders are those individuals or group of individuals who have their interest or
some form of ownership in the projects and contribute either their skills and knowledge or
monetary support in the project.

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Effective stakeholder management helps in the formation of cordial relations with the
stakeholders by understanding and managing the expectations of the stakeholders (Maylor,
Blackmon and Huemann 2016). Engaging stakeholders is often a challenging task to manage the
stakeholders on a regular basis. It is necessary to know the expectations of the stakeholders and
fulfill their expectations by involving them in the important processes. It is important to know
the manner in which the different stakeholders shall be involved in the organizational processes
or projects. It is necessary to establish proper communication with the stakeholders and keep
them informed about the important facts and decisions in order to keep them satisfied.
1.2 Research aim:
The major aim of the research is to analyze the importance of management of project
stakeholders in context of municipality environment in South Africa.
1.3 Research objectives:
The following are the research objectives:
 To know what is importance of management of project stakeholders in public projects
 To understand the role of municipality of South Africa in the construction and
maintenance of roads
 To identify the different stakeholders involved in the project
 To identify the ways in which the stakeholders involved in the project can be managed in
order to ensure success of the project
1.4 Research questions:
 What is importance of management of project stakeholders in public projects?

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 What is the role of municipality of South Africa in the expansion and maintenance of
roads?
 Who are the stakeholders involved in the project?
 How can the stakeholders involved in the project managed in order to ensure success of
the project?
1.5. Problem statement:
The municipality in South Africa is facing several challenges in terms of rehabilitation of
the road networks. The issues faced by the Government are in terms of lack of human capital,
outdated equipments, high rate of employee turnover and lack of finance (Marks and Trapido
2014). The report addresses the issues related to the management of project stakeholders while
addressing the issues of good practices. A proper well- connected road system is necessary for
the growth and development of South Africa, which would involve proper stakeholder
management.
1.6 Structure of the research paper:
The research paper comprises of five chapters. The first chapter comprises ofvthe
introductory part, which includes the background of the study, research aims, objectives,
questions and the problem statement. The second chapter comprises of the literature review
wherein the theories, models and concepts pertaining to the research topic are explained in detail.
The third chapter consists of the research methodology that provides a systematic outline to the
researcher according to which he or she conducts the research. This chapter contains the research
philosophy, data collection methods, sampling methods, ethical issues and limitations of the
research study. The fourth chapter comprises of the findings and analysis. The findings can be

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obtained either from primary sources or secondary sources or both. The last or fifth chapter
comprises of the conclusion part wherein the summary of the entire research process is
mentioned.

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2.0 Literature review:
This section comprises of the relevant theories, concepts and models related to the
research topic. This section contains the academic evidences related to management of project
stakeholders in context of Municipality environment.
2.1 Socio- economic conditions of South Africa:
According to Marais (2013), the socio- economic conditions of South Africa have not
been in the favor of the nation over the past few years. The country has witnessed low growth
rate over the past few years, which has affected the development of the country. The country has
been facing several issues such as weak consumer demand, fall in the business investments and
unfavorable climatic conditions like drought over the past few years. The production of power
has improved in the country but the development of the country has been adversely affected due
to lack of proper infrastructural facilities and excessive costs of raw materials. The slow or rather
stagnant economy of the country has raised the number of unemployment in the country. This
has resulted in the widening of income inequality gaps among the countrymen. However, the
regional integration has provided ample opportunities to the country but the sub- regions in the
country have not been much advanced (Baker, Newell and Phillips 2014). The country has huge
growth potential but still the economic integration remains below the mark. The entrepreneurial
activities in the nation remain low and it is necessary to boost entrepreneurship in the country in
order to improve the socio- economic conditions of the country.
According to Marks and Trapido (2014), the slow growth rate of the economy has created
difficulties for the establishment of new businesses. In addition, the issue of red tape has been a

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major difficulty in setting up a new business in the area (Walker 2015). The improper quality of
education in the country has resulted in lack of knowledgeable and experienced entrepreneurs. In
order to encourage entrepreneurship within the country, the government is required to offer
financial and non- financial help to the entrepreneurs. The macroeconomic policies of the nation
are usually constrained along with the limited fiscal space. The shortage of skills in the country
has hampered the growth rate. The intra- regional trade has been low as compared to the other
communities and the non- tariff barriers have been pervasive. Another major reason behind the
slow growth rate of the country has been the weak trade and improper infrastructure. Red tape
has been adding difficulties for the entrepreneurs in South Africa since ages.
2.2 Project and Project management:
According to Kerzner (2013), project refers to a set of activities or tasks that are to be
carried out to meet some objective or set of objectives. A project usually have two parts namely
technical and functional aspects. Projects can be undertaken by both private sector and public
sector for obtaining benefits from the project. Project management refers to the application of
appropriate skills and knowledge in the execution of the projects. Project management helps in
driving a project towards the desired goals (Walker 2015). For this purpose, every project has
one or more project managers who are responsible for planning, controlling, managing and
directing the activities involved in a project. The project management involves sequence of
activities such as initiating, planning, executing, monitoring, controlling and closing. Project
management enables the project managers and the members involved in the project to ensure that
they share similar vision regarding the objectives and the ultimate goals of the project (Golini,
Kalchschmidt, and Landoni 2015).

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2.3 Municipality or public projects:
According to Kelly, Male and Graham (2014), the projects initiated and governed by the
Government of a nation are known as municipality or public projects. These projects may
comprise of launching of a new product or service by the Government of a nation such as
construction of new roads or initiating a road safety campaigns. These projects usually involve
infrastructure projects that are financed and built by the government. These may include
construction of roads, bridges, schools, hospitals, parks, railroads, dams, and several others. The
public projects are usually long- term projects that require huge finance and human resource.
Similarly, there are several projects initiated by the Governments of the nations to improve the
socio- economic conditions of their respective nations (Inam et al. 2015). The public projects are
usually initiated with the objective of the welfare of the common masses. The Government does
not derive any quick benefits of profits from such projects but receive long- term benefits from
such projects (Mir and Pinnington 2014).
2.4 Stakeholder management:
According to Weiss (2016), stakeholder refers to the group of individuals without whose
support, an organization would cease to exist. Stakeholders are mainly those individuals or group
of individuals who have the capability of affecting the success or failure of an organization or
project. Stakeholder management refers to the management of the stakeholders in such a manner
that the organization derives the maximum benefits from them. Stakeholder management is an
important part of any project or activity. However, project stakeholders are those individuals or
group of individuals who are actively involved in a project and take active participation in the
project activities (Mok, Shen and Yang 2015).

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According to Fassin et al. (2017), the project stakeholders are affected by the success or
failure of a project and also have the capability to drive a project towards success or failure. In
case of construction projects, the stakeholders are those individuals or group of individuals who
have their interest or some form of ownership in the projects and contribute either their skills and
knowledge or monetary support in the project. Effective stakeholder management helps in the
formation of cordial relations with the stakeholders by understanding and managing the
expectations of the stakeholders. Stakeholder management is a systematic procedure of
managing the stakeholders that helps in achieving the objectives of the projects or activities in an
efficient manner (De Brucker, Macharis and Verbeke 2013).
2.5 Role of stakeholders in success or failure of a project:
According to Verbeke, and Tung (2013), stakeholders have a significant role in the
success or failure of an organization or project. Stakeholders usually invest money or their skills
and knowledge in an organization or project with the motive of obtaining benefits therein. The
actions of the stakeholders help in determining the quality of decisions taken by the
organizational managers or the project managers. Stakeholders may have the voting powers as
well as certain decision- making powers. The stakeholders elect the management and the major
business decisions are dependent upon the quality of decisions taken by the management.
Therefore, the stakeholders indirectly influence the decision- making process within an
organization or project (Fooks et al. 2013).
2.6 Types of project stakeholders:
According to Kazadi, Lievens and Mahr (2016), there are several stakeholders involved
in a project. The top management includes the directors, president, division managers and the

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operating committees that are usually involved in the process of strategy formulation. The top
management is usually responsible for developing in- depth plans and approving plan designs
formulated by the other project members. The other team members are required to report the
project status to the top management. It is necessary to keep the top management informed
regarding the risks involved in the projects and their impacts on the project. Another major
stakeholder in a project is the project team (García-Nieto et al. 2015).
According to Abidin (2015), the project team comprises of the individuals who are
involved in the activities of the project. They can be both full time and part time employees. The
project team is usually headed by a project manager, who directs them towards the achievement
of the objectives of the project. The project manager is responsible for guiding the project
members and solving their issues. Other stakeholders are the peers, who work at the similar
designations within an organization. Resource managers are the ones who borrow resources and
manage them. These resources can be both in terms of financial resources and human resources.
The internal customers are those people within an organization, who are the customers and their
demands are met internally. External customers are those people who do not belong to the
organization but derive benefits from using the products or services obtained from the projects.
The government is also an important project stakeholder as the projects managers are required to
deal with several government regulators and the government has the great powers to influence
the projects. The contractors and suppliers provide raw materials and human resources to the
project managers that help in improving the quality of work and reducing the wastages. The
other stakeholders involve creditors, community and trade unions (Hammerschmid, Van de
Walle and Stimac 2013).

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Figure 1: Types of project stakeholders
(Source: Fassin et al. 2017)
2.7 Stakeholder identification and analysis:
According to Missonier and Loufrani-Fedida (2014), stakeholder identification and
analysis involves identifying the stakeholders involved in a particular project and analyzing the
data that indicates the level of involvement, influence and impact they might have on the success
of a project. The results obtained from this process are documented in a Project Stakeholder
register. This register is constantly updated throughout the life cycle of the project and contains
complete information to identify and analyze the project stakeholders. It helps in formulating the

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stakeholder engagement strategies. The actions of the stakeholders help in determining the
quality of decisions taken by the organizational managers or the project managers. Stakeholders
may have the voting powers as well as certain decision- making powers. There are basically two
types of stakeholder’s namely internal stakeholders and external stakeholders (Yang 2014). The
internal stakeholders comprise of the project owners, management team, employees, creditors,
suppliers and the client organizations. The external stakeholders comprises of the government,
political organizations, social organizations, local communities, media, trade and industry,
residents, interest groups and the general public. Both the internal and the external stakeholders
have considerable impacts on the success or failure of an organization or project (Lawrence and
Weber 2014).
2.8 Stakeholder engagement:
According to Ayuso et al. (2014), stakeholder engagement refers to the process wherein
the organizations involve the individuals or group of individuals, who are influenced or can
influence the decision- making process within an organization or project. Stakeholder
engagement is related with the stakeholder identification and analysis process. Stakeholder
engagement involves several approaches such as pull communication, push communication,
partnership, participation and consultation. Engaging stakeholders is often a challenging task to
manage the stakeholders on a regular basis. It is necessary to know the expectations of the
stakeholders and fulfill their expectations by involving them in the important processes. It is
important to know the manner in which the different stakeholders shall be involved in the
organizational processes or projects. It is necessary to establish proper communication with the
stakeholders and keep them informed about the important facts and decisions in order to keep
them satisfied.

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2.9 Stakeholder engagement in South Africa:
According to Kovacs et al. (2015), in South Africa there are two legislated systems
namely IDP ((Integrated Developmental Plan) and SDBIP (Service Delivery Bid Implementation
Plan). Stakeholder engagement is an important part of public projects in South Africa. The public
projects usually involve construction of roads, bridges, schools, hospitals, parks, railroads, dams,
and several others, which is not possible without engaging the stakeholders involved. These
projects affect the common masses who are not even directly involved in the project. The support
of the local communities and the other stakeholders are essential for the success of a public
project. Therefore, the Government of South Africa ensures proper communication and
involvement of the people who are directly or indirectly affected by the projects (Sierra‐García,
Zorio‐Grima and García‐Benau 2015).

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3.0 Research methodology:
According to Mackey and Gass (2015), research methodology refers to the way of
conducting the research study. This involves following a particular set of steps in order to obtain
the desired results that satisfy the research aims and objectives. Research methodology provides
a proper outline to the researcher that guides the researcher throughout the research process.
Every step of the research methodology is important to follow in order to find correct answers of
the research questions.
3.1 Research philosophy:
The researcher shall choose an appropriate research philosophy in order to assess the
issues related to the management of project stakeholders and the importance of stakeholder
engagement in the success or failure of a project. There are basically three types of research
philosophies namely positivism, interpretivism and pragmatism. Positivism refers to the
philosophy that is dependent upon the quantifiable observations that helps in conducting
appropriate statical analysis. Positivism restricts the researcher during the process of data
collection and interpretation and focuses the researcher towards the research objectives. On the
contrary, interpretivism enables the researchers to utilize the perspectives of others with respect
to the research topic. Therefore, interpretivism helps the researcher in studying the human
perspectives rather than mere scientific perspective. On the other hand pragmatism is a mixture
of both positivism and interpretivism philosophies (Taylor, Bogdan and DeVault 2015).

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3.2 Research approach:
According to Glesne (2015), the most widely used research approaches are inductive
approach and deductive approach. Deductive approach is the one that enables a researcher to
develop a hypothesis on the basis of past theories and concepts. Therefore, this approach focuses
upon available literatures and theories. On the contrary, in case of inductive approach,
emphasizes more upon developing new approaches and concepts, which are based upon the
observations of the researcher. As a consequence, many a times the focus of the researcher
moves from the research questions to the observations. Therefore, the researcher shall emphasize
upon deductive approach in order to maintain the focus upon the research objectives and
questions (Brinkmann 2014).
3.3 Research design:
There are mainly three types of research designs. The following are the three types of
research designs:
 Exploratory
 Explanatory
 Descriptive
According to Flick (2015), exploratory design refers to the research design wherein the
researcher is able to examine the hypothesis and the research objectives and questions. It enables
the researcher to relate the topics and theories with the research topic. On the other hand,
exploratory design enables the the researchers to explain the causes behind a particular
phenomenon. It helps the researchers to predict future happenings in relation with the research
topic. Lastly, descriptive research study is a mixture of both exploratory and explanatory

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research designs. It emphasizes upon the description of the entire population by collecting the
appropriate data. It is the most popularly utilized design due to its dual characteristics.
3.4 Data collection process:
There are basically two types of data collection methods. The following are the two types of
data collection methods:
 Primary data collection process
 Secondary data collection process.
According to Silverman (2016), primary data collection process refers to the technique
wherein the researcher obtains data from primary sources of information such as interviews and
surveys. Collection of primary data involves establishing direct contact with the respondents. On
the contrary, secondary data collection process refers to the technique wherein the researcher
obtains data from secondary sources such as books, journals, internets, magazines and
newspapers. In this process, the researcher is required to emphasize upon the authenticity of the
secondary sources used by him or her. This process does not require the researcher to establish
direct contacts with the respondents. It is based upon the primary data collected by some other
researchers previously, which are easily available and accessible. In this particular research
study, the researcher shall be using both primary and secondary data as the data shall be easily
available.

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3.5 Sampling method:
Sampling method refers to the selection of appropriate respondents from among a large
population. There are mainly two types of sampling methods. The following are the two types of
sampling methods:
 Probability sampling method
 Non- probability sampling method
According to Panneerselvam (2014), probability sampling refers to the sampling wherein
every member of the population has equal chances of being selected as a sample population.
On the contrary, non- probability sampling refers to the sampling wherein the researcher
selects the sample population on the basis of some criterion. There are unequal chances of
selection of the participants in this process.
3.6 Data analysis plan:
There are mainly two types of data analysis plan. They are as follows:
 Quantitative Data Analysis
 Qualitative Data Analysis
Quantitative data analysis refers to the analysis wherein the research is conducted through
questionnaire survey and involves a large number of respondents. It aids in improving the
quality of products and services. On the contrary, qualitative data analysis refers to the
analysis wherein a small number of respondents are involved. It usually involves interviews
through which the researcher gains in depth knowledge about the views of the respondents
(Taylor, Bogdan and DeVault 2015).

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3.7 Ethical consideration:
A researcher is required to follow certain ethical considerations while conducting a
research study. Ethical consideration are the consideration, which are compulsory to be followed
by the researchers. The researchers are required to ensure that the data collected are safe and
must also ensure that he or she shall not disclose any data obtained from any respondent without
their consent. In addition, the researcher is also required to ensure that the identity of the
respondents is kept confidential. The researcher is also prohibited to force any person to take part
in the process of data collection. The respondents are required to participate in the survey
willingly. Another major ethical consideration is that the researcher shall use the data obtained
during the process only for academic purpose and not for any commercial purpose. Therefore, it
is necessary for the researcher to follow the ethical considerations throughout the research study.
3.8 Limitations of the study:
There are several limitations, which a researcher comes across while conducting a
research study. Usually the limitations faced by the researchers involve insufficiency of time and
budget. The researcher might face limitations in terms of time and budget in this research
process.

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4.0 Time scale or Gantt chart:
Activity Months
M
Dec
M
Jan
M
Feb
M
Mar
M
Apr
M
May
M
Jun
e
Finalizing the topic 
Collecting data from secondary
sources
 
Forming a layout of the research
work

Conducting Literature review   
Forming the research plan  
Selecting appropriate research
methodologies
 
Concluding the Study 
Designing a rough draft  
Submitting the Final Work  
Table 1: Time Line of Research
(Source: Created by the author)

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