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The organisation and stakeholders

Now we’ve looked at potential classifications, we can use these as a starting point to define the project charter.

The charter is used at the beginning of the process, to identify the stakeholders, their responsibilities and relationships, as well as the organisational strategy of the project.

A stakeholder is anyone who has an interest in the process or outcome of a project. In a typical construction project, any or all of the following may be a stakeholder:

  • Client

  • Main contractor

  • Designers

  • Subcontractors

  • Employees

  • Local authorities

  • End users

  • Professional bodies

  • Local residents

  • Local business owners

  • Politicians

Stakeholder categories

Project stakeholders in the construction sector can be classed into four categories:

  • Direct stakeholders are considered as those directly involved in the project. They include the client/project sponsor, the construction/project managers, project team members, financial service providers, material and equipment suppliers, internal and external consultants, site personnel, contractors and subcontractors.

  • Indirect stakeholders are those who do not have a direct link with the project. They include licensing and inspecting organisations, professional bodies, national and local government, and technical institutions.

  • Positive stakeholders are considered as those who are likely to impact on a project. These individuals or groups can also be classed as direct stakeholders and stand to gain from the success of the project. An example could be the business involved in the project, which stands to benefit financially.

  • Negative stakeholders are known to have an unfavourable impact on a project. They are individuals and groups not directly involved in a project, but they are still affected by it in some way. An example would be a group of local residents with concerns about the loss of a public area to a new project.

Your task

Can you identify any individual or group who may have been directly or indirectly involved as a stakeholder in any project you have undertaken?

Considering the categories set out above, where do think they would fit?

Discuss their roles in the project with your fellow learners.

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This article is from the free online course:

The Importance of Project Management in the Global Construction Industry

Coventry University