Literature Review

Stakeholders engagement gives the practical and financial support to the business because these are the are the key drivers for the business (Eyiah-Botwe, Aigbavboa and Thwala, 2016; Bal, 2014). The engagement of stakeholders in the mega projects depends on the nature and time span of the construction. In this regard, the participation of stakeholders and sustainable construction both are interlinked in the large engineering projects (Ochieng and et al., 2013). Furthermore, the greater involvement of partners leads the project closer to the success and expected outcomes. The current report is based on the stakeholder’s engagement in engineering projects. A critical literature review has been done to assess the effectiveness of stakeholder’s engagement in construction. Moreover, related references, books, articles and journals have been preferred to analyze the stakeholder’s participation.

Role of stakeholders in construction projects

Stakeholders are the participants of the different projects which can be in the form of the general public, shareholders, investors, government, contractors, suppliers and clients etc. (Doloi, 2012.). Stakeholders play various roles such as investor, decision-maker and innovator in the engineering projects (Yang and et al., 2009). Stakeholder management and stakeholder’s behavior are the key success factors for the effective engagement of stakeholders (Beringer, Jonas and Kock, 2013, p.830). The success of the projects based on stakeholder management because it creates a combination for the project manager in the form of investors, contractors and decision-maker etc. According to Aaltonen (2011), a stakeholder’s engagement is affected by the level of the project as well as results. The construction projects should be based on the perspectives of ethics and sustainable management because this affects the success of the projects. However, Jonas (2010) stated that the stakeholders remain engaged in the whole project portfolio management because the success of one project does not reflect the success of whole portfolio management of projects. Similarly, Freeman and et al. (2010) mentioned that the collaboration of stakeholders depends on the achievements of the firm’s objectives which are framed at the initial start-up of the construction. Moreover, the aims and vision of the projects are clearly defined and attainable in a short time period then it can be helpful to enhance the stakeholder’s engagement. Therefore, it indicates that the stakeholders play a crucial role in the management of project portfolio because the success of the whole portfolio depends on the stakeholder’s involvement. The greater achievement of the projects will take place with the help of the effective participation of the stakeholders.

Li, Ng and Skitmore (2012) asserted that mega projects such as infrastructure and construction are generally held by the government. The managers are emphasizing on the improvement of international reputation, enhance the sustainability of construction and increasing the infrastructural facilities in the society to maximize the public interest. Similarly, Rowlinson and Cheung (2008) mentioned that the successful implementation of construction projects depends on the cooperative efforts of the government, public as well as business sectors. For instance, a Greek Desk Project at Cross Harbor Tunnel (CHT) was introduced with the involvement of stakeholders. Furthermore, the government and public both are invited for the effective communication, commitment and transparency in the project because these are helpful in taking the more legitimate decisions with opinion and knowledge of the local communities (Chan, 2014). In this manner, the engagement of stakeholders is beneficial for the effective design of the building and to maintain the long-lasting relationships with a project manager. Further, Molwus (2014) asserted that currently, the companies are focusing on the stakeholder’s engagement at the beginning of the projects to improve the quality, relationships and to reduce the uncertainty as well as risks of the projects. For example, Manila water company was giving priority to the involvement of stakeholders in 1997 by open relationships. The company includes the customers, local NGO’s and government as participants in the supply of water. Furthermore, with the help of these stakeholders, the Manila company significantly improved its service delivery and the percentage of water supply increases in 2004 and 2006 from 26% to 95% (International finance corporation, 2007). Thus, it indicates that the stakeholder’s involvement is required in all fields like construction as well as service sector because this is helpful in maintaining the better relationships. Moreover, this is also reducing the uncertainty and risk by improving the quality.

Role of stakeholders in construction projects

Figure 1: Stakeholder Engagement

(Source: International finance corporation, 2007)

The stakeholders play a crucial role in the engineering projects because their consent is needed for the major development plans. In this regard, Li, Ng and Skitmore (2013) stated that the planning and delivery of infrastructure can provide the better environmental, social and economic results with the help of the effective participation of stakeholders as well as the community. On the other hand, Doloi (2012) mentioned that the greater participation of shareholders in the big engineering projects are helpful in reducing the risk, cost and improve the collaboration with all contributors. For instance, there is a proposed plan for the construction of Western Sydney Airport and going to achieve by December 2026. The project manager is focusing on the development of airport facilities for 10 million travelers as well as a single 3.7-kilometer runway for the effectiveness of the airport. Additionally, the construction company is emphasizing on the completion of the airport within the expected time, standardized design and to achieve the better outcomes for the Sydney region (WSA Co. Ltd, 2018). Furthermore, a wide range of stakeholders and community members were invited for Australia’s largest infrastructure project of Sydney airport.  Stakeholders anticipate the potential solutions for the issues occurs during the construction of the airport.  

Whitelegg (2005) stated that all the stakeholders are needed to cooperate, support and understand the necessity of the airport regional development to enhance the equity of the project. With the help of the different stakeholders, all the challenges and issues can be mitigated by adopting the coordination strategies. Similarly, Badoe and Miller (2000) asserted that changes in the infrastructure and land use can raise the consequence of external shocks in the form of maximization of fuel cost. So, these kinds of changes should take place with the consultation of stakeholders which may be helpful in reducing the risk of uncertainty. For instance, a new Brisbane parallel runway within airport and related infrastructure project has been proposed in Australia due to rapidly increase the number of flights and accommodations as per the future requirements. Moreover, for the construction of parallel runway, the higher involvement of stakeholders as well as the public comment has been invited on the basis of environmental impact assessment. Furthermore, historical and future estimations were considered for the construction of a new airport runway with respect to weather and climate (Stevens, Baker and Freestone, 2010). In this manner, the engagement of stakeholders is necessary for the success of mega projects because the design of runway will take place as per the public comments.

Successful stakeholder’s management in construction

The engagement of stakeholders in construction projects should be effectively managed by the project managers. The successful involvement of stakeholders based on the proper communication, interaction with all participants, sustainable support and involvement in the decision-making process (Rodriguez?Melo and Mansouri, 2011). In this regard, Bakens, Foliente and Jasuja (2005) stated that the long-term performance of the construction project depends on the decisions taken by the stakeholders regarding the size and time frame. The stakeholders can be managed by the effective relationships among all the participants and project team.  However, Burton and Obel (2003) asserted that the stakeholder’s management can be a critical task when the project has a problem regarding high uncertainty and complexity in the environment. In this context, the effective management of shareholders can be done with the help of maintaining a balance between different parts of the projects and available resources. Therefore, it shows that the management of stakeholders is quite difficult in the large projects due to a higher level of uncertainty and mismanagement of resources. Moreover, ineffective communication also arises the issues for the engagement and management of stakeholders.

Stakeholder engagement in Mega projects

Figure 2: A framework of successful management of stakeholders

(Source: Yang and et al., 2009)

Schaafsma, Güller and Amkreutz (2010) stated that the role of air travels is increasing on the regular basis as per the future insights because in modern cities airports are helping to shape the urban structure. Most of the population is living in the urban regions and wants to grab the all facilities for the comfort and smooth running of the life. However, Graham, (2013) asserted that the scope of the air travel is expanded in the previous years due to the involvement of stakeholders in the privatization, globalization as well as corporatization. In the current business situations, the stakeholders are compromising with the big political parties and governments to raise the automated airports and to remove the complexities of other stakeholders (Appold and Kasarda, 2013). For instance, between the time period of 1992 and 2002, Australia’s 22 major airports were privatized under the Airports Act 1996 and the agreement was made for the 99-year lease contract base with the Australian federal government. Moreover, all the controls power were under the airport-lessee but the preference was allotted to the government because without the approval of the government the lessee cannot apply the changes in the regional areas of the airport (Stevens, Baker and Freestone, 2010). Due to privatization, various airports become the major center of the business and different advanced business opportunities were developed in commerce. Nonetheless, the result of these changes was that both the traditional as well as new airports were dealing with the several issues regarding the urban and regional environment (Freestone et al., 2006). It reveals that the involvement of stakeholders in the airport construction is beneficial because it renders the facility to change the services from combined ownership to privatization. Moreover, the construction of airports in the urban areas is helpful to provide the perfect shape to the particular location.

Involvement of stakeholders in decision-making

The stakeholders are deeply invited in the decision-making in the respective projects because these participants live in the society and the success/failure of the projects depends on the active participation (Salet, Bertolini and Giezen, 2013.). In this regard, the involvement of stakeholders in the engineering projects is important to analyze the project outcomes. However, Rose and Manley (2010) asserted that the late involvement of stakeholders and discrepancy in the relationship with others in the construction projects leads to the negative assessment for the contractors and consultants. Similarly, ICIOB (2011) stated that inadequate collaboration of the stakeholders in the public sectors of developing countries provides the compromised performance and incomplete results for the project. The effective collaboration with stakeholders is needed for the better results and adequate outcomes for the project. Thus, it shows that the inadequacy in the involvement of stakeholders rise impact on the efficiency of the project because the schedule performance of mega projects is hindered by the conflicts and indecisiveness among all stakeholders. For example, Brisbane New Parallel Runway (NPR) project of the airport has been communicated to the stakeholders. The design and the approval of the project were done with the consent of the stakeholders at the huge level of interaction. Furthermore, a 22-month stakeholders engagement procedure was undertaken with the perspective of solution for the issues. In this manner, after the completion of these time span, in 2006 a public comment was invited for the NPR project of Brisbane airport (Brisbane Airport, 2013). The success of this project is based on the extent connectivity among all stakeholders as well as the strong leadership of the project manager.

Benefits of stakeholder engagement in Engineering Projects

Tompkins, Few and Brown (2008) stated that the preference of stakeholders regarding involvement in construction projects is affected by the climatic changes as well as the location which was selected. The uncertainty of risk increases due to frequent changes in climate and the natural calamities. However, Khan and et al. (2012, p.330) argued that the project manager can deal with the climatic changes with effective design of the construction as well as by considering future estimations. The NPR projects could be done on the basis of environmental criteria due to rising sea level. For example, there were issues found during the construction of Brisbane new parallel runway because the location of the projects was selected at close to the sea site. So, as per the evaluation of the region, it has been found that there are the chances of natural calamities such as a rise in the sea level, dangerous storm, local as well as regional flood events and sudden increment in the temperature etc. (Brisbane Airport Report, 2013). All of these issues create the risk for the airport location and increases the dissatisfaction among the travelers. In this regard, the design of the NPR has been prepared in this manner that this kind of issues can be mitigated and future projections were made on the basis of climatic changes. A number of project designs and planning decisions were associated with the NPR projects where the involvement of stakeholders is the imperative task. Moreover, all of these actions were taken with the help of the new decisions and approval of stakeholders. The new runway place and layout were based on the cost-effectiveness, safety standards, environmental impacts and noise restrictions.

The excessive involvement of stakeholders in the large engineering projects creates the critical situations for the project managers and increases the construction period (Tang, Shen and Cheng, 2010). For instance, there was a huge involvement of government in the Sydney Airport construction project and the Australian government has found the issues in the project. The issues were relating to the requirement of more legal documents, rules and policies of the Australian government for the developments in the Western Sydney Airport (Australian Government, 2017.). In this context, the government has taken 2 years for the approval of the Sydney group and at the end, this has been decided that the Sydney group would be able to do the developments in the Sydney Airport by mid may 2017. In this manner, there was an excessive involvement of government in the construction of a new airport in Sydney. All the decisions were taken by the federal government regarding improvements and issues in the airport plan.

Conclusion

 On the basis of the report, it has been concluded that the stakeholder’s engagement is affected by the level of the project as well as outcomes. It has been found that the greater involvement of stakeholders in the construction projects is helpful in minimizing the cost, risk and uncertainty related to project. The success and failure of the engineering projects depend on the effective involvement of the participants. Moreover, it is also concluded that stakeholders support, cooperation is required to increase the equity of the project. Furthermore, the late involvement of the stakeholders and the discrepancy in the relationships lead to the negative impact on the construction. At the end, it is also concluded that there should be a complete communication among all stakeholders as well as a project manager with respect to construction.

Stakeholder Engagement in Parallel Runways Project: A Case Study

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