Identifying Stakeholders of Bechtel Corporation Essay

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Introduction

Bechtel Corporation is a construction giant. As such, it affects many towns and cities where it operates. Depending on the location, various stakeholders and interested parties may be or affected by the process. Identification and analysis of stakeholder groups the in construction industry is paramount. The corporation must understand their stakeholders, as well as their roles, needs, and interests. Without the involvement of key stakeholders, a construction venture will not be successful. The purpose of this paper is identifying key stakeholders of Bechtel Corporation, underlining their roles, and analyzing their potential in terms of power, influence, interest, and impact.

Contractors

The first stakeholder group is comprised of contractors. This includes the management team, supervisors, the finance team, architects, engineers, and various project managers. These stakeholders set the deadlines and provide guidance and control throughout the various stages of the project (Khosrowshahi & Arayici, 2012).

In terms of power, influence, interest, and impact, these stakeholders have the highest potential and are essentially the driving force behind projects in Bechtel Corporation. These are internal stakeholders that fill the company’s roster and have a permanent presence within the company. Type of stockholder according to Salience Model: Dominant.

Employees and Subcontractors

This group of stakeholders involves Bechtel’s low-ranking employees and various subcontractors hired on a contract basis to provide specialized expert support to the project (Khosrowshahi & Arayici, 2012). These subcontractors include plumbers, electricians, machine operators, transportation subcontractors, construction workers and various other groups involved in the project. While these groups have only moderate-low amounts of authority within the organization due to the fact they have to follow the instruction of the contractors, their influence, interest, and impact values are high, as their work is vital to the project. Type of stockholder according to Salience Model: Definitive.

Clients

For Bechtel Corporation, clients are stakeholders that either employ the company’s construction services or purchase living or commercial space built and owned by the company (Khosrowshahi & Arayici, 2012). They are the primary source of income for the company, and as such, are very important. Depending on the type of clients, their levels of control over the project may vary. For example, clients that employ the services of Bechtel Corporation to build their own facilities are automatically moved to Contractors in terms of power, as they have the final say about the project’s timelines, scope and size, purpose, etcetera.

However, clients who are purchasing apartments in an already constructed apartment block have low power and influence scores, as they do not have any direct power and influence on the project. However, their interest and impact are rated moderate-high. Type of stockholder according to Salience Model: Definitive.

Government

Any venture in construction requires high levels of operations with governmental facilities that provide the necessary documentation, inspection, and permissions to perform construction work on a site (Khosrowshahi & Arayici, 2012). In addition, the government takes issue with any legal matters pertaining construction and has the possibility to slow down or even shut down all construction processes severely should any necessary regulations would not meet approval. As such, the government agencies’ power and interest are rated high, whereas their impact and influence are rated moderate since they do not directly involve themselves in construction processes and are not interested in purchasing any property. Type of stockholder according to Salience Model: Definitive.

Community

This stakeholder group involves everyone living in an area surrounding the construction site or the company HQ. As such, they have different views regarding the project. While some would welcome the construction of a new trade center or an apartment block, others would be against it due to inconveniences associated with construction work (Khosrowshahi & Arayici, 2012). Typically, communities act passively towards the performance of construction companies unless the company breaks a law of some sort, or if inconveniences become too great to ignore. This stakeholder group is rated low for power, low for influence, moderate-low for interest, and moderate-low for impact. Type of stockholder according to Salience Model: Dormant.

Reference

Khosrowshahi, F., & Arayici, Y. (2012). Roadmap for implementation of BIM in the UK construction industry. Engineering, Construction, and Architectural Management, 19(6), 610-635.

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