Chistyakova Nataly O.

Project stakeholders

The client is the principal party interested in the carrying out of a project and in its successful outcome. He or she is the owner and user of the project results. The customer determines the project main requirements and scope, ensures project financing from his or her own means and the means of attracted investors, concludes contracts with the main project executors, bears responsibility for these contracts, and controls the process of interaction between all the project stakeholders. The client assumes responsibility for the project as a whole before society and law. The initiator is a stakeholder who is the author of the main idea of the project, its preliminary feasibility study and proposals for project implementation. As initiator may come forward practically any of the future stakeholders and even an outside person or organization. Frequently, though by far not always, the initiative originates with the client. However, in any case, it is important for the success of the project that the client should be actually interested in project implementation. Investors are the stakeholders who invest funds in the project, for example, by means of credits. The investors’ objective is maximization of profits on their investment from project implementation. If the investor and the client are not the same person, then as investors usually come forward banks, investment funds and other organizations. Investors enter contract relations with clients, control contracts execution and make settlements with the other parties in the process of project execution. Investors enjoy full rights as partners of the project, and they are owners of all the property that is acquired due to their investments until they have been paid in full according to the contract with the client or by the credit agreement.

Project stakeholders Project manager is the person who is empowered by the client and investor to direct the work of carrying out the project (planning, control and coordination of the work of all the stakeholders). Project manager’s functions and authority are determined by the contract with the client. Usually, the project manager and his team are given the task of comprehensive direction and coordination of work during the project life cycle until the objectives and targets outlined in the project have been reached within the established constraints on deadlines, budget and quality. The project team is a specific organizational structure headed by the project manager and set for the period of carrying out the project. The project team’s task is performing the functions of project management until the project objectives have been effectively reached. The project team’s composition and functions depend on the scope, complexity and other characteristics of the project. However, the team members must ensure a high professional level of performing the duties imposed on them within the framework of the project. The contractor (main contractor) is the stakeholder entering relations with the client and assuming responsibilities for carrying out the work according to the contract - it can be the entire contract or its part. Main contractor’s functions include concluding a contract with the client (investor), selection and drawing up contracts with subcontractors, ensuring the coordination of their work, hiring and paying co executors. As a contractor there may come forward the project manager and other active stakeholders.

Project stakeholders A subcontractor is a person (including a legal person) who enters contractual relations with the contractor or subcontractor of a higher level. He is responsible for the execution of work or services in accordance with the contract. The designer is a legal person performing design and research work by the contract within the framework of the project. The designer enters contractual relations with the main project contractor or directly with the client. The main builder and contractor is a legal person who is selected for the project execution. He is responsible for the execution of work in accordance with the contract, selects subcontractors for performing separate work packages and services and concludes contracts with them. Suppliers are subcontractors carrying out various kinds of supplies on a contractual basis – materials, equipment, transportation means, etc. Licensers are organizations granting licenses for land ownership rights, for holding auction to perform certain kinds of work and services, and so on. Government bodies are the party which satisfies its interests by receiving taxes from the stakeholders, as well as putting forward and maintaining ecological, social and other public and governmental requirements connected with the realization of the project.

Project stakeholders The land owner is the legal or physical person who is the owner of the land involved in the project. He or she enters relations with the client and transfers on a contractual basis the right of use or ownership of this land. The project final product producer operates basic funds and produces the final product. His or her primary objective is in getting profit from the sale of the ready production to users. The producer takes part in all phases of the project and interacts with main stakeholders. His or her role and functions depend on the share of property in the project final results. In many cases the producer is the client and the investor of the project. The final production users are legal and physical persons who are the buyers and users of the final production, determining requirements of the final product and services as well as the scale of market demand. It is due to the users’ means that the expenses for the project are covered and profit is formed for all stakeholders. Other stakeholders. The project execution is influenced also by other stakeholders from the project environment, who, in fact, can be referred to stakeholders as well: stakeholders’ competitors,  public groups and members of public whose economic and non-economic interests are affected by the project execution,  project sponsors,  various consulting, engineering and judicial organizations involved in the process of project execution, etc.

Project stakeholders So-called “silent” stakeholders : the future generations (they do not exist yet, but their interests must be taken into account so as not create for them problems by our interference in present- day reality, as it has been done to us by the past generations – debts, depletion of even renewable resources, the problem of nuclear and industrial waste, acid rain, and so on); the past generations (they are no longer here, but their interests are presented by the culture they left after themselves. We must do no harm to the material and spiritual culture); the environment (we must not endanger our environment, both animate and inanimate nature).

The influence of environment factors on various types of projects (expert estimates) Project execution stagesStakeholders CPMDCBCSCBGBGB SOLEPpPU Project conception development *+ Project analysis and viability assessment *+ Project development +* Design of technological processes *+++++ Selection of land site, surveying, receiving permits *++++ Basic design (Engineering design) *++++ Holding auctions, concluding contracts ** Detailed design +*+++++ Purchases and supplies *++++*+++ Construction and installation work +*++++ Supervision of the execution +*++*+ Bringing to a production state and turning out production *+++++*+