Overview

Tēnā koutou learners, welcome to Module 1: Communication in the Construction Industry. This module equips you with the knowledge to identify, manage, and engage with construction project stakeholders. It introduces the fundamentals of construction contracts, catering to both clients and project personnel.

Additionally, this module outlines the communication requirements specific to construction projects. It provides you with tools to enhance effective communication with a diverse array of stakeholders. You will learn methods and techniques to improve your verbal, written, and visual communication skills, ensuring clarity and efficiency when sharing information.

What is a Stakeholder?

A stakeholder is simply a person or an organisation that has an interest in your construction project. Having an interest means that they are affected by the project in some way. This interest could be financial. For example, when a client pays a builder for a house renovation, they have a financial interest in the project. An interest can also be social. If a road is blocked due to construction traffic, then the surrounding community is affected by that project.

Some stakeholders are internal, meaning they work for your organisation. For example, a builder employed by a construction company is an internal stakeholder. External stakeholders are people outside the organisation such as the client who commissioned the construction project.

Why Worry About Stakeholders?

Construction projects, by their nature, involve the input of a range of people and organisations. The various stakeholders have the potential to impact the success of the project positively or negatively.

• A satisfied client may help build your organisation’s profile, whereas a disappointed one may harm your reputation.
• A skilled, well supported subcontractor will contribute positively to the project, whereas a subpar one may damage it.
• A good relationship with suppliers will ensure ongoing access to required supplies.

Stakeholder Engagement

Stakeholder engagement is the process of establishing and maintaining relationships with stakeholders. It involves communicating with each stakeholder to determine their expectations from the project and keeping them informed on project progress.

Stakeholders and Contracts

Some stakeholders will have contractual relationships with the construction company. The client will have a contract that stipulates what is going to be constructed, at what cost and within what timeframes. Contractors will have agreements that describe what tasks they will perform, and the remuneration (pay) they will receive. These contracts formalise the relationship with the stakeholders.

Communication in Construction

Effective communication is important in any project that involves more than one person, and construction projects are no exception. Good communication will help deliver a construction project that is on time, on budget and fulfils all requirements.

All project stakeholders will need to be communicated with during the life of the project. Some stakeholders will only be consulted once, whereas others will be communicated with regularly throughout the life of the project. Communication requirements will vary between stakeholders. 

The following information will help you plan your study.

You are free to plan your studies in the way that works best for you, but we know that guidance on how to do this is also helpful. We suggest the following way to navigate through the learning content over the next few weeks:

Me tīmata tatou! It is time to get started with your first topic in this communication module. You will learn to identify stakeholders in a construction project and be introduced to the concept of stakeholder management.