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Roles of Stakeholders During Construction Projects

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The construction industry impacts all towns, cities, provinces and states. Although issues may vary from jurisdiction to jurisdiction, similar stakeholders are involved throughout the construction process in varying places. Stakeholder relationship management in the construction industry involves understanding the role of each stakeholder and how different entities can work together on behalf of industry and their clients.

Contractors

The contractors are essentially project managers. They direct the building process from initial planning to final approval. A contractor may have its own staff, consisting of skilled tradespeople, or it may hire sub-contractors. Contractors supervise the project timeline, manage the budget and work with other stakeholders, such as regulatory bodies, to ensure the completed building meets all code requirements.

Clients

Clients are the eventual owners of the building and typical funding agent of the project. However, some real estate developers fund the development of buildings and then sell them; they may only hold the title of owner while the project is under development. The client in a real estate project ranges from a young family building its first home to major real estate and commercial builders developing malls, office towers and condos. Clients direct the style, content and overall look and feel of the building in conjunction with the budget, timeline and available resources.

Government

Government and industry are other stakeholders. Varying levels of government are stakeholders in construction. Local government approves permits and gives the okay for new developments. State and federal government bodies set standards for fire, safety and other residential and commercial building codes.

Unions

Unionized labor may also play a role in construction projects. Some skilled trades' contractors and sub-contracted employees may be unionized workers; the contractor will work in consultation with the union and ensure project human resources are managed in accordance with the policies and processes of the union.

References

  • "Advancing the Competitiveness and Efficiency of the U.S. Construction Industry"; National Academies Press; 2009
  • "People and Culture in Construction: A Reader"; 2007; Andrew Dainty, Stuart Green, Barbara Bagilhole

About the Author

Karenna Cochrane has been writing professionally since 2005, specializing in home-and-garden topics such as interior design and home improvement. She has published work online and in print for national organizations.