CHAPTER ONE

INTRODUCTION

1.1.      Background of the Study

The construction industry relies on a network of stakeholders including government agencies, clients, contractors, consultants, suppliers, subcontractors, and local communities.  Over the years, scholars have defined the phrase “Stakeholders” in different lights; for instance, Rahman, Ali, Malik, Ahmad and Asmi (2017) classified them as “any group or individual who can affect or is affected by the outcome or achievement of a project objective.” Stakeholders contribute and share their experiences, knowledge, and insights to support the project throughout its life cycle and therefore it is crucial to capture their input. However, before initiation of the project, stakeholders need to be identified.

According to Prabhu (2016), stakeholders are categorized into internal and external groups. Internal stakeholders are directly involved in an organization’s decision-making process, including owners, customers, suppliers, and employees. External stakeholders, on the other hand, are individuals or entities impacted by the organization’s activities, such as neighbors, local communities, the general public, and local authorities. In the construction sector, there has traditionally been a strong focus on managing internal stakeholder relationships, such as procurement and site management. Conversely, external stakeholder relationships have often been perceived as the responsibility of public officials, governed by rules and legislation related to facility development. However, external stakeholders are known as clients, contractors as well as connected state mechanisms (Project Management Institute, 2017).  Their relationship is characterized by collaboration, communication, and coordination to ensure project success. The construction industry is complex due to the involvement of multiple parties, including clients, contractors, subcontractors, regulatory bodies, local communities, and environmental organizations. Effective stakeholder management is a critical success factor for projects. Stakeholder management is acknowledged as a means of increasing the propensity for successful delivery of construction projects,, (Molwus, Erdogan and Ogunlana, 2020). However, the increasing complexity in the relationships among stakeholders and their diverse characteristics, including power and interests makes the management of stakeholders increasingly challenging, (Nguyen and Mohamed, 2020). Different stakeholders may have competing expectations that might create struggles in the development of the project. They may likewise impose some forms of impact on the project, its output, as well as the project team so as to attain a range of results that fulfil tactical commercial goals or supplementary requirements. (Dagli, 2018)

As clearly emphasized by (Helen, Emmanuel, Lawal, and Elkanah, 2015), relationship and continuous coordination between stakeholders is paramount throughout the life cycle of projects to enhance the performance of projects. Stakeholders can overcome the construction problems by identifying and assessing the most prevalent problems in the industry. In developing countries such as Nigeria, stakeholder management practice is weak. The weakness of this practice often inhibits project goals in terms of time and cost overruns, disputes and lack of trust among the stakeholders, (Ola, Alayande, Olarewaju and Oyewobi, 2021).

In Nigeria, many construction projects could not achieve the set goals, due to weaknesses in stakeholder management, leading to a poor relationship, poor delivery, and disputes among the stakeholders (Ekung, Okonkwo and Odesola, 2014). The majority of studies conducted in Nigeria concentrate on the obstacles hindering effective stakeholder management in diverse infrastructure projects. These obstacles encompass a range of issues such as: inadequate understanding of stakeholders’ needs and expectations; uncooperative attitudes among stakeholders; failure to identify key stakeholders; failure to anticipate potential conflict areas; insufficient knowledge of stakeholder management among project managers (Zarewa, 2019); inconsistency in the stakeholder management process; lack of clarity or agreement regarding stakeholder management responsibilities (Molwus, 2014); civil unrest and political instability; changes in laws and regulations; delays in site handover; delays in inspection and approval processes; financial challenges; and failure to adhere to project specifications (Yahaya, Kasimu, Shittu and Saidu, 2018).

There is no doubt that effective stakeholder management is crucial for the success of construction projects in Nigeria. By understanding stakeholder dynamics and implementing tailored strategies, projects can overcome issues such as delays, disputes, and poor delivery. Enhanced stakeholder management practices not only build trust but also foster sustainable development and drive socio-economic growth. Therefore, there is an urgent need for research and practical interventions to improve stakeholder management in the Nigerian construction industry.

1.2.    Statement of the Problem

Ideally, the construction industry should be able to effectively manage stakeholders in public building projects to ensure their interests are addressed, leading to successful project outcomes and community satisfaction. However, the current situation reveals that stakeholder management in public building projects in Anambra State is not optimally effective, resulting in various challenges such as conflicts, delays, and suboptimal project performance.

Despite these efforts, the problem persists, as evidenced by ongoing project delays, cost overruns, and dissatisfaction among stakeholders. The ineffective stakeholder management negatively impacts project outcomes, leading to budgetary constraints, compromised quality, and strained relationships among project stakeholders.

This results in diminished public trust, increased project risks, and hindered socio-economic development within Anambra State. The urgency of finding a solution to this problem stems from the potential long-term consequences, including diminished public confidence in government projects, reduced investment attractiveness, and hindered infrastructure development in Anambra State. Therefore, there is a critical need to investigate and address the root causes of ineffective stakeholder management in public building projects. While similar challenges may have been encountered in other contexts, there is a lack of comprehensive research specifically focusing on stakeholder management in public building projects in Anambra State. Additionally, existing approaches to stakeholder management may not adequately address the unique socio-cultural and political dynamics of the region.

Against this background, the study aims to comprehensively understand the  effectiveness of stakeholder management in public building projects in Anambra State  and to explore the roles of each stakeholder needed for the successful completion of public buildings projects. This endeavor is geared towards ensuring the successful delivery of public infrastructure projects to benefit all stakeholders involved.

1.3.    Aim and Objectives

1.3.1. Aim of the Study

The aim of this study is to assess the effectiveness of stakeholder management needed on project performance in the construction of public buildings in Anambra state, with a view of prefering practical solutions to enhance stakeholder engagement and optimize project outcomes.