STAKEHOLDER INVOLVEMENT IN CONSTRUCTION OF BUILDING PROJECTS

AS A SOLUTION TO PROJECT FAILURE. A CASE STUDY OF ABANDONED

BUILDING PROJECTS IN GHANA.

By

Mercy Adjoa Adjei-Forson (B.Sc. Business Administration)

A thesis submitted to the Department of Construction Technology and Management, Kwame

Nkrumah University of Science and Technology, Kumasi in partial fulfillment of the

requirements of the awarded degree of

MASTER OF SCIENCE IN PROJECT MANAGEMENT

November, 2019

DECLARATION

I hereby declare that this submission is my own work and that, to the best of my knowledge and

belief, it contains no material previously published or written by another person nor material

which to a substantial extent has been accepted for the award of any other degree or diploma at

Kwame Nkrumah University of Science and Technology, Kumasi or any other educational

institution, except where due acknowledgement is made in the thesis.

…………………………….. ……………………………… ………………………

Name of Student and ID Signature Date

Certified by

…………………………….. ……………………………… ………………………

Name of Supervisor Signature Date

Certified by

…………………………….. ……………………………… ………………………

Name of Head of Department Signature Date

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ABSTRACT

Abandoned projects have become an issue of major concern to all stakeholders in Ghana.

Millions of resources are wasted in construction projects only for the projects to be abandoned

for one reason or the other. In the mist of the above, stakeholder involvement in the project

delivery has been hailed by many as a step to reduce some uncertainties/risks in construction

projects and ensure successful completion of those projects. The current study sought to assess

stakeholder’s involvement in building construction projects as a solution to project failure in

Ghana using a case study of four abandoned building projects in the Ashanti Region of Ghana.

Using a case study research design and qualitative research strategy interviews were held with

the client, consultants and contractors who were involved in delivery of projects. The data

collected was analyzed using content and thematic analysis. The results revealed that, in most

cases the project were planned and executed by the client and the contractor without the

involvement of majority of the stakeholders. The major causes of failure of the projects

included: lack of involvement of some of the major stakeholders in the decision making, political

interference, poor communication among the project parties, unrealistic project appraisal (cost

and time), inadequate funds to complete the projects and corruption. It was also found from the

results of the study that most of the stakeholders were not involved in the decision making at the

planning and execution stage. The contractor selection was done by the client. Moreover ,

political interference played a major role in the selection of the contractor. As a results of the

lack of involvement of majority of the stakeholders in the project delivery, the following were

some of the resulting effects or consequences: setting of unrealistic project targets, delays in

project execution, frequent variations leading to cost overruns, inflation of project cost, poor

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planning and poor supervision. Keywords: Stakeholder, Resources, Cost, Time, Contractor,

Client

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TABLE OF CONTENT

ContentsDECLARATION..............................................................................................................................i

ABSTRACT....................................................................................................................................ii

TABLE OF CONTENT..................................................................................................................iv

LIST OF TABLES.......................................................................................................................viii

LIST OF FIGURES........................................................................................................................ix

LIST OF ABBREVIATIONS..........................................................................................................x

ACKNOWLEDGEMENT..............................................................................................................xi

DEDICATION..............................................................................................................................xii

CHAPTER ONE..............................................................................................................................1

GENERAL INTRODUCTION.......................................................................................................1

1.1 BACKGROUND OF THE STUDY..........................................................................................1

1.2 STATEMENT OF THE PROBLEM.........................................................................................3

1.3 AIM AND OBJECTIVES.........................................................................................................4

1.3.1 Aim......................................................................................................................................4

1.3.2 Objectives............................................................................................................................4

1.4 RESEARCH QUESTIONS.......................................................................................................4

1.5 SCOPE OF THE STUDY..........................................................................................................5

1.6 METHODOLOGY....................................................................................................................5

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1.7 SIGNIFICANCE OF THE STUDY..........................................................................................5

1.8 STRUCTURE OF THE THESIS...............................................................................................6

CHAPTER TWO.............................................................................................................................7

LITERATURE REVIEW................................................................................................................7

2.1 INTRODUCTION.....................................................................................................................7

2.2 CONCEPTUAL REVIEW......................................................................................................7

2.2.1 Project Performance............................................................................................................7

2.2.2 Understanding Project Success And Failure.......................................................................8

2.2.3 Abandonment Of Public Building Projects In Ghana.......................................................11

2.2.4 Stakeholders Defined........................................................................................................12

2.2.5 Stakeholder Classification................................................................................................13

2.2.6 Construction Projects Stakeholders..................................................................................15

2.2.7 Role Of Stakeholders In Construction Project Delivery...................................................16

2.2.8 Relevance Of Stakeholders In Construction Project Delivery..........................................19

2.2.8.1 Benefits For The Project Outcome............................................................................20

2.2.8.2 Social Benefit.............................................................................................................21

2.3 THEORETICAL REVIEW.....................................................................................................23

2.3.1 Participation Theory..........................................................................................................23

2.3.2 Participatory Planning And Management........................................................................24

2.3.3 Procedural Justice Theory.................................................................................................25

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2.4 EMPIRICAL REVIEW...........................................................................................................28

2.4.1 Challenges With Stakeholder Management In Project Delivery......................................28

2.5 THE CAUSES OF FAILURE/ABANDONMENT OF THE PROJECTS..............................29

2.6 INVOLVEMENT OF THE VARIOUS STAKEHOLDERS IN THOSE PROJECTS...........30

2.7 THE EFFECTS OF THE STAKEHOLDERS’ INVOLVEMENT ON THE PROJECT

SUCCESS......................................................................................................................................31

CHAPTER THREE.......................................................................................................................32

RESEARCH METHODOLOGY..................................................................................................32

4.1 INTRODUCTION...................................................................................................................32

4.2 RESEARCH DESIGN, APPROACH AND STRATEGY.................................................32

4.3 POPULATION........................................................................................................................33

4.3.1 Sample And Sampling Procedures....................................................................................33

4.3.2 Data Collection Techniques..............................................................................................33

4.3.2.1 Sources Of Data.........................................................................................................33

4.3.2.2 Data Collection Instrument (Primary Data)...............................................................33

4.3.2.3 The Fieldwork............................................................................................................34

4.3.3 Data Analysis Techniques.................................................................................................34

4.4 ETHICAL CONSIDERATIONS.............................................................................................34

CHAPTER FOUR.........................................................................................................................35

RESULTS AND DISCUSSION....................................................................................................35

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4.1 INTRODUCTION...................................................................................................................35

4.2 BACKGROUND OF INTERVIEWEE...................................................................................35

4.3 BACKGROUND OF THE ABANDONED PROJECTS........................................................36

4.4 STAKEHOLDERS INVOLVED IN THE PLANNING AND EXECUTION OF THE

ABANDONED BUILDING PROJECTS......................................................................................39

4.4 FACTORS CONTRIBUTING TO THE ABANDONEMENT OF THE PROJECT..............41

4.4.1 Political Interference.........................................................................................................42

4.4.2 Poor Stakeholder Management.........................................................................................42

4.4.3 Insufficient Funds For Project Delivery............................................................................43

4.5 EFFECTS OF THE STAKEHOLDERS’ INVOLVEMENT ON THE PROJECT SUCCESS.

.......................................................................................................................................................44

CHAPTER FIVE...........................................................................................................................46

SUMMARY, CONCLUSION AND RECOMMENDATION......................................................46

5.1 INTRODUCTION...................................................................................................................46

5.2 SUMMARY OF FINDINGS...................................................................................................46

5.3 CONCLUSION........................................................................................................................48

5.4 RECOMMENDATIONS.........................................................................................................48

5.5 FUTURE RESEARCH DIRECTIONS...................................................................................49

REFERENCES..............................................................................................................................50

APPENDIX A- INTERVIEW GUIDE..........................................................................................59

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LIST OF TABLES

Table 1. 1 Structure and Content of the Thesis...............................................................................6

Table 2. 1 Value Of Abandoned Projects In Ghana At 2017........................................................12

Table 2. 2 Stakeholders In Projects...............................................................................................18

Table 4. 1Years of working experience of Interviewees...............................................................36

Table 4. 2 Background of abandoned building projects................................................................37

Table 4. 3 Stakeholders involved in the project delivery..............................................................40

Table 4. 4 Factors Contributing To The Failure Of The Projects..................................................43

Table 4. 5 Effects Of Poor Stakeholder Involvement On The Project Delivery...........................45

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LIST OF FIGURES

Figure 2. 1: Different Project Stakeholders...................................................................................14

Figure 4. 1 Current status of abandoned 6-unit classroom block at Kumasi (Project A)..............37

Figure 4. 2 Abandoned office building at substructure level (Project B)......................................38

Figure 4. 3 Abandoned classroom block (Project C).....................................................................39

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LIST OF ABBREVIATIONS

MMDAs: Metropolitan, Municipal and District Assemblies

PMBOK: Project Management Book

CMP: Construction Project Management

CME: Construction Management And Economics

ESM: External Stakeholder Management

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ACKNOWLEDGEMENT

I am exceptionally grateful to my supervisor, Professor Joshua Ayarkwa whose useful

comments, constructive criticisms and suggestions have been instrumental in the success of this

work. I am most grateful.

I also appreciate the immense contribution to the study respondents who spent their busy

schedules to grant the interview. May God bless each and every one of them

Finally, to all my friends, collegues, families and loved ones who contributed in diverse ways

towards the success of this project work; I say God bless you all.

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DEDICATION

I dedicate this work to Almighty God for his grace, provision and protection give me throughout

my course. Also, to my immediate family being my supportive husband; Samuel who always

supported and encouraged me and my wonderful children Aseda and Aba

Finally, to my siblings and the entire family for their encouragement throughout the course to

grace the family with respect to higher education.

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CHAPTER ONE

GENERAL INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Fewings (2005) portray a partner as individual, firm or specialists is enthused about results of a

project needs to know the frameworks required in that task. In development venture, partners

more often than exclude experts, the contractual worker, the customer, sub-contracting firms,

venture lenders, end clients of an office among others. In development ventures, there is option

for task partners to reasonably express their prerequisites during the different periods of the

undertaking. Sufficient and suitable inclusion of all partners is predictable to achieve a total

meaning of the task's degree, which thus advances partners' fulfillment (Anderson et al., 1990).

This is mostly significant in the open development segment, where undertakings serve networks

first, with their fulfillment and solace as the principle concerns; private segment ventures, on the

other hand, frequently target profiting financial specialists or proprietors. Open advancement

exercises should reflect their accomplices' needs and requirements, which can't be practiced

without incorporating all accomplices in portraying the assignment from its starting periods.

Upon venture finish, it is unreasonable to look for partners' suppositions about their fulfillment

with the result of a task if their association before that point was constrained.

Divided endeavor definition can happen when the commitment of in any event one accomplices

is intentionally or incidentally neglected (Fageha and Aibinu, 2014), allowing other social

events' commitments to order. Failure to consider and clarify accomplices' wants, requirements

and stresses at a starting time in an assignment can achieve extraordinary perils being dismissed,

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and may provoke inconveniences in running the endeavor, realizing awful appearing (Reiss,

Hoffman and Landau, 2005).). Poor incorporation of accomplices when describing adventure

augmentation builds up a risk, as it may provoke exorbitant changes during assignment

execution.

Errand give up is an ordinary issue in the Ghanaian improvement industry and the wonder is

consistently reactions of broken strategies first and foremost occasions of an endeavor. As

demonstrated by the Auditor General's report, in 2017 gave up and unused endeavors in at any

rate 40 Metropolitan, Municipal and District Assemblies (MMDAs) in Ghana cost the state over

GH¢ 30 million out of 2017 (Auditor General's Report, 2017). Palatable endeavor checking and

adventure definition in the pre-adventure masterminding stage using the commitments of the

various accomplices could fix the issue if fittingly moved closer.

Assaf and Al-Hejji (2006) saw the palatable front-end undertaking, masterminding with clear

adventure scope definition can moderate the potential for expense overpower, inadequate

assignment organizing and poor expansion definition can incite exorbitant changes, delays, alter,

cost attacks, plan overpowers and adventure disillusionment. Changes during errand execution

every now and again reflect the vulnerabilities that occur during the starting times of an endeavor

(Assaf and Al-Hejji, 2006). Changes may happen due to outside effects, for instance,

inconsistent money related cycles, esteem differences, the significantly forceful industry and

corruption. Various changes may be referenced during the improvement orchestrate, rising up

out of internal effects, for instance, differentiates in accomplices' perspectives. The essential

clarification behind such change solicitations is either poor errand definition or a poor idea of

how the work should be dealt with.

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Accomplices are those social events which affect the assignment. An assignment's accomplices

are not confined to the endeavor gathering limits; there are various outside accomplices whose

interests could be related to or in struggle with the endeavor (Wang and Huang 2010; PMBOK®

Guide 2010). Thusly, the relationship of stakehoders can be essential to broaden

accomplishment.

1.2 STATEMENT OF THE PROBLEM

The Public Procurement Act of Ghana is to ensure duty and straightforwardness of open

resources. The confirmation of a broad number of rejected and deserted development venture the

country over implies that the poor partners incorporation in the arranging and execution of the

exercises.

Bourne and Walker, (2005) estimated that there is the need to recognize partners' vitality and

mapped in like way with a particular ultimate objective to understand their potential impact.

Appropriate methods could then be approved to improve the positive and limit any negative

effect. His confirmation is in simultaneousness with Lim et al, (2005) in his settlement that

powerlessness to respect partners' effect has incited inestimable assignment frustrations, on a

very basic level in light of the fact that development partners' have the advantages and capacity

to stop development venture.

As shown by Olander and Landin (2005) in the midst of the earlier decades, the development

venture worldwide has a poor record of stakeholders‟ the executives, and the development

venture in Accra the capital of Ghana isn't a brilliant case. Additionally, Jergeas et al (2000)

communicated that the convincing administration of assignment partners is considered as a

fundamental key to extend accomplishment Jergeas conveys stress that "the partners may not be

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satisfied by the endeavor's outcome." In context of this issue explanation, the investigator

attempts to recognize the impact of poor partners' commitment in arranging and realizing

development venture. The present investigation looks to survey partner's inclusion in structure

development extends as an answer for venture disappointments in Ghana.

1.3 AIM AND OBJECTIVES

1.3.1 Aim

The aim of this study was to assess stakeholder’s involvement in building construction projects

as a solution to project failures in Ghana using a case study of abandoned projects.

1.3.2 Objectives

In other to achieve the aim above, the following specific objectives will be pursued:

(i) To identify the stakeholders involved in the planning and execution of the abandoned

building projects

(ii) To critically assess the causes of failure/abandonment of the projects.

(iii) To investigate the extent of involvement of the various stakeholders in those projects

(iv) To examine the effects of the stakeholders’ involvement on the project success.

1.4 RESEARCH QUESTIONS

The current study is designed to find answers to the following questions:

(i) Who were the stakeholders involved in the planning and execution of the abandoned

building projects?

(ii) What were the causes of failure/abandonment of the projects?

(iii) To what extent were the various stakeholders involved in those projects?

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(iv) What are the effects of the stakeholders’ involvement on the project success?

1.5 SCOPE OF THE STUDY

This study was centered on assessing stakeholder’s involvement in construction projects as a

solution to abandoned projects in Ghana. The consultants, client, and contractors, were selected

for the study. Geographically, the study used a case study of some abandoned projects in the

Ashanti region. According to the Auditor General’s report (2017) the cost of delayed/abandoned

projects in this regions was Ghc1,153,074.00.

1.6 METHODOLOGY

The study commenced with an extensive literature review of the participation of stakeholders in

project planning and delivery. The source of this data was through journal publications, books,

previous thesis, internet sources among others.

Following this stage, structured interview was conducted to collect primary data from the study

respondents. The study respondents consisted of the key stakeholders involved in the planning

and implementation of construction projects; Clients, Consultants and the Contractors. In this

study, qualitative method was employed in the data analysis. The data analysis was done using

Content and thematic analysis. Based on the findings, recommendations were made.

1.7 SIGNIFICANCE OF THE STUDY

The current study will help to uncover the causes of abandoned projects and the relevance of

stakeholder involvement in addressing the problem of project failures. The findings of the study

will help in devising appropriate strategy to addressing the problem.

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In addition to the above, study will serve as the basis for future studies to be carried out on

stakeholder management in project execution. This study will help change some of the

ineffectual methods for stakeholders' inclusion in projects delivery.

1.8 STRUCTURE OF THE THESIS

The thesis will be structured into five chapters as summaries in the Table below:

Table 1. 1 Structure And Content Of The Thesis

Chapter No. Titles Content

1 General Introduction Background of the study, research problem statement, Aims and objectives, research question, methodology, scope and significance of the study.

2 Literature review Review of literature on the participation of stakeholders in project planning and implementation.

3 Research Methodology Explanation of the study population, sample size, sampling technique, data collection and analysis.

4 Results and Discussion Presentation of the results of the study and discussion of the key findings in relation to literature.

5 Conclusion and Recommendation

Conclusions, recommendations, further studies

Source: Author, 2019

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CHAPTER TWO

LITERATURE REVIEW

2.1 INTRODUCTION

This chapter presents the results of the conceptual, theoretical and empirical review on

stakeholders and their influence on construction project management. Specifically, section 2.2

reviews literature on key concept such as project success and failure, construction project

stakeholders, relevance of stakeholders and their role in project delivery. Key theories relevant to

the study are also presented in section 2.2. Conceptual review of literature on the challenges of

stakeholder management as well as effects of stakeholder involvement on project success have

been presented.

2.2 CONCEPTUAL REVIEW

2.2.1 Project Performance

The ultimate importance of project performance is achieved through avoiding the project’s

failure to keep within cost budget, failure to keep within time stipulated for approvals, design,

occupancy and failure to meet the required technical standards for quality, functionality, fitness

for purpose, safety and environment protection (Flanagan and Norman 2003). Project

performance ensures that enterprises maximise on profitability, minimise the consequences of

risky and uncertain events in terms of achieving the project’s objectives and seizes the chances

of the risky events from arising (Kululanga and Kuotcha, 2010). The benefits of project risk

management for small businesses lie at the point of time and budget project advantages. It is

understandable why there are as many models of project risk management as general risk

management schemes.

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The criteria of project performance for the project will be cost, time and quality which are basic

elements of project success (Chan et al., 2002). Quality is all about the entirety of features

requisite by a product to meet the desired need and fit for purpose. To ensure the effectiveness

and conformity of quality performance, the specification of quality requirements should be

clearly and explicitly stated in design and contract documents. Project performance measure for

this study will be defined in terms of cost, time, quality and profitability, as small and medium

enterprise focus on earning returns over project investment.

2.2.2 Understanding Project Success And Failure

Even if the project manager is able to deliver the project within the estimated time, budget and

scope, the project will not be regarded as successful if it does not consider the needs and

expectations of a wide range of stakeholders (Bourne and Walker 2005). Project success and

failure is mainly related to stakeholders’ expectations from the project and their perceptions of

the value created by the project (Bourne and Walker 2008). Therefore, to ensure a well-defined

project scope, all stakeholders should have an adequate input in the process. This will increase

the chance of achieving a successful project and stakeholders’ satisfaction.

Defining and analysing project success is a difficult task. According to Liu and Walker (1998)

project success: Is a topic which is frequently discussed and yet rarely agreed upon. The concept

of project success has remained ambiguously defined. It is a concept which can mean so much to

many different people because of varying perceptions, and leads to disagreements about whether

a project is successful or not.

However, understandings of project success are evolving (Jugdev and Müller 2005). Researchers

have largely stopped seeking a definition of project success and are instead focusing on

investigating the reasons projects fail and the factors believed to contribute to the success or

8

failure of projects’ outcomes. Some criteria that may help in measuring project success, such as

cost, time and quality (The Iron Triangle’s criteria) have also been provided. For instance,

Griffith et al. (1999) developed a project success index for capital facility construction projects,

designed to measure the success of industrial project execution. This index consists of four

variables: budget achievement, schedule achievement, design capacity and plant utilisation.

Recently, project management researchers have shifted towards a more people-focused

perspective (Mazur et al. 2013). Ika (2009) studied the understanding of project success,

separating the trends into three periods. During the period of the 1960s and 1980s, the literature

was more theoretical, and provided a list of the critical project success factors including time,

cost and quality. Atkinson (1999) argued that success should not be measured using these criteria

alone, as their measurement reflects the progress of the project, making them best used as a

method of controlling rather than a measure of success. Atkinson added that other criteria could

be used to measure project success, such as information system and benefits of both organization

and stakeholder community.

This notion is supported by Ika (2009) study, which illustrates that the 1980s to 2000s period

witnessed a burgeoning of empirical research. In this period, researchers’ understanding shifted

from project management success to project success, and more criteria were added to those of the

iron triangle, including client satisfaction, benefits to the organization, end user satisfaction,

benefits to stakeholders and benefits to project personnel. Research in the 21st century is often

conducted from a strategic perspective. Researchers introduce other success criteria in addition

to the iron triangle, including strategic objective of client organisation and business success, end

user’s satisfaction, benefits to stakeholders, and benefits to project personnel and symbolic and

rhetoric evaluation of success and failure. Based on this view, success would be measured by the

9

project teams’ interpersonal and behavioural skills and by stakeholders’ satisfaction (Atkinson

1999; Jugdev and Müller 2005). Moreover, it is now widely agreed that project success should

be measured holistically, taking into account the operational and strategic aspects of success

(Müller and Turner 2007).

Ashley et al. (1987) Pilot study carried out on successful projects in the US the study showed the

success criteria most frequently used to measure construction project success, which are:

Budget performance

Schedule performance

Client satisfaction

Functionality

Contractor satisfaction

Project manager/team satisfaction

Chan et al. (2002) proposed a model for assessing the success of a design and build project. The

model classified the project into three phases: pre-construction, construction and post

construction. Pre-construction success criteria are:

Objective measures

Time

Cost Subjective measures

Quality

Technical performance

Satisfaction of key project participants

Turner and Müller (2006) identified project success criteria:

End user satisfaction

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Supplier satisfaction

Team satisfaction

Other stakeholder’s satisfaction

Performance in terms of time, cost and quality

Meeting user requirements

Lam et al. (2007) grouped success criteria for design and build project into 11 components:

Time

Cost

Quality

Functionality

Health

Safety

The satisfaction level of participants on project expectations*

Claims performance

Aesthetics

Learning value

Professional image

2.2.3 Abandonment Of Public Building Projects In Ghana

Abandoned public project is one major problem facing the country. The Auditor General’s report

(2017) on abandoned and unused projects in forty Metropolitan, Municipal and District

Assemblies (MMDAs) in Ghana reviewed that those project cost the state over GH¢ 30 million

in 2017. The report revealed that among the reasons for the abonnement of the projects were

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failure to pay the contractor; poor workmanship by the contractor making the building unfit for

its purpose; lack of funds among others.

The report further revealed that the management of the Assemblies either did not ensure that the

Contractors operated with performance bonds covering the period of the contracts or enforced

them where they existed. This allowed the Contractors to execute the projects at will or in some

case, abandon them. Table 2.1 shows the estimated cost of the abandoned projects according to

the Auditor General’s report (2017)

Table 2. 1 Value Of Abandoned Projects In Ghana At 2017

Region Value of Abandoned Project

Ashanti Region GH¢1,153,074.00Brong Ahafo Region GH¢8,124,887.00Central Region GH¢1,840,758.00Eastern Region GHc 738,340.00Northern Region GH¢ 264,353.00Upper East Region GH¢ 23,493.00Upper West Region GH¢ 87,523.00Western Region GH¢1,142,544.00Source: Auditor General’s Report, 2017

2.2.4 Stakeholders Defined

Fewings (2019) characterized a stakeholder as one who is enthused about the strategy or

consequence of an assignment. Instance of stakeholders in an improvement endeavor will join

the going with; the client, the focal authoritative specialist, makers, subcontractors, all agents in

any capacity in the endeavor, neighborhood controls, the end customers of the thing, capable

bodies, adjacent inhabitants, close-by business visionaries, administrators and normal social

affairs

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Then again, Management Institute (2008) portrayed stakeholders to be individuals and

affiliations who are viably required in the endeavor, or whose interests might be decidedly or

adversely influenced as an aftereffect of task execution or fruitful venture finish". Venture

partners can likewise be alluded to as people or gatherings who have a stake in, or desire of, the

task's execution (Newcombe 2003).

The Project Management Institute (2004) characterized stakeholders of an undertaking as people

and associations who might be effectively required in a task or whose interest might be

influenced on account of execution as well as culmination of venture.

Stakeholders as defined by Li et al., (2011), alludes to "influencers of the task procedure and/or

deciding results, whose living situations are emphatically or contrarily influenced by the

stakeholders, and who get related immediate and circuitous advantages and/or misfortunes.

2.2.5 Stakeholder Classification

Newcombe (2003) clarifies that the stakeholder arrangement just like a fundamental capacity of

the way toward overseeing stakeholder as it helps to inspect enforceability of undertaking desire

by every stakeholder bunch; whether these gatherings have the way to do as such base on the

force they have; and the conceivable effect of stakeholder desires on task methodology.

He advances elucidated by proposing two techniques for examination that are;

power/predictability matrix together with power/interest matrix.

Olander (2009) battle that there are certain issues connected with it. In the first place, in order to

lead an escalated outside partners‟ examination the relative levels of power and interest ought to

be surveyed on a superior scale than one of high or low. One has power or one has an interest; it

is hard assessing them on a scale.

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As opposed to looking over power and interest it can be more pertinent to assess the level of the

potential impact that external partners have and the probability that impact of a given level will

happen. Therefore, Olander (2009) said that the force/interest framework could be deciphered

into the effect/likelihood network.

As indicated by Olander (2009), a crucial stakeholders social occasion is one without whose

procedure with commitment the endeavor can't get by as a going concern, however discretionary

stakeholders are the people who affect or are influenced by the firm, Stakeholders could

moreover be tested between those that are contracted to give organizations (e.g. Authoritative

laborers, subcontractors, guides) that is in a vital or direct relationship with a relationship; rather

than those that have no contracted obligation or formal change, yet are in a circuitous or helper

relationship with an affiliation (Newcombe 2003). .

Figure 2. 1: Different Project Stakeholders

Source: Yang et al., 2009a

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2.2.6 Construction Projects Stakeholders

One of the significant elements of project management are stakeholders (Biskupek 2016).

Tchórzewski (2013) considers the identification of stakeholders and their role in project as a

decisive factor for the project success or failure. According to ICB (2009) stakeholders can be

named “people or groups who are interested in project success or failure or undergo limitations

which result from the project”. According to PMI (2013) project stakeholders can be defined as:

“an individual, group, or organization, who may affect, be affected by, or perceive itself to be

affected by a decision, activity, or outcome of a project”. According to Freeman (1999)

stakeholders can be divided into inside and outside stakeholders.

Inside stakeholders, are a groups which are called the most important, because they are

influence decision making. They are formally bound with the organization which implement the

project, for example through an employer contract. Outside stakeholder group are people who

aren’t formally members of the organization which implements the project. However, they can

exert a big meaning or they can be under a big meaning of the project. Due to its specification,

the group requires constant supervision of the project manager. Young (2000) single out two

most important stakeholders of each project who are: customer and the producer of the project.

Tchórzewski (2013) proposed a different division of project stakeholders:

white – (the division into inside and outside stakeholders doesn’t matter) people or

institution which can benefit from the project implementation;

black – people or institution (also here the division into outside and inside stakeholders

doesn’t matter) who don’t accept the project implementation.

One of the roles of a project manager is to recognize all stakeholders, establish their expected

benefit or waste and arrange them according to their importance for the whole project. The

15

manager of the project should thoroughly analyze project stakeholders. This process consists of

three stages (Bukłaha, 2007):

stakeholder identification;

preparation of their characteristics, with rating of their power impact;

designing the action strategy in reference to everyone.

2.2.7 Role Of Stakeholders In Construction Project Delivery

In the context of project management, stakeholders’ involvement should reflect their degree of

importance and relevance to the project. In the construction industry specifically stakeholders

include a wide range of entities that directly or indirectly provide support or resistance to the

accomplishment of the project’s objectives (Walker 2000). The degree of stakeholder

involvement affects the ability to reduce uncertainty in the interests of achieving clarity in

defining and controlling the project (Atkinson et al. 2006). Failure to consider and clarify

stakeholders’ expectations and concerns at an early stage in the project can result in

extraordinary risks being ignored and lead to difficulties in running the project, poor

performance, failure or even disaster (Walker 2000; Bryson 2004; Atkinson et al. 2006). A good

project scope definition provided in the pre-project planning stage protects the project from

major sources of delay, cost overrun and rework. This is considered critical to the satisfaction of

stakeholders and the successful implementation of the construction project (Fageha et al., 2016).

Once stakeholders identify their needs and clarify their expectations for a construction project, a

project definition process is implemented. This aims to develop the project’s needs into tangible

processes for achieving the project’s requirements, specifications and alternative solutions to

meet the expectations of the client (Whelton et al. 2002).

16

For the last decade, there have been calls in the literature for identified stakeholders’ needs to be

investigated to determine how they are related in defining and influencing decisions in different

stages of a project (Olander, 2009). According to Fageha et al., (2016), there are also a lack of

guidelines to define stakeholders’ involvement in the different project process steps. Smith

(1973) stated that ‘the concept of development as it applies to social systems involves increasing

differentiations and integrations,

or increasing specialization and coordination’. This statement reveals the importance of

involving all stakeholders in defining the project scope elements according to their speciality and

specific concerns.

Stakeholders’ equity and engagement is crucial in project planning (Fageha et al., 2016).

According to Chinyio and Akintoye (2008), the construction industry needs a comprehensive

approach to engaging stakeholders. Stakeholders’ expectations must be respected and reflected in

the project, and their engagement must be managed according to their importance in the project.

There is a clear need to investigate the ideal involvement of stakeholders for each individual

specialization and to investigate their impact across a project’s life cycle. In particular, their

impact on the pre-project planning process warrants consideration, as this has a significant

influence over the remainder of the project’s life cycle. It is necessary to involve all stakeholders

in defining a project’s scope elements to ensure their successful involvement and improved

project outcomes. Appropriate and sufficient stakeholder involvement and contributions can be

considered determiners of improved project outcomes and the greater chance that stakeholders

will perceive the project as successful.

17

Table 2. 2 Stakeholders In Projects

Stakeholder Group Roles

Client

The customer can be open or private. The primary contrast

between a private development venture and an open undertaking is

that the customer and the recipient are the same in a private

development venture and in the recreation lodging venture the

fundamental initiator is the administration and advantage collects

to the group influenced (Ankukumah, 2017).

Consultant Gives the consultancy counsel to the venture on outlining,

assessing the cost, specialized issues/exhortation (building

guidance electrical, common and so forth) (Ankukumah, 2017).

Contractor Participate in genuine development as indicated by the plans,

particulars, contract records imparted by the pertinent gatherings

(Ankukumah, 2017).

Financier

E.g. UN, IDB, ICRC. Address philanthropic issues while giving

the essential assets to the group venture. Guarantees that the assets

are used for the reason. E.g. on the off chance that a precondition

is forced to spend the cash on group advancement, the giver needs

to ensure that the assets are utilized for this specific movement

(Ankukumah, 2017).

Non-administrative

associations

Gone about as the middle person of the financing body and the

administration. Helped with developing a huge number of

18

transitory havens and changeless homes (Ankukumah, 2017).

Government

The administration leads the pack as far as planning and looking

after controls, strategies and observing the adherence to these.

Setting the measures identifying with the conveyance of lodging

remaking ventures (Harris, 2010)

Recipient

Is the most imperative partner. Since, they are the recipients their

engagement ought to be to convey their necessities/prerequisites of

the significant gatherings required in executing the remaking

lodging venture. Planning the house and supplying work

(talented/untalented) at the phase of development (Ankukumah,

2017).

Civil Society Intentional association in clearing the flotsam and jetsam,

arrangement of work at the development period of lodging

(Ankukumah, 2017).

Community leaders Own property; guarantee that their advantages won't be harmed by

the venture. An area may fear a fall in pleasantry (Harris, 2010).

Source: Terje Karlsen, 2008

2.2.8 Relevance Of Stakeholders In Construction Project Delivery

The inclusion of stakeholders in project delivery comes with it a number of numerous benefits.

These benefits impact the project outcomes. Moreover, there are also social benefits.

2.2.8.1 Benefits For The Project Outcome

Significant benefits come from involving the internal and external stakeholders in a construction

project in defining and planning the scope elements for that project. Generally, the literature

19

highlights that participation results in better management practices through a variety of means.

Where participation and detailed interaction between all project stakeholders is paired with an

understanding of each individual’s interests and concerns in the project, certain behaviours will

increase. Positive attitudes and communication between project stakeholders during the early

stages of a project can reinforce relationship building, trust, understanding, cooperation,

interaction and management capacity, facilitating a better project outcome (Brody, 2003).

Through this process, construction organizations and public sectors can highlight optimum

solutions to meet community requirements. This process also allows professional external

stakeholders, such as the architectural and engineering consultant or contractor, to suggest better

solutions for any technical issues that arise. By engaging external stakeholders, construction

organisation and public sectors can gain knowledge and insight about their surrounding

environment and related experiences, which can enhance the quality of planning and defining the

project scope elements.

The concept of risk is related to the activities that flow from decisions that are made during the

project scope definition. The outcomes of these activities may differ from stakeholders’

expectations (Loosemore 1999).

These differences occur when stakeholders are in disagreement; that is, when conflict arises.

Conflict has been defined by Conlin et al. (1996) as a serious difference between two or more

beliefs, ideas or interests. A higher level of procedural justice during the planning of a project is

associated with less conflict and greater harmony between stakeholders during the project’s

execution (Alexander and Ruderman 1987). To achieve conflict resolution during the project

scope definition process, collaboration between project stakeholders is required (Yu and Shen

2013).

20

Through case studies, Innes (1996) found that participation and collaboration not only help in

increasing trust, communication and the development of internal and external stakeholder

networks, but also result in stronger plans that meet a greater range of interests and are beneficial

to the quality of the project’s outcome. Another key benefit of involving external stakeholders in

the pre-project planning process is that it can prevent the project experiencing costly delays

during later stages (Irvin and Stansbury 2004), which is the case in most public projects in

developing countries such as Saudi Arabia (Assaf and Al-Hejji 2006). Thus, early participation

can increase the efficiency of feedback integration, helping construction organizations and public

sectors to be proactive in mitigating stakeholders’ dissatisfaction and resistance to the project’s

outcome.

2.2.8.2 Social Benefit

Participation in public projects is necessary to develop and maintain a sense of identity for the

participant, which comes from them experiencing power in decision-making. By allowing a

person to have an effect on his or her environment, participation contributes to the health of the

individual and the community. Participation also aids in the development of the self and builds

one’s sense of effectiveness within the community, which in turn supports the durability and

vitality of the community (Smith 1973). Smith (1973) emphasized that the domains of

community empowerment and capacity are intertwined. In the context of construction projects,

the community can be understood as the stakeholders. Smith (1973) noted that the capacity of

stakeholders can only be achieved when they have been empowered to achieve satisfactory

outcomes. One means of empowering stakeholders to define and plan project scope elements is

through participation. The participation of all stakeholders, especially internal ones, in the

planning and decision-making process improves individuals’ sense of ownership over the project

21

and ensures that all relevant interests and requirements are reflected in the final plan (Innes

1996). In a construction project, this plan is the package of the project scope definition elements.

A common motivator for external stakeholders to participate in defining and planning a project

scope is the belief in a self-directed destiny. In other words, stakeholders become more actively

involved in the defining and planning process when they believe they have a level of control over

their own futures that reflects their needs and requirements. Manzo and Weinstein (1987)

emphasis: ‘The belief that one has control over his or her own fate, as well as the feeling that one

has the ability to contribute ideas and formulate policy, seems to facilitate genuine participation’.

People’s satisfaction with outcomes is increased when they believe they have been part of doing

something beneficial. Novelli et al., (1993) found that participation effects are enhanced when

people feel their input is integral in shaping the outcomes of a problem. Even when their input

has little or no influence on the decision being made, people still value the opportunity to express

their views (Lind et al. 1990). Further, as participation satisfies basic desires, it leads to more

participation. People’s attitudes and values drive their intrinsic motivation to participate with a

group to make a decision.

The more motivated people are to participate, the more honestly they participate in groups for

their personal benefit, without concern of facing risk, and without the need for direct incentives

(Tyler, 2013).

2.3 THEORETICAL REVIEW

To inform later investigations, the following sections discuss a range of social psychology

theories and concepts, including participation theory, participatory planning, procedural justice

22

theory and the concept of outcome acceptance and how these benefit both the project and the

community.

2.3.1 Participation Theory

During the 1960s, the word participation became part of the popular political vocabulary.

Participatory theory’s central concern is that individuals have the opportunity, directly or by

choosing representatives, to participate in decision-making such that they can hope to have real

control over the course of their lives or the development of the environment in which they live

Dachler (1978). The concept of participative management is extracted from democratic,

socialistic and humanist theory, as well as from traditional management theories. Democratic

theories stress equal participation of all individuals in all aspects of social and organizational

decision making Dachler (1978). Dachler (1978) also added the philosophy of democratic

tradition; that is, self-government by representative of society’s population. Dachler (1978)

described the logic behind democratic theory as that humans, by nature, have the potential to

make wise and effective decisions when the knowledge of individuals is combined and used

collectively. Hence, participation is the core of democratic theory. Participation has come to be

seen as a right and the ignoring of participation in decision-making has been described as

breaking one of the pillars of the democratic tradition (Fagence 1977).

Van der Woerd (2009) stated that believing in a participatory approach involves the acceptance

of four principles: capacity building, power sharing, intrinsic valuation of stakeholders and

autonomy. Participation in practice is concerned with situating individuals in an environment of

mutual respect, freedom and responsibility for making decisions.

Participation is defined by the World Bank (1996) as ‘a process through which stakeholders

influence and share control over development initiatives, decisions, and resources that affect

23

them’. Participation can also be termed ‘engagement’, which refers to ‘involving individuals in

decisions that affect them by both asking for their input and allowing them to refute the merits of

one another’s ideas and assumptions (Chan Kim and Mauborgne 1998).

Chan Kim and Mauborgne (1988) stated that, in everyday terms, participation refers to ‘taking

part’; that is, contributing to something. Chan Kim and Mauborgne (cited in Barki and Hartwick

1994) differentiate the action of participation into a variety of forms: direct (through personal

action) or indirect (through representation); formal (using formal groups, teams, meetings or

mechanisms) or informal (through informal relationships, discussions and tasks); performed

alone (activities done by oneself) or shared (activities performed with others).

2.3.2 Participatory Planning And Management

The traditional planning process is not structured to obtain the benefit of citizen input (Smith

1973); rather, decisions are made by a relatively small number of top managers, including

owners. There needs to be a structural shift in the decision-making process from hierarchical to a

multilevel network planning decision structure to allow citizen input in the planning process.

True participation requires the involvement of all possible stakeholders in a decision, from the

planning phase to the end of the process.

When stakeholders’ input is collected without top management or decision-makers having the

intension to use the input, this constitutes false participation (Chan Kim and Mauborgne, 1998).

In the construction project management context, the term ‘citizen’ could be understood as the

external stakeholders of the project; they are not involved directly in the project planning

process; but they are affected by the outcome.

Participatory planning refers to the involvement and contribution of any individual, group or

community in a project (Smith 1973). A high level of external stakeholder participation, such as

24

by the public, consultants, contractors and end users, is often a central component of an effective

planning process. In her article, ‘A Ladder of Citizen Participation’, Arnstein (1969) states ‘the

idea of citizen participation is a little like eating spinach: no one is against it in principle because

it is good for you’.

Citizen participation in decision-making is a comparable concept to external stakeholders’

involvement and contribution to defining and planning a project scope in the construction

industry. One of the dilemmas of planning and defining a project scope, especially for

construction projects, is that just as this cannot be completed and succeed without stakeholder

participation, it also cannot be dominated by participatory processes (Beneviste 1989). While

there is general agreement on the need for greater stakeholder involvement in the decision-

making process, the appropriate approach to achieve this is mostly unspecified (Webler and

Tuler, 2001). Therefore, who is involved and to what degree will influence the outcome of the

planning process. In this sense, stakeholder participation should be characterized, quantified and

managed for the optimization of the participatory process

2.3.3 Procedural Justice Theory

Thibaut and Walker (1975) first proposed the procedural justice theory. This theory suggests that

people judge the decision-making process not only by the outcome of a situation or event, but

also by other criteria, such as the fairness of the process used to achieve the decision (Thibaut

and Walker 1975; Leventhal 1980). Thibaut and Walker’s procedural justice theory is concerned

with the impact of the fairness of decision making procedures on the attitudes and behaviours of

the people involved in and affected by those decisions (Sapienza et al., 1995). Recent researchers

have described procedural justice as the ability of social authorities to bridge differences in

interests and values and find resolutions that the parties to a dispute will accept (Tyler, 2013). In

25

the context of construction projects, project managers are seen as the authorities and the

stakeholders are the parties.

Thibaut and Walker (cited in Tyler and Blader 2000) noticed that the basic problem is:

that everyone cannot have everything they want at the same time. Similarly, everyone simply

cannot act as they please. In addition, people cannot live in a group, society or organisation that

always follows the policies they prefer.

Finally, people cannot necessarily have their preferred status or social position for themselves

and the group to which they belong Thibaut and Walker suggested that these problems be solved

via social cooperation, with the hope that people would be willing to accept outcomes that had

been fairly decided upon in view of the justice of the decision-making procedure; that is, the

procedural justice. Thibaut and Walker’s studies (cited in Tyler 2000) demonstrated that people’s

assessments of the fairness of third-party decision-making procedures shape their satisfaction

with outcomes. Later, Paese et al.’s (1988) experiments proved that the perception of procedural

justice practice positively enhances outcome satisfaction, even when individuals receive

unfavorable outcomes from decisions.

Tyler (2013) demonstrated that people experiencing procedural justice are more likely to accept

the decision that has been made and be satisfied with project outcomes. Satisfaction level is a

multidimensional measure; however, researchers have found that people care not only about the

outcome of the decision, but also about the procedures used to make that decision. Tyler (201)

defined four elements of procedures that people believe contribute to procedural fairness:

opportunities for participation (voice), the neutrality of the forum, the trustworthiness of

authorities and the degree to which people receive treatment with dignity and respect. It is

apparent from this that people’s main concern is with the fairness of the outcome that results

26

from fair procedures, rather than how favourable that outcome may be for individuals.

Procedural justice theory distinguishes between ‘control over a decision outcome and control

over the decision process and is particularly focused on the meaning of involvement in decision-

making’ (Thibaut and Walker, cited in Korsgaard et al. 1995,). Procedural justice is thus strongly

related to the attitudes, values and cooperative behaviour of participants (Tyler and Blader 2000).

Social psychologists have proposed two dominant explanations of procedural justice, as

summarized by Tyler and Blader’s (2000) work. The first perspective, developed by Thibaut and

Walker (1975), explains that people want to maximize their control over the decisions that

determine outcomes when they are interacting in a group in a manner they feel will result in a

fair outcome for them. However, people will not always have direct control over outcomes,

causing them to seek ways to maintain indirect control via procedures that provide them with

opportunities to express their opinions and present their evidence to decision-makers.

Giving construction project stakeholders the opportunity to provide their opinions and concerns

on decisions would increase their feeling of control over the process. This would be reflected in

their belief in the fairness of the decision-making procedure, increasing their satisfaction with the

outcomes.

The other perspective on the meaning of procedural justice comes from the group-value model,

which hypothesizes that people are concerned about three main aspects of procedures: the

neutrality of procedures, inference relating to the trustworthiness of the motives of authorities

and the degree to which people are treated with dignity and politeness during the procedure

(Tyler, 2013).

27

The group-value model perspective is concerned with the relations and cooperation within an

organization and how these affect the quality of interpersonal treatment, relationships and

communication within groups. Tyler (2013) found that:

People are more trusting of authorities who allow them to participate in deliberations, people feel

that part of respecting their rights and status as individuals is allowing them to participate, and

people are more likely to view procedures in which they participate as neutral.

For stakeholders to see decision-making procedures are fair, they need to participate in shaping

decisions. People feel more fairly treated when they are given the opportunity to participate in

making decisions relating to their problems and concerns by expressing their suggestions and

opinions about what should be done. Stakeholders’ participation in the pre-project planning stage

can reduce disputes and dissatisfaction during the execution of a project and increase acceptance

and satisfaction with the outcome.

2.4 EMPIRICAL REVIEW

2.4.1 Challenges With Stakeholder Management In Project Delivery

Management in all business and organizational activities is the act of getting people together to

accomplish desired goals and objectives using available resources efficiently and effectively.

Management comprises planning, organizing, staffing, leading or directing, and controlling an

organization (a group of one or more people or entities) or effort for the purpose of

accomplishing a goal. Resourcing encompasses the deployment and manipulation of human

resources, financial resources, technological resources, and natural resources (Tyler, 2013)

28

Whilst traditional Project managers focuses on tools and templates that allow us to complete the

creation of the products or services being delivered, the discipline of Stakeholder management

focus on human dynamics; managing relationships and communications (Richard et al., 2007).

Stakeholder Management is a process and control that must be planned and guided by

underlying Principles. Stakeholder Management, within business or projects, prepares a strategy

utilizing information (or intelligence) gathered during the following common processes:

Stakeholder Identification, Stakeholder Analysis, Stakeholder Engagement, Stakeholder Matrix,

and Stakeholder Communication. Project stakeholder management is a key stakeholder skill – as

your stakeholders can either make or break your project (Richard et al., 2007).

That notwithstanding, Society of Professionals in Dispute Resolution (SPIDR) Quintas et al.,

(1997) indicated that, the growing utilization of stakeholder processes has drawn a growing

number of individuals and firms into the field. While many of these newer entrants are well

qualified, a number possess neither sufficient knowledge of stakeholder process management nor

substantive understanding of the issues.

In addition, there is a growing need to ensure that activities labeled as stakeholder processes do,

in fact, live up to the expectations and standards of experienced practitioners in the field. Also,

stakeholder process managers are sometimes directed by their clients to engage in practices that

present ethical and practical problems.

2.5 THE CAUSES OF FAILURE/ABANDONMENT OF THE PROJECTS

The construction industry in Ghana has an important position in the country’s economy even

though it happens to contribute less than other services industries” (Enshassi et al., 2009). The

importance of this sector necessitates the industry’s improved efficiency by means of cost

29

effectiveness, schedules and cost savings for the country. However, the construction industry has

been facing criticism with the growing rate of failed or abandoned construction projects across

the country (Enshassi et al., 2009). Project failure can be considered as the inability to achieve

success in an endeavour (Zarewa et al., 2018). Most frequently projects are considered a failure

when they fail to deliver on schedule and work within the allocated budget and scope Zarewa et

al., 2018). There are many pitfalls that can make a project sink, such as failure to carry out

proper analysis before embarking on the project, lack of good project management, unclear

project objectives.

2.6 INVOLVEMENT OF THE VARIOUS STAKEHOLDERS IN THOSE PROJECTS

Projects are organizational strategic instrument that lead innovation and create value. However

their failures and challenges cost global businesses, governments and organizations fortune each

year. The recent studies conducted by the academia and industry including studies by McKinsey

in collaboration with the University of Oxford (Rajablu et al., 2015. The international

development projects are also subject of failures and great disappointments (Lavagnon Ika,

2013). Scholars have cited “the ignorance or poor stakeholder management” as one of the key

reasons responsible for project failure ((Fageha & Aibinu, 2013). Findings indicate that issues

within the stakeholder environment are mainly related to the stakeholder influential attributes

and behaviours and their understanding and management (Fageha & Aibinu, 2013), which

require exhaustive analysis, broader knowledge, and inclusive management methodology,

techniques and tools in order to effectively be assessed, utilized and managed to ensure projects

well-being and success.

30

2.7 THE EFFECTS OF THE STAKEHOLDERS’ INVOLVEMENT ON THE PROJECT SUCCESS.

Over the years, project management has been widely recognized in the construction industry

with its role being essential for successful project execution. The relevance of project

management continues to grow with increase in complex projects and clients demanding that the

triads (cost, time and quality) of project success be strictly achieved. Thus, there is need to

include specialist management skills in project teams (Alitheia, 2010). Despite this however,

developers in Nigeria appear to have little knowledge about the roles of project managers in the

construction industry, thus executing construction Projects without project managers and

increasing the tally of failed projects. In Nigeria today, any construction related professional

such as architect, builder, estate surveyor and valuer, quantity surveyor or engineer can be a

project manager provided there is knowledge, experience of the industry and ability to lead and

co-ordinate (Odusami, Omirin & Iyagba, 2003). Dosumu et al., (2005) associated poor project

management with ill-defined scope, poor project planning, breakdown in communication among

construction stakeholders, setting unrealistic scope, schedules and budgets, design changes at

various stages of work and lack of good project control. In a country like Nigeria where project

management is barely practiced, and it is informal when practiced, there is need to investigate

the awareness level of the so-called project managers and determine the roles that have the

capacity to result in abandonment of construction projects. Hence, for effective project

management, this study investigates the level of awareness of project managers about their roles

on construction projects. It also examines the project management roles that could lead to project

abandonment if they are not performed.

31

CHAPTER THREE

RESEARCH METHODOLOGY

4.1 INTRODUCTION

This chapter present processes used to collect the primary data for the study. It includes an

explanation of the study population, sample size, sampling technique, data collection and

analysis tools. Ethical considerations in the conduct of the study has also been highlighted in this

chapter.

4.2 RESEARCH DESIGN, APPROACH AND STRATEGY

The current study used a case study research design and qualitative research approach.

Qualitative descriptive studies are the least “theoretical” of all of the qualitative approaches to

research (Elliot et al., 1999). In addition, qualitative descriptive studies are the least encumbered

studies, compared to other qualitative approaches, by a pre-existing theoretical or philosophical

commitment. The use of the case study design was to help to get an in depth information about

the stakeholder management and how it can help in addressing the problem of abandoned

projects in Ghana (Elliot et al., 1999)

In summary, a qualitative descriptive approach needs to be the design of choice when a straight

forward description of a phenomenon is desired. It is an approach that is very useful when

researchers want to know, regarding events, who were involved, what was involved, and where

did things take place (Elliot et al., 1999)

32

4.3 POPULATION

The current study focused on selected abandoned projects which were being managed by District

Assemblies in the Ashanti region. The client, contractors and consultant who were involved in

the execution of those projects were selected for the study (ten in number).

4.3.1 Sample And Sampling Procedures

The sample size required for a study is influenced by several factors, including the purpose of the

study, the population size, the level of precision, the level of confident or risk and the degree of

variability in the attributes being measured (Isreal, 1992). According to (Isreal, 1992), sample

size for a study can be determine using (a) figures in Published tables (b) Sample size of similar

studies (c) A consensus for small populations and (d) Formulas.

In the current study, the 4 abandoned projects from in the Ashanti region were selected for the

study. A representative from the client, contractor and consultants were selected for the study.

These respondents were purposively selected.

4.3.2 Data Collection Techniques

4.3.2.1 Sources Of Data

The study collected both primary and secondary data. The secondary data was collected through

literature review from previous thesis, book, journal publications etc. The primary data on the

other hand was collected through interview

4.3.2.2 Data Collection Instrument (Primary Data)

The primary data for the study was collected using structured interview. The interview guide had

two sections. The first section drew information about the demographic characteristics of the

respondents where the other sections asked questions relating to the study objectives. The

33

questions were formulated in plain language which was easy to be understood. A copy of the

interview guide is attached at the appendix.

4.3.2.3 The Fieldwork

The data collection was conducted in the month of August, 2019. The questionnaire was done by

the researcher and 2 assistants. These assistants were first given training on how to conduct the

interviews. Each interview took between 10-15 minutes. For most of the respondents, the

interview was recorded while few ones did not allow for recording of their voice but rather ought

that they provide the answers in writing. In all, 30 people were successfully interview within a

period of 2 weeks by the 3 data collection team.

4.3.3 Data Analysis Techniques

Analysis of the data was done using content and thematic analysis. First the data was transcribed

and the various themes were captured. Data on the demographic of the respondents and the

abandoned projects were however analyzed using descriptive statics in the form of frequencies

and percentages.

4.4 ETHICAL CONSIDERATIONS

Prior consent/permission of the selected respondents was sought and the purpose of the study

explained to them. This enabled the respondents to feel free and answer the questionnaires with

all frankness without hiding any information. The privacy, anonymity and confidentiality of the

responses were highly treated. Effort was made to keep the questions in the questionnaire in

simple language, devoid of technical terms to minimize potential challenges. Any piece of

document used for the work was appropriately referenced to void plagiarism.

34

CHAPTER FOUR

RESULTS AND DISCUSSION

4.1 INTRODUCTION

This chapter presents the results of the study and discussion of the results in relation to literature.

The first section presents the background of the respondents while the other remaining section

look at the other objectives of the study.

4.2 BACKGROUND OF INTERVIEWEE

The first section of the interview sought to draw information about the background of the

respondents. As mentioned in the chapter three, three stakeholders were selected for the

interview: the client, contractor and the consultants for each project. For each project one

representative from the each of the three stakeholders were conveniently selected for the study.

Thus, the interviewees comprise Architects, Quantity surveyors, project managers, contractors

and representative from the client’s outfit.

Regarding their experience, it was found that 9 out of the 12 (i.e.75%) interviewee had over 10

years of working experience in their profession. This put them in a good position to provide

credible information for the study. This fact was also acknowledged by Fellow and Liu (2008)

who noted that the experience of respondents plays a key role in determining the reliability of a

research data.

35

Table 4. 1Years Of Working Experience Of Interviewees

Sn VariableInterviewees

P1 P2 P3 P4 P5 P6 P7 P8 P9 P10 P11 P12

1 Years of working experience (years)

7 6 12 17 14 24 31 20 18 4 27 19

Source: Field Survey, 2019

4.3 BACKGROUND OF THE ABANDONED PROJECTS

The study also collected information about the background of the selected projects as shown in

Table 4.2. From the data presented, 2 out of the 4 projects have been abandoned for more than 3

years while one is approaching 2 years. The last project (i.e. project C) has been abandoned for

11 months as at the time of the data collection (i.e. August, 2018). Majority of these projects

were abandoned at the substructure level as show in Plates 4.1 to 4.3. Moreover, the value of the

projects was at least Ghc250,000.00

The above statistics confirms the results of the survey conducted by the Auditor General in 2017

who found that project. From the survey it was found that abandoned or uncompleted project is a

common problem in the Ashanti region. In the Kumasi metropolis for instance it was found that

ten out of the 14 projects had been abandoned for periods ranging between four to ten years.

Moreover, these projects were between 20 – 50% level of completion. The findings from the

current study is worrying since a significant amount of money is being wasted through

abandoned projected. It is expected that effective stakeholder involvement will be a solution to

addressing these challenge

36

Table 4. 2 Background Of Abandoned Building Projects

Sn Variables PROJECT

A B C D

1 Year project commenced 2014 2016 2017 2012

2 Duration project has been abandoned*

3 years 4month

1 year 7 months

11 months 4 year, 2 months

3 Nature of project School building

Office complex

School building

Market

4 State project was abandoned

substructure Substructure Substructure Superstructure columns erected

5 Value of project (Ghc) 250,000.00 547,000.00 380,000.00 520,000.00Source: Field Survey, 2019

Figure 4. 1 Current Status Of Abandoned 6-Unit Classroom Block At Kumasi (Project A)

Source: Field Survey, 2019

37

Figure 4. 2 Abandoned Office Building At Substructure Level (Project B)

Source: Field Survey, 2019

38

Figure 4. 3 Abandoned Classroom Block (Project C)

Source: Field Survey, 2019

4.4 STAKEHOLDERS INVOLVED IN THE PLANNING AND EXECUTION OF THE ABANDONED BUILDING PROJECTS

The study sought to find out the stakeholders who were involved in the selected project as well

as the role they played in the execution of the projects. Per the nature of the projects selected it

was expected that at lead 10 people stakeholders be involved at one stage or the other in the

delivery of the projects. These external and internal stakeholders include the client, consultants,

contractor beneficiaries of the project, financiers, chief of the area, Assemblyman of the area,

Unit committee members of the area, Member of parliament of the area and Other opinion

leaders such as religious leaders in the community.

From the data collected most of the project were planned and executed without the involvement

of majority of the stakeholders. It was found that usually the client planned the project with the

39

consultant. The client hires the consultant to design the building after which a contractor is

appointed to see to the contraction of the project. In most of the cases the work of the consultants

ends with the design of the building. Beneficiaries of the project among other stakeholder were

found not to be involved in the project delivery. The lack of involvement of these stakeholder

sometimes create problems that leads to failure of the projects. The above findings agree with

that of Walker (2000) who noted that the degree of stakeholder involvement affects the ability to

reduce uncertainty in the interests of achieving clarity in defining and controlling the project.

Atkinson et al. (2006) also added that failure to consider and clarify stakeholders’ expectations

and concerns at an early stage in the project can result in extraordinary risks being ignored and

lead to difficulties in running the project, poor performance, failure or even disaster. The same

finding was also noted by Bryson (2004).

Table 4. 3 Stakeholders Involved In The Project Delivery

Sn Stakeholders involved

in the project delivery

Stage of involvement of stakeholders

A B C D

Pl.* Ex.* Pl.* Ex.* Pl.* Ex.* Pl.* Ex.*

1 Client √√ √ √ √ √ √ √

2 Consultants √ √ x x √ √ x √

3 Contractor X √ x √ x √ x √

40

4 Beneficiaries of the project x x x x x x x X

5 Financiers√ √ √ √ √ √ √ √

6 Chief of the area x x x x x x x X

7 Assemblyman of the Area √ √

8 Unit committee members of the area

X x x x x x x X

9 Member of parliament of the area

X x x x x x √ X

10 Other opinion leaders such as religious leaders in the community

X x x x x x x X

Note: Pl.* - Planning stage Ex.* - Execution stage

Source: Field Survey, 2019

4.4 FACTORS CONTRIBUTING TO THE ABANDONEMENT OF THE PROJECT

One of the objectives of the current study was to explore the causes failure of the projects. The

responses from the various interviewees are summarized in Table 4.3.

41

4.4.1 Political Interference

Interference of politicians in the award of contracts and the subsequent execution of construction

projects in Ghana is well documented (Asante, 2014). In the current study, this issue was one of

the major causes of failure of the projects. Quoting one of the respondents on the above issues:

“very often the politicians award the contract to their people. When such things occur the

contractor do not pay much regards to the other people on the project. In other words, the

capacity of the other project parties to control the contractor is limited”

The findings from the current study there confirms the earlier report by Asante (2014).

4.4.2 Poor Stakeholder Management

The lack of stakeholder involvement in decision making was also echoed by 10 out of the 12

interviewees as the major cause of failure of the abandoned projects. Most of them explained that

most of the contracts were awarded by the client without consultation with the client. Concerning

Project C, one of the interviewee explained as follows: “the classroom block contract was

awarded by the government without the involvement of the consultants or the other stakeholders.

As a results, during the project execution there was poor supervision of the work by the

consultants. Other stakeholders such as the headmaster of the school, the Assemblyman of the

Area as well as the Municipal Assembly was hardly seen on the project site. As a results the

contractor did “shoddy” work which was latter noticed by the consultants. The contractor was

asked to demolish the structure and redo the work which he failed to do. The contractor

demanded that the client pays him for some of the works done so that he can finance the

continuation of the work which the client refused. This lead to the abandonment of the project”.

Thus the above problem would have been averted if the various stakeholders were consulted.

42

4.4.3 Insufficient Funds For Project Delivery

It was also reported by the study respondents that insufficient funds was a major factor that

contributed to the abandonment of some of the projects. It was revealed that most of the projects

were started by the government without adequate financial preparation. In most of the cases the

contractor was made to pre-finance the project after which payments were promised to be made

by the client when certificates are raised. This promised was not fulfilled by the client which lead

to the abandonment of the project by the contractor pending payment for works done.

This results agrees with Auditor General’s Report, (2017) which found that most projects were

abandoned as a results of failure by the client to pay the contractor. This problem also resulted in

delay in project execution.

Besides the above, other factor such as poor planning, pack of coordination among project

parties poor communication and corruption were reported as being major causes of failure of

those projects.

Table 4. 4 Factors Contributing To The Failure Of The Projects

Sn Factors Interviewees

P1 P2 P3 P4 P5 P6 P7 P8 P9 P10 P11 P12

1 Political interference * * * * * * * * * *

2 Lack of involvement of external stakeholders in decision making

* * * * * * * * * *

3 Insufficient funds for project delivery

* * * * * * * * * * *

43

4 Poor planning * * * * * * * * * * *

5 Lack of coordination among project parties

* * * * * * *

6 Poor communication * * * * * * *

7 Corruption * * * * * * * * *

Source: Field Survey, 2019

4.5 EFFECTS OF THE STAKEHOLDERS’ INVOLVEMENT ON THE PROJECT SUCCESS.

The study also sought to identity the effects of the involvement of the stakeholders on the

delivery of the projects. From the earlier results presented, it was revealed that stakeholder

involvement in the planning and execution of the projects was very poor. This led to negative

effects on the project delivery. Some of the effects suggested by the interviewees are presented in

Table 4.4.

From the results on the table, the effects in setting of unrealistic project targets. With respect to

the above, the study participants explained that since very few people were involved in the

planning of the projects a some of the project target (e.g. cost of the project) were unrealistic. For

instance, it was noted that most of the projects significantly exceeded the budget during the

actual construction. This lead to the abandonment of the projects. These results are not different

from what was reported by Lam et al. (2007).

44

In addition to the above, there was another effects in terms of poor quality work. With regard to

the above, it was noted that in most cases the contractor has to pay bribe before he is given the

contract. When such this occur it affects the profitability of the contractor who then starts to use

substandard materials in other to cut down cost. Fewings (2005) and the Auditor General’s

Report (2017) echoed the same finding.

Beside the above, poor supervision, inflation of project cost to the benefit of one party and poor

planning were some of the effects. The above results and not deferent from that of Gerskup

(2010) and Kedikilwe (2009)

Table 4. 5 Effects Of Poor Stakeholder Involvement On The Project Delivery

Sn EffectsInterviewees

P1 P2 P3 P4 P5 P6 P7 P8 P9 P10 P11 P12

1 Setting of unrealistic project targets

* * * * * * * * *

2 Frequent variations leading to cost overruns

* * * * *

3 Inflation of project cost * * * * * *

3 Poor planning * * * * * *

4 Poor supervisor * * * * * *

5 Poor quality work * * * * * * * *

Source: Field Survey, 2019

45

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATION

5.1 INTRODUCTION

This last chapter of the study summarizes the key research findings and draw conclusions from

the study. Recommendations are also made in the light of the above findings.

5.2 SUMMARY OF FINDINGS

The current study sought to assess stakeholder’s involvement in building construction projects as

a solution to project failures in Ghana using a case study of abandoned projects. Based on the

interview, the following are the key findings:

Objective 1: To identify the stakeholders involved in the planning and execution of the

abandoned building projects

It was found that based on the nature of the project there were a number of stakeholders (both

external and internal) who were supposed to be involved in the execution of the projects.

However, in most cases, the project were planned and executed by the contractor, the district

Assembly within which the project was located, the client and consultants. In was found that in

most of the cases, the selection of the contractor and consultants were done by the clients without

any consultation with the other stakeholders.

46

Objective 2: To critically assess the causes of failure/abandonment of the projects.

It was found that the causes of the project failure included the following:

Lack of involvement of some of the major stakeholders in decision making.

Political Interference

Poor communication among the project parties

Unrealistic project appraisal (cost and time)

Inadequate funds to complete the project

Objective 3: To investigate into the extent of involvement of the various stakeholders in

those projects

It was found from the results of the study that most of the stakeholders were not involved in

decision making at the planning and execution stage. The contractor selection was done by the

client. Moreover, political interference played a major role in the selection of the contractor.

Objective 4: To examine the effects of the stakeholders’ involvement on the project success

As a results of the lack of involvement of majority of the stakeholders in the project delivery, the

following were some of the resulting effects or consequences.

Setting of unrealistic project targets

Delays in project execution

Frequent variations leading to cost overrun

Inflation of project cost

Poor planning

Poor supervision

47

5.3 CONCLUSION

From the findings of the study it was evident that lack of involvement of stakeholders played a

major role in the failure of the selected projects. Through political interference, contractors are

selected without any consultation with the prospective and other stakeholders such as the

consultants. Some projects are awarded without doing feasibility study on the suitability of the

location of the projects. Thus, poor planning and communication results from such issues. The

projects are consequently abandoned when the funds allocated for the projects are mismanaged.

5.4 RECOMMENDATIONS

Based on the findings of the study the following recommendations are made:

Stakeholder involvement-The involvement of all stakeholders from the onset to

completion of a project is recommended. It was evident from the current study that since

majority of decisions were taken by one or two people without consultation with the

prospective stakeholders certain problems were not identified. Those problems

consequently led to the failure of the projects. For instance, it was found that some of the

contractors did not have the financial capability to execute the works yet they were

awarded the contract. This problem would have been averted if the consultants were

involved in the contractor selection.

Lack of political interference- Influence of politicians in the award of contract is a

major problem facing the country. This scenario creates a huge problem where

incompetent contractors are selected for a job they cannot execute.

48

There are cases that non-contractors pose as contractors under political cover for contract

awards and transfer the contract to an incompetent second party contractor. It is

therefore recommended that such issues should be stopped using legal instrument.

Proper Planning- There should also be proper planning and adequate feasibility study

before a project commences. This include ensuring that there is a realist budget and

funds prior to the commencement of a project.

5.5 FUTURE RESEARCH DIRECTIONS

It is recommended that future research should look at the extent of the scope of the study and

look at other abandoned projects in Ghana.

49

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APPENDIX A- INTERVIEW GUIDEKwame Nkrumah University of Science and Technology (KNUST)

Department of Construction Technology and Management

“Stakeholder Involvement in Construction in Building Projects as A Solution o Project Failure. A Case study of Abandoned Building Projects”

Instructions to Interviewees

This is a qualitative study. Your knowledge of the subject-matter of the research, views,

experiences and opinions are central to the study. Therefore, kindly answer the main and follow-

up questions as exhaustively as you can so that your rich experiences can be captured in this

study. Anonymity and confidentiality of all responses is assured/guaranteed.

SECTION A: BACKGROUND OF INTERVIEWEE

1. Position

2. No. of years of working experiences

SECTION B: ISSUES PARTING TO THE STAKEHOLDERS’ INVOLVEMENT IN THE DELIVERY OF THE PROJECT

3. Name of abandoned project…………………….

4. What role did you play in the construction of the project?

5. At what stage was the project abandoned?

6. Who were the stakeholders involved in the execution of the project?

7. What were the roles of the various stakeholders in those projects?

8. What was the level of involvement of the stakeholders in those projects?

9. What were the challenges with stakeholder’s involvement?

10. What are some of the effects of the effects of the stakeholders’ involvement in the

success of the project?

59