1. What is Turner's business strategy? How does it differ from the competition?
Guaranteed Maximum Price: Usually the contracts are negotiated with Cost plus basis up to the guaranteed maximum price(GMP) stipulated in the contract. Turner's fee for managing the project was stipulated and fixed in the contract. Costs in excess of GMP were exclusively absorbed by Turner.
Savings participation: Once the contingency is released as savings, Turner will share the savings with the owner based on the pre-agreed terms.
Risk Management and Sub-contracting: Turners strategy is to concentrate in the risk management side of the business including planning, scheduling and procurement of materials. Most of the projects are awarded to subcontractors and are managed by Turner managers.
Management Expertise and Efficient money management: Turner does not compete solely on price and they compete by showing owners that they have expert managers and they can spend their money efficiently. They realize incentives for careful cost management.
Accurate Project task Estimation: Turner keeps track of the database of IOR style cost report broken down by job detail. This will help them evaluate any new projects using historical information along with the current situations. Doing proper evaluation of the business tasks, providing the best product and best quality are keys to the Turner's business strategy.
Turner's strategy is to make the owner their partner in managing the project. One of the greatest competitive advantages of their strategy is to develop and share accurate information with the owner while a project is in progress. Depending on the experience and demands of the owner they share all or part of IOR cost detail with the owner. Other ...