Turner Construction Company: Project Management Control System

657 Words Apr 8th, 2015 3 Pages
Turner Construction Company: Project Management Control Systems
1. What is Turner’s business strategy?
Their greatest competitive advantage is providing accurate information to the owners, creating a partnership. Turner’s business strategy is to build on this partnership to ensure repeat business. They keep the customer informed on every milestone in the project and use the IOR to communicate financial updates and construction progress. They have proven time and time again that their expert management knowledge and delivery saves the developer time and money in the end.

2. What contingencies could invalidate the strategy?
This strategy is compromised with how and when Turner decides to release capital. If Turner decides to release
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4. If you were Gary, what would you say to? a. Turner senior management?
Since Turner has reported only 66% of the $500,000 worth of savings requested in the form of C-Holds, which are general line item reserves that are not spent and usually reported as savings, I think it would be too risky for the senior management team to give the OK to release the $500,000 to the owner. There is still 5 months left in the project and they would have to be extremely conservative in their C and E hold spending. Before the owner conducted any business with them, it should be assumed he knew of their reputation as being extremely careful and conservative. If the project had a 90-95% completion rate, there would be much more confidence in releasing the savings.

b. Kent Square owner?
While the IOR shows we are on budget there are 5 months remaining on the project and due to a pending strike and cleanup that may need to be addressed that could result in overtime we are not prepared to release those funds at this time. We will review the project status in 60 days and if then numbers are holding we can release the funds then.
c. Your project team?
We committed to the customer to re-address releasing the requested funds in 60 days when we are a little closer to completion. The project must continue to run smoothly and every precaution should be taken.

5. What are the lessons for your organization?
It is difficult to please everyone
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