Significance of stakeholder management in construction projects Essay

Significance of stakeholder management in construction projects - Essay Example This research will begin with the statement that construction projects result in a product like residential buildings, dams, parks etc. that is further utilized to house a number of other products. A construction project may impact several interests positively or negatively. Positive impacts may include high quality living and better facilities, while negative impacts may comprise deterioration and change to environment not only at construction site but on all levels. Those impacted by the project are referred to as project stakeholders. A stakeholder is a person or a group whose interests are affected by the execution or operation of a project. They may exert influence over the project through their attributes of power, legitimacy, expertise and urgency but may not otherwise be considered as stakeholders. Generally, there are five key stakeholders in every project: project manager, performing organization, team members, sponsor and end user. However, geographical differences and nat ural events directly affect the successful execution of the construction project and may involve a number of unique stakeholders like environmental and community groups being effected by the building process or its operation after completion and may not be involved in other type of projects. Similarly, regulatory agencies who control certain aspects of the construction by issuing permits and certificate are also key stakeholders. These stakeholders, if not managed well, can influence the project by delaying, changing the scope and even cancelling the project.