Effect of stakeholder management on construction project execution at a selected site in the Cape Metropolis

Abstract

Projects and their execution have been with the human race ever since we started building homes and other structures. This has primarily been predominantly the preserve of engineering projects with infrastructure construction dominating the space dealing with projects. The definition of a project as an undertaking with clearly defined objectives to be completed within specific time, budget, quality and scope, has attracted attention from other disciplines. There is a significant increase by the industry in general to resort to management-by-project as a solution to well organised production systems. Added to this is the maximisation of the scarce resources for all production and or operational systems, making management-by-projects the most efficient approach to doing business. The emergence of this resource-saving approach has been complemented by advancement in technology facilitating faster and more effective execution of tasks. Even though management-by-projects (projectification) has been broadly accepted in the industry, construction project execution failure rate has remained considerably high wavering between 47% - 52%. This failure rate, in executions managed by qualified and experienced industry relevant engineers, artisans and technicians. The Project Management Institute (PMI), the umbrella body for the project practitioners identified 10 Project Management Knowledge Areas listed in the Project Management Book of Knowledge (PMBOK) as a guide to the competencies necessary to reduce if not eradicate project failure rates. This study is premised on the contribution and effect of Stakeholder Management (the 10th item), considering that projects are designed by people, for people and implemented by people. The descriptive research design was used complemented by mixed research methodology intending to explore both breadth and depth in the understanding of the phenomenon. Structured questionnaires were administered on the project practitioners from which the findings indicate that the human element is the single most critical success factor which needs appropriate attention. The implication is that stakeholders can break or make a project.