Exploring Stakeholder Engagement Process as the Success Factor for Infrastructure Projects
Abstract
:1. Introduction
Multiple Stakeholder Engagement Issue–Vague Understanding of Stakeholder Engagement Process and Organizational Enablers in Infrastructure Projects
2. Literature Review
2.1. Achieving Project Success in Large Construction and Infrastructure Projects
- Unique physical product
- Long planning phase and project duration
- Material costs exceed labor costs
- Stationary location of project execution
- Detailed specifications with many standards, norms, and regulations to be met
- Plan-oriented approach to design and implementation
2.2. Engagement of the Project Stakeholders as Critical Success Factor for Infrastructure Projects
- Inform: Provide stakeholders with balanced and objective information that helps them understand issues, alternatives, and/or solutions.
- Consult: Solicit stakeholder feedback on the analysis, alternatives, and/or decisions made.
- Involve: Work directly with stakeholders throughout the process to ensure that their concerns and desires are consistently understood and addressed.
- Collaborate: Work in partnership with stakeholders on every aspect of the decision.
- Empower: Place final decision making in the hands of stakeholders.
Digital Approach to Engagement and Collaboration of Project Stakeholders
2.3. Complex Context of Infrastructure Projects–Enabling Engagement through Specific Project Governance and Management Mechanisms
- Phase gates with documentation requirements and comprehensive audits, especially very early consultations-initial gates (UK, NL) and use of external consultants from the private sector as external auditors (UK, NO)
- Focus on needs and a more robust, clearer, and broader basis for planning in the early stages (“front-end planning”)
- Extensive and early stakeholder involvement (NL)
- Active risk management, independent review of cost estimates, and use of reserves in budgets to protect against uncertainty and avoid cost overruns (UK, NO)
- Professionalize public project sponsors in managing projects and programs and in public procurement by tightening requirements, systems, training, and issuing administrative and management guides.
Croatian Administrative and Organizational Context for Infrastructure Project and Engagement of Project Stakeholders
- Act on the establishment of an institutional framework for the implementation of European structural and investment funds in the Republic of Croatia in the financial period 2014–2020 [95].
- Several government regulations defining the responsibilities of each body for each European Structural Instrument (ESI), e.g., the Regulation on the bodies in the management and control systems for the use of the European Social Fund, the European Regional Development Fund and the Cohesion Fund in relation to the “Investment for Growth and Jobs Objective” [96].
- Establish its own system for project implementation (implementation of activities) and update and, if necessary, detail the project implementation plan provided for in the project proposal;
- Update and, if necessary, detail the schedule provided for in the project proposal and update the responsibilities for the implementation of the project activities…;
- Areas of project implementation monitoring include:
- ○
- Systematic updating and monitoring of the project implementation plan
- ○
- Management of the project team
- ○
- Management of outputs and results
- ○
- Project procurement management
- ○
- Human resource management
- ○
- Risk management
- ○
- Management of information dissemination and visibility
3. Methodology
- Three respondents: construction project manager (as a separate contracting party according to the Act on Works and Activities in Spatial Planning and Construction)
- One respondent: public client (planning, monitoring, and control; project sponsoring-as part of the organization of public clients)
- One respondent: public client consultant (consultation and preparation of initial documents and studies for programs and projects, e.g., feasibility studies; consulting services and project management)
- One respondent: contractor
- One respondent: designer
- One respondent: professional supervisor/superintendent/FIDIC engineer
- Respondent’s experience with infrastructure projects and project management (1st and 2nd question)
- Percent of the EU co-funded project and other funding available (3rd)
- Whether formal stakeholder engagement is conducted on projects and how stakeholder engagement is generally conducted (15th to 19th)
- To what extent do the procurement process, contracts, and project complexity impact stakeholder engagement and project delivery (25th to 28th), etc.
4. Results: Multifaceted Nature of Stakeholder Engagement and Project Success in Infrastructure Projects
- Theme: “Monitoring and control of execution in infrastructure projects”
“…time and cost are monitored based on the (secondary) contract. It is important to distinguish between the so-called primary contract, i.e., the grant award contract (with Managing body of ESI fund) which is based on feasibility study, and all other contracts for construction project services (e.g., contractor), which are called secondary contracts. Monitoring and control can be done against both type of contracts…”.(Project Manager 1)
- 2.
- Theme: “How you evaluate the quality and scope of infrastructure projects”
“…durability, use value, defects in the warranty period” (designer); “descriptive through a list of specifications in the tender” (public client consultant); “…technical specifications, are a measure of quality/scope, that’s how the contract was formed…” (contractor); “…Quality is a very broad term, it is mostly related to client satisfaction…”.(project manager 3)
- 3.
- Theme: “Which stakeholders are key to the execution of the project”
“…social infrastructure–user representative and project manager are key to quality and scope… civil infrastructure–designer/author of the feasibility study and supervising engineer affect the quality; all stakeholders defined in Building Act influence time and cost in all projects, and in EU co-financed projects intermediary body 2 can have a significant influence on quality and cost, even though this is not good…”.(project manager 3)
- 4.
- Theme: “Which stakeholders should be engaged earlier then in the current practice”
“Infrastructure operator, contractor (for technically complex projects), designer, permits authorities, local community, Ministry of Interior Affairs, design supervision… there are many important stakeholders and depending on the project, some of them should definitely be engaged earlier if we want a good story in our project”.(public client)
- 5.
- Theme: “Knowledge of the stakeholder and stakeholder management concept”
- 6.
- Theme: “Usage of the process/activities for stakeholder engagement in projects in which they participated”
“The client is extremely important because he formally has a contract with (internal) stakeholders, the project manager (PM) has quite limited mandate because he is often employed as external consultant… …PM in principle has the responsibility of engaging all stakeholders if he proves capable and if the client needs it, the client sometimes delegates a lot of responsibility to him…”.(project manager 2)
- 7.
- Theme: “The importance of formal SE for successful project performance”
“…it is absolutely important and it is important that it be formalized, for example according to the forms provided in PM standard PM’2…” (public client); “…formal management of stakeholders could bring improvements in management, but a balanced approach should be taken because it consumes energy and time…”.(client consultant)
- 8.
- Theme: “The impact of contracts and the procurement model on the SE”
“(The procurement model) affects, directly and indirectly. It directly affects which internal stakeholder will be engaged, when and to what extent, and indirectly it affects how much it allows project manager to implement their own engagement approach…”.(project manager 2)
- 9.
- Theme: “The influence of the complexity of the project environment on the SE”
“[Technological complexity] has some influence, and it is mainly related to competences, the more competent individuals and firms should have priority during tender… [Organizational complexity] greatly affects all aspects, much more than technological complexity, it affects how much you can do and how you can do it and when and what will you do in relation to engagement of crucial stakeholders”.(project manager 1)
- 10.
- Theme: “Which aspects of management constitute the discipline of stakeholder engagement in construction projects”
“Soft certainly more… both serve and are very entwined, but if people are not motivated, encouraged in some way, not even the best procedure can help… sometimes people don’t want to submit to the procedures…” (project manager 2); “…if the ‘soft’ ones don’t work, then ‘hard’ are very important. First, a ‘soft’ approach is tried…”.(project manager 3)
- 11.
- Theme: “How significant are the differences in the implementation of engagement approach from project to project”
“The client decision has the greatest influence. The decision refers to the expertise and desire of whether and how the client will engage an individual stakeholder” (supervising engineer)”; “…all this has a feedback loop, the engagement depends on the recipient (of the engagement) and not only on the one who engages…”.(contractor)
4.1. Identifying Factors of Success/Failure and Conceptualizing the Framework Model for Stakeholder Engagement in Infrastructure Projects
- Level 3: The level of the broader industry and regulatory context–factors of success/failure that are related with aspects that are not under client organization or the project management’s direct influence
- Level 2: Level of the client’s organization (management and procurement)–factors of success/failure that are related with the client’s organizational processes/activities and competences
- Level 1: Level of operational project management–factors of success/failure that are related with activities/processes of the project manager and his core team
4.1.1. Level of Operational Project Management Approach (Level 1)
4.1.2. Level of Processes and Procedures of the Client Organization (Level 2)
4.1.3. The Level of the Broader Industry and Regulatory Project Context (Level 3)
4.2. Sumary Analysis and Elaboration the Framework Model for Engaging Stakeholders and Achieving Success in Infrastructure Projects
4.3. Verification of Developed Conceptual Framework
5. Discussion and Conclusions
5.1. Summary of Findings and Theoretical Implications
5.2. Limitations
5.3. Practical Implications and Further Research
Author Contributions
Funding
Data Availability Statement
Conflicts of Interest
Appendix A. Interview
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Name/Description of Success Model (Author and Year of Published Article) | Construction Stakeholder Type Which Perspective was Considered | The Category of Success Criteria and the Number of Associated Success Criteria or Measures |
---|---|---|
Success criteria of buildings projects (Al-Tmeemy et al., 2011) [61] | Contractors (project) perspective | Project management success (3 criteria) Product success (3 criteria) Market success (4 criteria) |
Project success criteria (Williams 2015) [60] | Contractors (organization) perspective | Was the final product good? (3 measures/criteria) Were the stakeholders satisfied with the project? (5 measures/criteria) Did the project meet its delivery objectives? (3 measures/criteria) Was project management successful? (6 measures/criteria) |
Dimensions of project value (Vuorinen and Martinsuo, 2019) [63] | Perspective of public client/government and wider society | Social and environmental value (descriptive) Financial value (descriptive) Systemic value (descriptive) |
KPIs for assessing construction megaproject success (He et al., 2021) [57] | Perspective of public client/government | Project efficiency (3 KPI) Key stakeholders’ satisfaction (2 KPI) Organizational strategic goals (2 KPI) Comprehensive impact on society (2 KPI) |
Years of Experience in Construction and Project Management; Education | The Project Role(s) They Perform in Projects | The Type of Infrastructure Projects Respondent Has Experience with | Phases of the Project in Which They Participate (See Appendix A) | |
---|---|---|---|---|
Project manager 1 | 20 in construction and 16 in project management; civil engineer | Construction project management, client consultation and construction supervision | Civil–i.e., roads, railroads, water agglomeration… Social–i.e., hospitals schools… | Most often in the last two stages, sometimes in the last three, and there were rare cases from the early stages |
Project manager 2 | 28 in construction and 20 in project management; civil engineer | Construction project management, client consultation and construction supervision | Civil–i.e., water agglomeration, waste management centers, ports, and marines… Social–i.e., hospitals, schools… | Most often in the last two stages, sometimes in the last three, and there were rare cases from the early stages |
Project manager 3 | 20 in construction and 10 in project management; civil engineer | Consulting in planning and monitoring and control; construction project management | Civil–i.e., roads, water agglomerations Social–i.e., schools, courts… | Most often in the last two stages, sometimes in the last three, and there were rare cases from the early stages |
Public client consultant | 12 in consultancy (project management), 7 in construction; economist | Consultations in the preparation of study and tender documentation; project management | Civil–water agglomeration Social–visitor centers, adaptations of cultural buildings… | Most often early stages in the capacity of consulting, in the case of project management in all stages |
Public client | 20 in construction and project management; civil engineer | Consulting in planning, monitoring and control | Civil–i.e., roads, waste management centers, power plants, airports … | Most often in the last four phases; there are examples in all phases (sometimes only early phases) |
Supervising engineer/FIDIC engineer | 15 in construction and project management; civil engineer | Construction supervision and construction project management | Civil–i.e., roads, water agglomerations Social–i.e., social housing (POS) | Most often in the last two stages, very rarely earlier |
Designer | 20 in construction and 15 in project management; civil engineer | Designing, design supervision; construction supervision; project management | Civil–i.e., roads, water, agglomerations… Social–i.e., hospitals schools… | Most often in the last four phases |
Contractor | 23 in construction and 17 in project management (contractor side); civil engineer | Contractor | Civil–waste water treatment devices Social–schools, hospitals | Most often in the last three phases, and rarely in the last five (within the “design and build” procurement model) |
Success/Failure Factors | Suggestions for Improvement on These Factors (Project Management Level) |
---|---|
(1) Some stakeholders must be prioritized because of their influence (those named in Building Act and project manager. In some cases, there are an additional few due to specific complex project environment). | For prioritized stakeholders, it is necessary to systematically approach to the planning and the implementation of the operational engagement approach (i.e., use tools and methods). It is proposed to create a separate detailed (formal) approach. Other stakeholders are considered as a lower priority but constantly monitored. If they acquire more influence, set them as a higher priority. |
(2) There are several key activities/approaches of engagement that must be systematically implemented in the project (e.g., SE1–enable relevant stakeholders to provide inputs in scope definition for the project and/or phase(s) when starting the project and/or phases…). | The effectiveness of seven stakeholder engagement activities/processes was confirmed (part of other research). It is necessary to pay attention to these processes and systematically carry out related activities. Depending on the project phase, certain activities should be strengthened for the currently engaged (influential) stakeholders. |
(3) Procurement model and defined responsibilities (through contracts) have great influence on the abilities to properly engage project stakeholders. | Educate the project manager and his team to assist clients in procurement process, especially in elaboration of key roles and responsibilities for internal stakeholders through the ‘procurement tender documentation’. It is necessary to ensure that the responsibilities of stakeholders do not overlap or are not overlooked. |
(4) The complexity of project organization and environment has a significant influence on the stakeholder engagement approach. | Acquire/improve competences and develop methods for evaluating the organizational complexity of the project, namely the complexity and dynamism of project stakeholder landscapes. Also, develop method to tailor engagement strategies according to the level of complexity and dynamism in the project. |
(5) There is a great importance of both “soft” and “hard” skills for the proper engagement of stakeholders in infrastructure projects. “Soft” skills are a little more emphasized. | Raise competences related to people, for example, in the form of communication, coordination, cooperation, engagement, and negotiation. Also, raise technical competencies such as planning, monitoring and control for key project aspects, i.e., time, cost, quality, scope, technical performance. |
Success/Failure Factors | Suggestions for Improvement on These Factors (Client’s Organization Management and Procurement Level) |
---|---|
(1) The project manager needs to be engaged earlier than the usual (current) practice to enable proper engagement of other key stakeholders. | Improve the current practice and procedure of giving mandate to the project manager. It is necessary to systematically design the project development process in the early stages, i.e., to clearly define the moment of involvement of the project manager, especially if procurement is carried out for (external) project management services (e.g., develop and implement a project management framework). |
(2) Procurement model and defined responsibilities (through contracts) have great influence on the abilities to properly engage project stakeholders. | After obtaining the project mandate, refer to the delimitation of the responsibilities of the client team and the project manager regarding the organization of the project procurement process, and the implementation of the procurement plan (i.e., a series of public procurements). Also, determine the responsibilities for the process of communication and negotiation in a particular procurement procedure. |
(3) The complexity of project organization and environment has a significant influence on the stakeholder engagement approach. | Plan the number and size of different procurements, e.g., contracts, and control procedures depending on the assessment of the project complexity to enable better conditions for engagement. Try to reduce the number of different procurements depending on the complexity (e.g., to combine certain services into one contracts) or, if necessary, to increase the number of procurements (e.g., one larger contract is separated into a few smaller). This directly affects the final number of stakeholders and their mutual relations. |
(4) Significant differences in the engagement of external (non-contractual) stakeholders is often a source of unforeseen risks. | Educate the employees of public contracting authorities on the importance of the discipline of engaging interested parties and its proper or formal application in the project to establish a uniform and high-quality approach to external interested parties in each project. For example, access to public consultation, i.e., access to the local community that is located in the immediate vicinity (of the works) of the project. |
Success/Failure Factors | Suggestions for Improvement on These Factors (Level of Broader Industry and Regulatory Context) |
---|---|
(1) Some stakeholders must be prioritized because of their influence (those named in Building Act and project manager. In some cases, there are an additional few due to the specific complex project environment). | Amend the Building Act and name the role of construction project manager and specify its legal responsibility or detail his responsibilities listed in Act on Business and Actions in Spatial Planning and Construction. Another possible way is to provide guideline for the relationship between the construction project manager and other project participants. Also, it is possible to legally introduce “other” stakeholders which represent usual public or private interests (that may or may not appear in the project). |
(2) The project manager needs to be engaged earlier than the usual (current) practice to enable proper engagement of other key stakeholders. | It is possible to implement special procedures for complex or financially significant projects (the timing and extent of responsibility of key stakeholders can depend on the type of project, the complexity of the project or the size of the largest contract). This aspect is often part of project governance frameworks (i.e., EU and UK both have definition of Major/Critical projects with its specific management framework). Devising the governance framework can also clarify the project early stages and enable better context for proper stakeholder engagement. |
(3) Procurement model and defined responsibilities (through contracts) have great influence on the abilities to properly engage project stakeholders. | Introduce new types/models of the so-called collaborative contractual arrangements. Adopt the practices tried in some countries (e.g., Australia, UK, Norway, OECD guidelines) to move towards a procurement model that falls within the spectrum of collaborative procurement arrangements. In these collaborative models the most attention is put on the cooperation of the client and the delivery team from the earliest stages. |
(4) Significant differences in the engagement of external (non-contractual) stakeholders is often a source of unforeseen risks. | On a broader level of the entire industry effort is needed to change the perception about involving stakeholders in important project decisions (not only because of their intrinsic value but also because of the risks that arise if certain interests/stakes are neglected). In process of developing the public strategies and programs, new governance frameworks can be introduced. These frameworks should emphasize engagement of infrastructure end users and the local community and thus honestly advocate sustainability and value co-creation. |
Verification Questions (in Their Short Form) | Verifier 1 | Verifier 2 | Verifier 3 | Verifier 4 |
---|---|---|---|---|
1. What do you think about the proposed breakdown of factors into three levels… | 4 | 4 | 5 | 5 |
2. …the client and the project manager of the two key stakeholders for the implementation… | 5 | 4,5 | 5 | 5 |
3. …the proposed framework enhances your understanding of SE… | 4 | 4,5 | 4 | 3 |
4. Suggestions for exploiting and improving factors related to stakeholder engagement are appropriate… | 4 | 4 | 4 | 4 |
5. …the framework model covers most of the factors of successful execution related to SE… | 4 | 4 | 4 | 5 |
6. …the proposed framework can contribute to the organization of the client… | 3 | 4,5 | 3 | 3 |
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Prebanić, K.R.; Vukomanović, M. Exploring Stakeholder Engagement Process as the Success Factor for Infrastructure Projects. Buildings 2023, 13, 1785. https://doi.org/10.3390/buildings13071785
Prebanić KR, Vukomanović M. Exploring Stakeholder Engagement Process as the Success Factor for Infrastructure Projects. Buildings. 2023; 13(7):1785. https://doi.org/10.3390/buildings13071785
Chicago/Turabian StylePrebanić, Kristijan Robert, and Mladen Vukomanović. 2023. "Exploring Stakeholder Engagement Process as the Success Factor for Infrastructure Projects" Buildings 13, no. 7: 1785. https://doi.org/10.3390/buildings13071785
APA StylePrebanić, K. R., & Vukomanović, M. (2023). Exploring Stakeholder Engagement Process as the Success Factor for Infrastructure Projects. Buildings, 13(7), 1785. https://doi.org/10.3390/buildings13071785