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RICS COBRA 201823 – 24 April 2018RICS HQ, London, UK

In association with

RICS COBRA 2018The Construction, Building and Real Estate Research Conference of the Royal Institution of Chartered Surveyors

Held in London, UK in association with University College London

23 – 24 April 2018RICS HQ, London, UK

© RICS, 2018ISBN: 978-1-78321-272-9ISSN: 2398-8614

Royal Institution of Chartered Surveyors Parliament SquareLondonSW1P 3ADUnited Kingdom


The papers in this proceeding are intended for knowledge sharing, stimulate debate, and research findings only. This publication does not necessarily represent the views of RICS or University College London.

124 Urban construction project management: strategies in the coordination and management of external stakeholders


COBRA 2018

URBAN CONSTRUCTION PROJECT MANAGEMENT: STRATEGIES IN THE COORDINATION AND MANAGEMENT OF EXTERNAL STAKEHOLDERS

Michael Curran1, John Spillane2 and Daniel Clarke-Hagan3 1,3School of Natural and Built Environment, David Keir Building, Queen's University Belfast,

Stranmillis Road, Belfast, BT9 5AG 2School of Engineering, Schrodinger Building, University of Limerick, Limerick, Ireland, V94 T9PX

ABSTRACT

Construction projects are renowned for their complex and fragmented nature, making their environments hazardous and risky. The risk aspect increases in an urban area, which can adversely affect the external stakeholders affiliated with the project. Therefore, this paper aims to identify and document various response strategies used to counteract the issues identified from external stakeholders on urban construction projects. This research is a continuation of a previous COBRA paper, where various issues considering external stakeholders were identified. The core objective is to identify response strategies relevant to the issues, and in the management of the stakeholders in these intrinsically risky environments. The methodology undertaken is qualitatively based, encompassing a descriptive literature review and five case studies. The data accumulated is examined using mind mapping software, and cognitively summarised. Fifteen core strategies are distinguished from over eighty wide-ranging strategies, and collectively four main themes occur; general, environmental and safety, sustainable and communication strategies. Numerous strategies can be implemented depending on the nature of each project, but this research demonstrates and strengthens that early establishment of issues, coupled with effective response strategies and clear communication methods, can be used to eradicate the occurrence of issues considering external stakeholders on urban construction projects.

Keywords: community engagement, confined site construction, external stakeholders, stakeholder management, urban development.

INTRODUCTION According to the World Bank (2016), approximately 54% of the global population live in urban areas, and the RICS (2015) predict this to reach 66% by 2050 (Wilkinson 2016). Due to the continuous development of our urban centres, Isaacs, et al. (2010) argue that the need for stakeholder involvement in the decisions being made during the construction of these centres is necessary. As the population of urban centres increase, Jones and Evans (2008) theorise that there is a need to redevelop and modernise these often neglected areas. It is paramount that the coordination and management of the

1 [email protected] 2 [email protected] 3 [email protected]


various social, economic and environmental factors are accommodated in the evolution of urban centres, as Suresh and Egbu (2004) assert that urban development must consolidate these three elements to ensure sustainability. Major urban development projects involve large numbers of stakeholders (Gilmour, et al. 2010), and the management of the various external stakeholders involved in these projects must be given particular attention, as Boholm, et al. (1998) believe there is a growing tendency for external stakeholders to influence the implementation of development projects (Olander and Landin 2008). However, Aaltonen (2010) acknowledges that research on external project stakeholders and their management has received only scant attention, with academics failing to investigate the topic in detail (Gilchrist, et al. 2002; Spillane, et al. 2013). To address this issue and also to fulfil a succinct but prevalent gap in the research area, it is imperative to provide results based on the actuality of events which emerge throughout the construction of these environments. This study is a continuation of a previous COBRA paper, where issues considering external stakeholders on urban construction projects were identified and documented (Curran and Spillane 2016). Therefore, the aim of this particular study is to identify and document, within an urban context, the various strategies that can be adopted by on-site project managers to counteract the issues encountered previously. This is achieved by undertaking a sequential mixed method approach, incorporating a combination of qualitative techniques for analysis including a literature review and unstructured interviews, and using mind mapping software which is cognitively summarised. The core objective of this research is to identify what strategies are involved in the management of the external stakeholders in urban project environments. It is hoped that in challenging this aim, the study will assist and aid project managers in identifying, documenting and adopting strategies considering external stakeholders, particularly on urban construction projects.

URBAN CONSTRUCTION AND EXTERNAL STAKEHOLDER MANAGEMENT Construction projects by nature are considered to be complex and uncertain (Cicmil and Marshall 2005), and Chan and Tse (2003) strengthen that the construction industry as a whole is complex and multidimensional. The construction industry possesses an abundance of risk (Cunningham and Odeyinka 2016), considering various materials, products and stakeholders relevant to the design, build and operation of projects. Tah and Carr (2001) affirm that the construction industry is immersed in risk, and due to the increased complexity and dynamic of many projects, Maytorena, et al. (2007) observe that the ability to manage risk throughout the construction phase is central in preventing unwanted consequences. Lingard and Rowlinson (2005) further compound that the construction industry must acknowledge and counteract the inherent risks associated with working in environments where spatial restrictions are evident, as Roberts and Sykes (2000) argue that urban areas are also complex and dynamic systems. If a construction site within an urban area is not managed effectively, it can cause major disruption to the surrounding community. Yang and Shen (2015) note that a construction project comprises a series of complex activities and can attract a lot of attention from various parties, who are known as


stakeholders. Yang (2010) defines stakeholders as individuals or groups who can affect or be affected by a construction project. Stakeholder management within the construction industry has been discussed in a number of recent studies (Mohan and Paila 2013), and it is an essential part of the project management process (Olander 2006). However, it has a poor record due to the complexity and uncertainty of projects (Loosemore 2006). This issue has been highlighted in two major reports within the UK construction industry (Latham 1994; Egan 1998), where the authors are critical of the inadequate attention paid to stakeholder requirements. Aaltonen, et al. (2008) suggest that a project manager must consider stakeholders needs and requirements to ensure project success. Stakeholders can be classified as either internal or external (Atkin and Skitmore 2008); internal are those who are formally members of the project bloc and therefore usually approve the project, and external stakeholders are those who are not formally members but can affect or be affected by the project in a significant way.

METHODOLOGY This study is a continuation of an initial investigation which aims to contribute to both academia and industry. The subject currently being investigated is at the development stages of a broader research topic, and it is forecast that the initial findings of this paper will be used to further strengthen the results at the completion of the whole study. Similarly to the previous paper (Curran and Spillane 2016) and taking into account the theoretical position this paper and subsequent research is founded upon, a critical realism approach is considered and adopted. A subjectivist approach is applied to the ontology as the nature of this research primarily concerns opinions of human participants, which provides support for the case study methodology. The methodology encompasses qualitative analysis including a descriptive literature review, followed by five case study interviews with professionals in the construction industry. The subject of theory in the context of the interactions between construction projects and their physical and social environments is also worthy for consideration; however, this is beyond the scope of this paper due to the preliminary nature of the study in question.

LITERATURE REVIEW

An exhaustive literature review is undertaken, with literature examined from various sources including conference proceedings, published journals and academic textbooks. The literature is assessed and the necessary points are taken note of, as they will provide a basis and source of topic for discussion during the interview process. This establishes a thorough insight into the research topic, providing strong support of the research in focus, whilst aiding the information acquired from the case studies.

CASE STUDY INTERVIEWS

Case study interviews incorporating individual data collection is applied qualitatively. The case study approach is beneficial because it facilitates the investigation of a phenomenon in its real life context (Rowley 2004). Selective and convenience sampling is used in the identification of case studies for inclusion in this paper, in


order to ensure that the interviewees have the necessary knowledge to discuss the research topic in question. However, further study will use different selection techniques such as quota and random sampling, incorporating a sequential selection strategy. It is also envisaged that a much wider audience will be met during further study, until saturation of the data instrument has been achieved. Five exploratory case study interviews are undertaken to complement the literature review, and also to verify the factors identified. The format of the interviews will be open ended and unstructured, which enables questions to lead from one to another quite easily, and allowing the interviewees to talk openly. The case studies are identified and interviewees selected with respect to their own experiences of urban construction site environments. Participants interviewed are two project managers, two site managers and one site / civil engineer. Considering ethical issues, each interviewee has been carefully selected and informed of the nature of the research, its purpose and what will happen to the resultant data. The identities of the interviewees will remain anonymous and confidential information (such as names, client contact details etc.) is not disclosed. The case studies participating in the research include a road realignment project outside an urban town; a bridge construction over a river in a major city centre; construction of a new science building at a renowned university in a built up area; an expansion of a major technology and software suite at a busy industrial park on the outskirts of a major city; and construction of a biomass plant at a dairy factory on the outskirts of a large town. All five case studies are located throughout various parts of Ireland.

QUALITATIVE ANALYSIS Using mind mapping software, the data gathered from the case studies is qualitatively assessed and cognitively summarised. A mind mapping software application called Banxia Decision Explorer® is used for this research, which builds a visual representation of ideas and can provide a focus for debate, reflection and progression. Brightman (2002) postulates that it clarifies thinking and can be used to map thoughts and ideas gathered from interviews, acting as an effective stimulus to focus on paramount issues. Decision Explorer® can undertake three forms of analysis; Central, Domain and Cluster. They logically express how each factor or 'concept' is linked and interpreted, and each concept was discussed in some form by each of the interviewees. Central Analysis calculates a score to determine how central a concept is in the model, Domain Analysis expresses concepts which have numerous links, and Cluster Analysis finds groups of closely related concepts and the results are then placed into sets. Combining the data from the five interviews, a total of twenty-six issues are identified which can have an impact on the stakeholders involved, and how they affect proceedings on urban construction sites (Curran and Spillane 2016). Subsequently, this part of the study identifies over eighty different strategies which are broad and case study specific, with varying themes. Due to space limitations, the strategies have been generically summarised into four key themes and the concept analysis results have been omitted, with a total of fifteen core strategies illustrated in Table 1.


DISCUSSION - EXTERNAL STAKEHOLDER MANAGEMENT STRATEGIES

General Strategies Composing Tight and Timely Schedules and providing Incentives for Stakeholders are the main strategies to fall into the generalised category. Toor and Ogunlana (2010) assert that a project is successful when specific objectives are achieved, definite start and end dates have been established and the project is completed within a specific time period. Nguyen, et al. (2004) further indicate that a construction project is successful when it is completed on time and to stakeholder’s satisfaction. Regarding Incentives, Tang, et al. (2008) point out that cooperative strategies are necessary to improve performance by reducing confrontation in the construction industry. The use of financial incentives in construction projects is also seen as a key means of improving built environment outcomes (Rose and Manley 2011). In the road alignment case study, there was an incentive between the contractor and landowner to use unwanted excavation material and top soil on their land, which resulted in raised fields and a high quality top surface of grass, suitable for grazing and pasturage. Table 1: Management Strategies for External Stakeholders on Urban Construction Sites Case 1 Case 2 Case 3 Case 4 Case 5

Letters / Newsletters Sent Out x x

Traffic Management Systems Set Up x x x x

Consensus Building for Mutual Agreement x x

Public Notices to Inform Stakeholders x x x

Community Groups Set Up x x

Consult and Liaise with Stakeholders x x x x x

Information Evenings for Stakeholders x x x

Effective Communication with Stakeholders x x x

Educate and Liaise with Stakeholders x x

Inform Stakeholders Early x x x x x

Compose Tight and Timely Schedules x x x

Regular Meetings and Consultations x x x x x

Noise Monitoring Reports x x x

Incentives for Stakeholders x x

Sustainable Construction Methods x x x

Environmental and Safety Strategies Environmental strategies include Noise Monitoring Reports and Traffic Management Systems Set Up. Claudia, et al. (2006) concur that evaluation and monitoring of noise levels in the construction industry is needed in order to achieve effective solutions for controlling noise. Hessler and Hessler (2010) further acknowledge that Environmental Impact Assessment (EIA) laws are properly formulated and enforced to guide against the negative effects of noise pollution. The use of Traffic Management Systems were a necessary feature in four of the case studies, and they are an obvious and compulsory safety feature on many construction projects. Gambatese (2003) believes that many


safety hazards are designed into projects by construction safety professionals, and the safety of any operation is determined long before work starts on site (Behm 2005).

Sustainable Strategies Sustainable Construction Methods was another important strategy discussed by the interviewees, and this included carrying out earthworks and drainage using silt traps to prevent pollution (road alignment project), and the disposal of willow and disused forestry to use as fuel (biomass plant). Also, ash from the burning of the fuel can be mixed and used as fertilizer for land spread. The site manager at the biomass plant stressed that best practices should be implemented where possible in order to achieve efficiency and sustainability. Gilmour, et al. (2010) corroborate that sustainable urban development requires the engagement of wider stakeholders at all stages of decision making to ensure acceptable developments, and Walton, et al. (2005) note there is a wide awareness of sustainable development in the built environment.

Communication Strategies The remaining ten strategies identified are a combination of communication strategies such as Consensus Building for Mutual Agreement, Educate and Liaise with Stakeholders, Inform Stakeholders Early, Regular Meetings and Consultations and Effective Communication with Stakeholders. These findings reiterate the work of Jackson (2002) who identified five strategies for managing external stakeholders including informing, educating and seeking consensus. Olander (2003) affirms that consensus building can be achieved if all the relevant stakeholders can meet their own goals along with those of their opponents, and Chinyio and Akintoye (2008) emphasise the importance of workshops and meetings to communicate with stakeholders. Effective Communication with Stakeholders was stressed regularly by the interviewees, and it is an important practice for project managers to consider. Bourne (2006) ratifies that communication is essential for maintaining the support and commitment of all stakeholders, and the key to good stakeholder management is effective communication (Yang 2010).

CONCLUSION In essence, the focus of this study considers urban construction sites, and the strategies used to manage external stakeholders. Urban areas are known to be complex and dynamic systems making them difficult to operate in, and the element of risk is enlarged with the inclusion of a construction site. As a result, a project manager in this environment is tasked with ensuring that all relevant procedures are carried out in order to combat any issues which may occur on site, and employ effective stakeholder management by implementing efficient response strategies, to counteract the issues identified. Considering the results captured from the literature review, case studies and cluster analysis, over eighty broad strategies are identified which can be used to counteract the issues identified by Curran and Spillane (2016), that have an impact on the external stakeholders involved on urban construction projects. These were summarised to fifteen core strategies, and collectively four main themes occur; General, Environmental and Safety, Sustainable and Communication Strategies, ranging from Traffic Management Systems Set Up to Effective Communication with Stakeholders.


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