Impact of Stakeholders on Project Delays and Increase Cost in Transport Sector - Coursework Example

A Project Management Study of Impact of Stakeholders on Project Delays and Increase Cost in Transport Sector A Project ManagementStudy of Impact of Stakeholders on Project Delays and Increase Cost in Transport Sector Background For purposes of research the scope of the meaning of a stakeholder has to be defined. There are several stakeholders involved in business projects. These includes; suppliers, consumers, and the community, owners of the business, employees, managers and concerned organizations. Olander (2006) indicates that construction projects bring varying degrees of change and deterioration at local, national and even international level. Project stakeholders are the representatives of the interests achieved at these levels. The author defines a project stakeholder as a group of people or a person who has vested interest in the project’s success as well as the environment in which the project operates. It means that even the environmental protection agencies are stakeholders. The citizens of a country are stakeholders to a construction project of a highway. Stakeholder for this research study will include any persons, group of people or organizations involved in the construction project with some vested interest including the citizens of the international community if found to qualify as stakeholders. Construction projects worldwide are characterised by delays which is always accompanied by time and cost overruns. The project delays have devastating effects on various stakeholders such as on consultants, owners, financiers, and the contractor. These stakeholders are mostly affected in terms of litigation, growth in adversarial relationship, arbitration, distrust and cash-flow problems. Project delays contribute a lot, through various ways, to the failure of most construction projects. It puts a lot of strain in the management of the projects. In most cases, project progress reports report project delays with no specific reference to the causes (Haseeb, Xinhai-Lu, Bibi, Maloof-ud-Dyian & Rabbani., 2011). It is important to find the causes of project delays in order to develop strategies for eliminating them. This forms part of risk management. Lack of preparedness in managing any risks associated with a project constitutes poor project management. It is therefore important to identify every source of risk and make preparations on how they can be mitigated. Delays in large construction projects have been found to be a major problem. They cost the job owner and the contractor a lot of money. Although some of the causes are universal, construction projects are different and the causes of delay may vary (Haseeb, Xinhai-Lu, Bibi, Maloof-ud-Dyian & Rabbani., 2011). In the United Kingdom for example, there are various large construction projects going on (Construction News, 2013). A project manager may have assessed similar projects from different regions and countries to find out the risks associated with project delays, the causes of project delays, and how to manage these delays. This is an important step, but as the project continues, different activities, situations and cost changes affect the project. This in turn affects the causes of delay. In the UK for example, workers are a source construction delays. According to Terry (2013), workers take in excess of 130 million days sickness absence every year. 330,000 workers drop out of employment every year. These cost the state and the employer, and have a drastic impact on the society. The government has worked over several years to find out ways to reduce the levels of sickness absence and related costs. It has currently published proposals for reform which may change the approach given to sickness absence in the UK. Employers are expected to change their role and be more involved in assisting employees to return to work as soon as possible when they are able to return, and in rehabilitation. These new recommendations are expected to be introduced in the next 12-18 months (Terry, 2013). This project management plan focuses on identifying the role of stakeholders in project delays and increases in cost in the transport sector. There are large projects in the UK. Most large construction projects are long term and take several years even up to 20 years (Terry, 2013). Identification of the impact of stakeholder on project delay and increased cost will help in overall management of the long term projects. It will also contribute to the successful completion of the project. It will produce important information for other project managers who will be involved in similar or related projects. This also forms part of learning. In project management, risk management is continuous. This project management plan will also help in conducting research that represents management of newly identified construction risks. Analysis of the impact of stakeholder on project delays and increased cost will also show the importance of stakeholder involvement in project management, and provide new ideas on how their relationship with the organization can be well managed. In identification of stakeholder impact, the research study could also investigate if the recommendations developed by the UK government have been implemented and assess the level of impact of employee sickness absence. The research will achieve its aim through analysis of two case studies. The two selected construction projects case studies are, Stafford Area Improvement Programme and London Highways Alliance Contract. Research Questions: Who are the stakeholders of each construction project? What are the factors contributing to project delays and increased costs? Which stakeholders contribute to these factors and how? What is the effect of the situation caused by the delay and increased cost to the whole project’s success? How do project delays and increased project cost affect the management and success of the projects? Are the project managers aware of the government recommendations made about employee sickness absence? If they are, have these recommendations been implemented? What do the managers think about these recommendations in reducing project delays? Aim: To find out the impact of stakeholder on project delays and increased costs Objectives: Locate the Construction projects’ headquarters or main management site Seek permission to conduct research Identify the people and organizations involved in the construction projects Classify the people to determine the stakeholders to the projects Find out the roles of each stakeholder Find out the project delays or areas where there are delays within the two projects Find out areas where there are increased costs or factors that have contributed to increased costs Find out the role each stakeholder plays in causing project delay and increased cost Analyse the negative impact of project delay and increased costs on the whole project Analyse the role of stakeholder engagement in the management of the two construction projects (Consider the impact of the delayed projects on the financiers, other stakeholders and the success of the project) Determine the impact of stakeholder on project delays and increased costs To find out if recommendations made by the UK government concerning employee sickness absence have been implemented If the recommendations have been implemented, to find out the effect these recommendations have on project delay and increased costs. Methodology This will be a qualitative case study Primary source of data: Data will be collected through case study analysis. This will involve development of appropriate questionnaires to be presented to the project managers in the two construction projects. There are managers at different levels and sections. The questionnaire will be given to all of the managers. It means every department within the two construction projects have to be identified. Secondary source of data: Case study analysis will also be done by identifying sources of project delays and increased cost from secondary data sources (Tellis, 1997). Data Analysis: Information will be classified based on the construction project. Under each construction project the role of each stakeholder, relationship to project delays and increased cost and risks associated with such delays will be described. From this, an analysis can be done to determine the impact of stakeholder on project delays and increased cost. It will help in understanding the importance of stakeholder relationship management in a project. It will also show the role the stakeholders play in causing project delays and the risks associated with them (Tellis, 1997). The table below gives a brief summary Stakeholder Areas of increased costs and project delays Stakeholder role in project delay and increased costs Risks associated with such delay or increased costs Impact of such risks on the success of the whole project Conclusions Stafford Area Improvement Programme London Highways Alliance Contract Another area of analysis will focus on the impact of government recommendations on increased costs and project delays. Case study evidence obtained from questionnaire answers will be used to determine the effect of government recommendations about employee sickness absence. This will be achieved through an analysis of managers’ perceptions if in case they are found to have been implemented. Dissertation Outcomes It is expected of this research study to show the sources of project delays, contributions made by stakeholders to project delays, and risks associated with these project delays and increased costs. Data analysis is expected to produce an understanding of the importance of stakeholders to a project. Most importantly, it will reveal the relationship between the stakeholders and the sources of delays and increased projects costs, highlighting areas that need specific types of management resources and strategies to ensure effective and successful management of the construction projects to completion. References Construction News, 2013, UK Transport News. Retrieved on 12th March 2013 from: http://www.cnplus.co.uk/news/sectors/transport/---D2 Haseeb, M., Xinhai-Lu, Bibi, A., Maloof-ud-Dyian, and Rabbani., W., 2011, Problems Of Projects And Effects Of Delays In The Construction Industry Of Pakistan. Australian Journal of Business and Management Research. 1(5): 41-50. Olander, S., 2006, External Stakeholder Analysis in Construction Project Management. Doctoral Dissertation. Retrieved on 12th March 2013 from: http://www.sbuf.se/ProjectArea/Documents/ProjectDocuments/D3ACFBE9-0622-43FE-8BFC-F313FD2B25AB/FinalReport/SBUF%2011346%20Slutrapport%20Doktorsavhandling%20External%20Stakeholder%20Analysis%20in%20Construction%20Management.pdf Tellis, W., 1997, The Impact Level Of These Factors On Construction Duration Can Be Different From This Project To Another Project Application Of A Case Study Methodology. The Qualitative Report, 3 (3). Terry, A., 2013, Transport Sector Update: General. Retrieved on 12th March 2013 from: http://www.eversheds.com/global/en/what/articles/index.page?ArticleID=en/Transport/Transport_Sector_Update_General_2013---D3 Read More