The feasibility process of public construction projects is under the influence of stakeholders, who give direction to public resource allocation. Therefore, the analysis of stakeholders in this process is critical. An inductive qualitative approach was adopted using the grounded theory method to provide a theoretical explanation of stakeholders’ behaviors. Under the insight of structuration theory, the results indicated that the challenges are derived from various interrelated factors, leading to the emergence of improper participation as a macro-structural phenomenon with multilateral interaction with a power-oriented relationship as a micro behavior in the feasibility process at the agency level.