1. What is Turners 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 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 business
strategy.
Turner 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
