Stakeholder engagement is a critical aspect of construction project management as it helps achieve sustainability and mitigate potential conflicts and risks. Project implementation may be disrupted due to conflicts of interest among stakeholders or society. Effective stakeholder engagement allows Investors and construction companies to proactively consider the wishes and needs of all those with a stake in the project, fostering stronger connections, trust and confidence.
Here is our overview of construction industry stakeholder engagement and successful project delivery:
- Types of Stakeholders: We divide the stakeholders of construction projects into two main groups: direct/internal stakeholders (e.g. Clients, contractors, subcontractors) and indirect/external stakeholders (e.g. local residents, government, utilities). Depending on the project, location and many other important factors such as social research, we are particularly sensitive to identifying and prioritizing relationships with key stakeholders, as this is essential to developing appropriate engagement strategies.
- Benefits of effective stakeholder engagement: With our international experience in stakeholder engagement, we help Clients and construction companies recognize and understand the values and perspectives of those affected by the project, which leads to more informed and correct decisions at every stage of the project. This allows us for broader views and opinions to be expressed, allowing us to improve our services and products to better meet the needs of our stakeholders. By effectively communicating and collaborating with stakeholders, we can help Clients mitigate risks, such as evidence and performance risks. Engaging with stakeholders provides us with a better understanding of their experiences and needs, which leads to more effective decision-making and finding solutions.
- Strategies for improving stakeholder engagement: By clearly communicating the scope of the project and roles/responsibilities to all stakeholders, we establish trust and boosting engagement. We use construction planning software, PMIS, document management, and other tools to improve communication and collaboration between stakeholders. When a project is initiated, our team has a dedicated manager (Project Manager or other team member) for community engagement, social services, who serves as a single point of contact for local stakeholders, including private meetings with environmental and social impact organizations. We also conduct due diligence and quality monitoring of stakeholder and community engagement on behalf of the Client, in accordance with project needs and in a sensitive manner. Also, when implementing a project, we organize regular stakeholder meetings to provide updates, resolve issues, and collect feedback from stakeholders.
- Issues and considerations: Stakeholder engagement is often seen as an additional task, and it can be difficult for the Client, as well as other project participants such as the designer or construction companies, to devote sufficient time and resources to this. We strive to balance the needs and expectations of different stakeholder groups, which can often be a challenging task requiring careful prioritization and communication.
Therefore, we emphasize that effective stakeholder engagement is critical to the success of construction projects as it helps both the Investor and construction companies understand stakeholder perspectives, reduce risks and make more informed decisions. By implementing strategies to improve stakeholder engagement, we can deliver projects more efficiently, save Investors money, and learn valuable lessons for future capital projects.
To find out more, please contact us at info@ek-innovative.com to receive information from experts competent in the respective field.