Thursday 17 February 2022

Project Participants

Project participants realize different interests in the project process, form their own requirements in accordance with the goals and motivation and influence the project based on their interests, competence and degree of involvement in the project.

The composition of the project participants, their role, distribution of functions and responsibilities depend on the type, type, scale and complexity of the project, as well as on the phases of its life cycle. To determine the composition of the project participants, build its functional and organizational structures for each project at the stage of concept development, it is necessary to determine:

  • the subject area - goals, objectives, works and main results, that is, what needs to be done to implement the project, as well as its scale, complexity, valid deadlines;
  • the ratio of property involved in the project process (what is the cost and who owns?);
  • the main ideas of the project (how to do?);
  • the main active participants of the project (who will do it?);
  • the main passive participants of the project (who is involved in the project?);
  • What are the motivations of the project participants? (possible profit, loss, risk, etc.).

The answers to these questions allow you to identify project participants, their goals, motivations, determine relationships and on this basis make informed decisions about the organization and management of the project.

Let's look at the functions of some project participants in more detail.

 The initiator is the party that is the author of the idea of the project, its preliminary justification and proposals for implementation. The initiator can be almost each of the project participants, but in the end, the business initiative to implement the project should come from the customer of the project.

The customer is the main party interested in implementing the project and achieving its results. The customer, that is, the future owner and user of the project results, determines the basic requirements and scale of the project, provides financing of the project at the expense of its funds or the funds of attracted investors, concludes contracts with the main executors of the project, is responsible for these contracts, manages the process of interaction between all project participants.

Investor(s) is a party(s) that invests in a project. If the investor and the customer are not the same person, then investors are usually banks, investment funds and other organizations. Investors enter into business relations with the customer, control the execution of contracts and make settlements with other parties as the project is implemented. Investors are full partners of the project and co-owners of all property attracted through their investments until they are returned all the funds received under the contract with the customer or under the loan agreement.

The project manager is a legal (individual) person to whom the customer and the investor delegate the authority to implement the project - planning, control and coordination of work of all project participants. The composition of the functions and powers of the project manager is determined by the contract with the customer. However, the project manager and his team are usually tasked with comprehensive management and coordination of work throughout the life cycle of the project until the goals and results specified in it are achieved in compliance with the established deadlines, budget and quality.

The project team is a specific organizational structure headed by the project manager and created for the period of the project implementation. The task of the team is to perform project management functions to effectively achieve the goals of the project. The composition and functions of the project team depend on the scale, complexity and other characteristics of the project. However, in all cases, the team must provide a high professional level of all the duties assigned to it.

A contractor (general contractor) is a party or participant of a project that enters into relations with the customer and assumes the obligation to perform work on the contract (this may be the whole project or part therein). The functions of the general contractor include the conclusion of a contract with the customer (investor), the selection and conclusion of agreements with subcontractors, ensuring the coordination of their work and the adoption of the completed volume, the remuneration of co-executors. The contractor can be the project manager or other active participants of the project.

Subcontractor enters into a contractual relationship with a contractor or a higher-level subcontractor. Responsible for the performance of works or services in accordance with the terms of the contract.

A designer is a legal entity that performs design and research work under contract within the project. Enters into contractual relations with the general contractor of the project or directly with the customer.

A general contractor is a legal entity whose offer is accepted by the customer. Is responsible for the performance of works in accordance with the terms of the contract. Selects subcontractors and concludes agreements with them for the performance of individual works and services. In construction projects, the role of a general contractor is usually performed by construction or design and construction firms or organizations.

Suppliers are subcontractors that carry out various types of supplies on a contract basis (materials, equipment, vehicles, etc.).

Licensors are organizations that allocate licenses for the right to own a land plot, conduct trades, perform certain types of work and services, etc.

Authorities are a party that satisfies its interests by obtaining taxes from project participants, puts forward and supports environmental, social and other social and state requirements related to the implementation of the project.

The owner of the land plot is a legal (individual) person who is the owner of the land plot involved in the project. Enters into relations with the customer and transfers on a contractual basis the right to use or own this plot of land.

The manufacturer of the final products of the project carries out the operation of the created fixed assets and produces the final products. The main goal is to profit from the sale of finished products to consumers. Participates in all phases of the project and interacts with the main participants of the project. Its role and functions depend on the share of ownership in the final results of the project. In many cases, he is the customer and manufacturer of products according to the project.

 Consumers of final products are legal entities and individuals who are buyers and users of final products that establish the requirements for the products produced and services provided and form the demand for them. At the expense of consumers, the costs of the project are reimbursed and the profit of all project participants is formed.

Other project participants. The implementation of the project is influenced by other parties from the project environment, which, in fact, may also belong to the project participants. These are competitors of the main participants of the project; public groups and the population whose economic and non-economic interests affect the implementation of proe-ktu; sponsors of the project; various consulting, engineering, legal organizations involved in the project implementation process, etc.


is a one-time set of interrelated measures aimed at achieving specific results in the established material (resource) provision with clearly defined goals within a given period of time.

The functioning of the organization and the project differ significantly from each other according to such criteria as the type of problems solved, the nature of the activity, the degree of intensity of resource use, the possibility of using the accumulated experience, the price of errors, etc.

The main features of the project include quantitative measurement, time horizon, target orientation, life cycle, systemic functioning of the project, its elemental composition, existence in a certain external environment, etc. Depending on how the implementation of one project affects the results of another, there are projects: independent; mutually exclusive; conditional; replacements; synergistic. Projects are also classified according to the following criteria: class, type, type, scale, complexity, duration.

The project takes place surrounded by a dynamic external and under the influence of internal environments. For the successful implementation of the project, it is necessary to determine and take into account any possible action of these environments in relation to the project and its environment. Factors of the project's immediate environment include the areas of finance, sales, production, material and personnel support, infrastructure, as well as the management of the enterprise; to the internal environment — economic and social conditions for the implementation of the project, its organizational structure, participants, project management style, methods and means of communication.

Project participants realize different interests in the project process, form their own requirements in accordance with the goals and motivation and influence the project based on their interests, competence and degree of involvement in the project. Their composition, roles, distribution of functions and responsibility depend on the type, type, scale and complexity of the project, as well as on the phases of its life cycle.

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