Project Management - Impact of Stakeholders on Project Delays and Increased Costs - Research Proposal Example

? ……………………………………………………………………………XXXX ………………………………………………………………………XXXX …………………………………………………………………………….XXXX …………………………………………………………………………..XXXX Date………………………………………………………………………………..XXXX Proposal The construction of infrastructure projects attracts numerous stakeholders who play different roles to ensure that these projects are carried out to completion. These stakeholders include suppliers, consumers, contractors, government, sponsors, employees, the community, managers and the concerned organizations. Infrastructure construction projects are very important to a country’s economic development. A good transport network ensures and promotes the movement of goods and services from one place to another easily. However, the constructions of infrastructure projects are always encroached with project delays and increased costs. These projects rarely go to completion as a result of these project delays and increased costs. Infrastructure construction projects worldwide have been reported to encounter delays and increased costs. Stakeholders normally have an input into these delays and increased costs. The most common reason for project delays and cost overrun is design errors (Ambituuni, 2011). Project designs play an important role as it serves to achieve good technical input to aid in execution of the project. Errors in project design caused by the project owners and contractors means that there will be wrong or insufficient application of techniques thus achieving no results. Suppliers of materials also cause project delay and increased costs through late delivery of construction materials to the construction site. Late delivery can be attributed to shortage or unavailability of these materials in the market. Employees that work in the construction projects do not have the necessary skills that are suitable for the job. Shortage of skilled labour leads to substandard work which in turn contributes to project delays and increased costs (Kikwasi, 2012). Government actions or legislations sometimes cause delays in obtaining permit from the relevant authorities; discrepancies between design specification and building code contribute to project delays and increased costs (Fugar & Agyakwah- Baah, 2010). Infrastructure construction projects in the Transport for London is important in promoting national economic growth and competitiveness. In my opinion, effective transport system enables people to access essential services such as healthcare, education, travelling to employment places and the transportation and selling of goods. A country’s effective transport system ultimately leads to improved social development and economic growth. The construction sector plays an important role in the London economy as it generates a good percentage of the Gross Domestic Product and also in job creation. The construction sector is a major consumer of intermediate products such as raw materials, chemicals, electrical and electronic equipment among other related services. Transport for London construction sector could contribute to the creation of employment opportunities through extension of activities in areas such as renovation of buildings while also playing an important role in the delivery of Europe 2020 strategy on smart, sustainable and inclusive growth. The construction industry provides job seekers with extensive career opportunities with growth being projected from laborers to construction managers. The construction industry has also demonstrated a strong commitment to workforce development in that the key stakeholders including employers, trade associations and labor-management organizations are heavily involved in the apprenticeship programs. These programs ensure that employees have the necessary skills that employers demand and also help them to progress in the labor market. Project delays have devastating effects on various stakeholders involved in the construction industry. The managing contractor faces challenges that come as a result of project delays as sometimes the owners of the project may opt to seek justice in the law courts. Litigation is one of the challenges that face contractors when project delays and increased costs occur. Since project delays results to cost overrun, project owner resolve to use the court process in order to have contractor cater for the damages and increased cost resulting from the delays (Hussin & Omran, 2011). Arbitration is also another challenge that faces contractors as a result of project delays and increased costs in the transport sector. Arbitration seeks to find a solution to the disputes emanating from project delays between the contractor and the project owner. Contractors are adversely affected as the project has to be abandoned to pave way for the arbitration process. This also leads to total abandonment of the project. Financiers also lose their trust on contractors and the owners of the project as they take embezzlement of funds as the reason behind the project delays and increased costs(Hussin & Omran, 2011). This means that the financiers will either cut their financial aid or impose strict guidelines to ensure proper expenditure to avoid delays. The financiers might also decide to pull out of the project thus leading to total collapse especially if the project is financed by the private sector. This will affect the cash-flow as contractors will have no money at their disposal to cater for the expenses of carrying out the project to completion. Research Questions The research questions are; Who are the various stakeholders involved in the Transport for London infrastructure construction study? How do stakeholders contribute to project delays and increased costs in the transport construction industry? What is the best practice in stakeholders’ management, particularly with respect to the construction industry? What are the issues that attribute stakeholders to project delays and increased costs in the Transport for London projects? What is the impact of government legislation on project delays and increased costs? How do project delays and increased project costs affect the management and success of the construction project? What recommendations for the stakeholder’s management should alleviate stakeholders causing project delays and increased costs? Aims and Objectives Aims The aim of the study is to find out the impact of stakeholders on project delays and increased costs. Objectives To classify the people to determine the stakeholders to the project and find out their roles To analyze the impact of project delays and increased costs on the Transport for London project Methodology The methodology to be used in the study is the primary source of data. According to Bryman and Bell (2003), a research method is simply a technique for collecting data. This will involve qualitative methods as the research questions emphasize words rather than quantification in the collection and analysis of data (Bryman & Bell, 2003). The study will involve development of appropriate questionnaires that will be distributed to project managers at different sections and levels. Before distributing the questionnaires to the managers, a pilot study will be conducted to ensure validity of the study. Secondary source of data will also be used in case studies analysis to identify the sources of project delays and increased costs in Transport for London projects. The study will commence with Literature review as critical literature review forms the basis on which the research is developed (Saunder, Lewis & Thornhill, 2009). Project plan, Budget and Timeline The study plan can be seen in the figure below identifying the activities requested to complete the dissertation. The project‘s budget is 200 Euros which will cover miscellaneous such as printing and transportation. The greatest riskthat can be associated with the study is that it will not be staring on time. The limitation of the study is that not every infrastructure project will be worth the investment. Investing wisely in infrastructure project is therefore critically important. To increase reliability of the study, self-review of the study will be carried out after every two weeks. Dissertation outcomes The study is fully developed in an attempt to understand the impact of stakeholders in project delays and increased costs in the transport sector. The study will play an important role in understanding the input of stakeholders that contribute to project delays and increased costs. The study will compare the stakeholders and the organizational theories in understanding the current best practice in stakeholder’s management in the Transport for London construction project. The study will also create insight in on the necessary measures to be put in place in order to ameliorate project delays and increased costs. References Fugar F.D. and Agyakwah-Baah, 2010. Delays in Building Construction Projects in Ghana, Australasian Journal of Construction Economics and Building, 10 (1/2) 103-116 Saunders M, Lewis P and Thornhill A. 2009. Research Methods for Business Students, Financial Times/Prentice Hall, 2009 Bryman A and Bell E. 2007. Business Research Methods, Oxford University Press Ambituuni A, 2011. Causes of project Delays and Cost Overruns Hussin A and Omran A, 2011. Implications of Non-Completion Projects in Malaysia Kikwasi, G.J, 2012. Causes and Effects of Delays and Disruptions in Construction Projects in Tanzania Read More