...Burj Khalifa Turner Construction Company Executive Summary Turner’s business philosophy is to work very closely with customers on all its projects. It strives to share the most up to date and accurate information with them. Thus, making customers a partner in the business risk and rewards. It also empowers its employees to record accurate information by decoupling individual bonuses from project performance and tying it to overall corporate performance. It has a well-structured management control system through Indicated Outcome Reports which help Turner to identify and manage not only the risks but also potential savings in the projects. We recommend that Turner could release $200,00 of C-holds and balance $300,000 from construction contingency. This is keeping in mind that it is a new customer and releasing the funds would help Turner in further nurturing the relationship. However, it needs to keep a close watch on scope enhancements being approved by owners and cost control. Turner: Background and Simon’s perspective Core Values Turner’s business model revolves around the following core values: • Make clients your partners It works very closely with the owners and makes them partners in managing the project. Through regular status updates, it keeps them informed about potential risks and cost savings...
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...Case:Turner Construction Company: Project Management Control Systems 1. What is Turner’s business strategy? While it may seem that Turner’s business strategy is focused around building construction, their main focus is in risk management. They maintain the risk of losing money, customers, stock shareholders and reputation. Their strategy is to make the owners of the projects and building their partners in the process of managing the project. The focus is to try and get repeat business, which is very important to the Turner’ corporation as it is one of their greatest ways to beat out other competition. They show off that while they may not be the cheapest, they do have the skills to complete the projects as well as expertly manage and spend the money associated to projects. 2. What contingencies could invalidate the strategy? There are many contingencies to consider when thinking of how they could affect the strategy at the Turner corporation. Because of different pressure there is a tendency to hold onto contingencies until the last minute. This goes against the strategy of keeping a healthy relationship with owners to ensure repeat customers. If the wait is too long on holding the contingencies then relationships with clients can be strained causing issues. 3. Does the IOR system force managers to address contingencies? The IOR system does force managers to address contingencies based on the fact that because it shows an estimated, total expected cost and earnings from...
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...FARSIGHTED PROJECT CONTRACT MANAGEMENT: INCOMPLETE IN ITS ENTIRETY PROFESSOR J RODNEY TURNER, (Department of Marketing and Organization, Rotterdam School of Economics Erasmus University Rotterdam) 1. PROJECT ORGANIZATION: COOPERATION VERSUS CONFLICT There are two ways of viewing a project organization, what I would consider to the correct way, and the normal way, respectively: • • a temporary organization, (Turner and Müller 2003), through which the owner assembles resources and motivates them, in a climate of cooperation, to achieve their objectives; a market place, in which the owner buys the project’s outputs at the cheapest possible price, in a climate of conflict with their contractors, where one will win the other lose. In the more common approach, the client adopts the mindset they are going to buy the project’s outputs in the local bazaar, and negotiates hard to achieve the lowest possible price from the vendor (contractor). The negotiation is viewed as a win-lose game. A climate of conflict and mistrust develops, and this spills over into project delivery, usually leading to a lose-lose outcome. Scott (2001) says this approach results in misalignment between the client's and contractor's objectives, between the objectives of multiple contractors, and between the client's objectives and the contractor's remuneration. Turner and Müller (2003) view the project as a temporary organization, through which the client assembles resources to achieve their objectives. As...
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...Knowledge Management and Organizational Learning at Turner Construction Co. By Emma Skogstad How does Turner Construction Co., a partner in APQC’s Integrating Knowledge Management and Organizational Learning study and the largest commercial builder in the United States with 6,000 employees and offices in almost every major city across the country, ensure its employees have access to the training and tacit knowledge they need to perform their jobs? According to James Mitnick, a senior vice president at Turner, the organization focuses on performance-based learning. Performance, he says, is where learning, knowledge, and collaboration intersect. The Turner knowledge network is the enabler that brings those three components together to drive performance. The philosophy of the Turner knowledge network is: “to provide access to learning and knowledge across the company in a consistent and organized format to assist in the development, recruitment, and retention of staff.” History of the Turner Knowledge Network In 1999 Turner was acquired by Hochtief AG1, a German-based construction services provider. At the time, Turner’s new chairman, Tom Leppert, approached Mitnick with a vision for expanding the organization by aligning the learning and business strategies. Leppert believed this alignment was necessary to achieve the growth goals he set out for the organization: to expand by 15 to 20 percent each year--meaning the organization would have to add between 500 to 1,000 new engineers...
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...QUESTION 3: Discuss on the Effects of Procurement System in the performance of construction projects I. INTRODUCTION Procurement is also called as sourcing, which means gathering services and goods from the preparation and of request through the approval of statement for payment. This involves purchase planning, financing, making the purchase, inventory control and stores, specific development, standard determination, supplier research and selection, supply contract administration, disposal and other related functions, value analysis and price negotiation. Procurement plays major role in work relationship between parties involved in the construction process. Identify the primary and secondary objectives of the projects, Risk innate in the proposal, Environmental determination, which it will be implemented and selecting the appropriate procuring method for the proposed project. Procurement was not about a building, it was about entire project which includes obtaining goods and services, also includes obtaining human recourses like, consultants, contractors, sub-contractors, suppliers and specialists for some purpose. It is the very important step which can show some significant impact on the project success. Procurement is essentially a series of considered risks – each method has individual strengths and weaknesses, which must be carefully calculated by clients and industry alike. There are a number of different types of procurement routes available for clients to select...
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...OPTIONS SUBMITTED BY EBITUNMISE DANIEL O. QSV/10/1220 COURSE CODE: QSV 512 7TH JULY, 2015 1.0 INTRODUCTION Strategies for the procurement of building projects have not changed significantly in the last 25 years, though time and cost overruns are still prevalent throughout the industry (Smith and Love, 2001). In a response to reduce the incidence of time and costs overruns, the disputes that may often arise, and the likelihood of project success, alternative forms of procurement method such as partnering and alliancing have been advocated (Love et al. 1998). Not all forms of procurement method, however, are appropriate for particular project types, as client objectives and priorities invariably differ (Skitmore and Marsden, 1988; Love et al. 1997). The objectives and priorities of a client need to be matched to a procurement system. To do this effectively, it is essential that the characteristics of various procurement systems and selection methods available are understood by clients and their advisors before a procurement method is selected. In this report, the characteristics of the most common procurement systems and methods are presented. In conjunction with this report the reader should also refer to the material developed by the New South Wales Government (2005) ‘Procurement Methodology Guidelines for Construction’ and the Western Australian Department of Housing and Works ‘Local Government Procurement Guide’ (2006). 2.0 PROCUREMENT STRATEGY New building or renovation/adaptation...
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...Construction Project Controls: Cost, Schedule, and Change Management UP-201 September 2004 CURT Owner Member Companies Abbott Laboratories Air Products & Chemicals, Inc. Ameren American Electric Power Baxter Healthcare Corporation Boeing Company Caterpillar Inc. Citigroup ConocoPhillips DTE Energy The Dow Chemical Company E.I. Dupont De Nemours & Company Eastman Kodak Company Ernst & Young ExxonMobil Chemical Company FMC Corporation FirstEnergy Corporation General Electric Company General Mills, Inc. General Motors Corporation HCA Healthcare Corporation Hercules, Inc. Honda of America Mfg., Inc. IBM Intel Corporation Johnson & Johnson Kansas City Power & Light Company The McGraw-Hill Companies MeadWestvaco Corporation Merck & Company, Inc. Owens Corning PSEG Power, LLC Pfizer, Inc. The Procter & Gamble Company Rohm and Haas Shell Global Solutions (U.S.), Inc. Southern Companies Sunoco, Inc. TECO Tampa Electric Company Toyota Motor Mfg. North America Tyco International U.S. Army Corps Of Engineers U.S. General Services Administration The University Of Cincinnati Associate Member Companies Alberici Group, Inc. BE&K Bechtel Egizii Electric, Inc. Fluor Corporation Hunt Construction Group Jacobs Engineering Group Rudolph/Libbe Companies The Shaw Group, Inc. Tetra Tech FW Inc. Turner Construction Company Zachry Construction Corporation Association Associate Members Associated Builders and Contractors (ABC) Associated General Contractors of America (AGC) Mechanical Contractors...
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...JAMIE TURNER AT MLI, INC.: • Jamie Turner reflected as he waited for his boss, Pat Cardullo, to arrive at office in September • At age 32, Turner was struggling in his 3rd marketing management position since completing his MBA 6 years earlier • Only 6 months into his current assignment at Modern Lighting Industries (MLI), he was starting to worry that his string of previous successes had hit a serious snag o Working for Cardullo had become as confusing, unpredictable, and frustrating as anything he’d ever experienced • Cardullo, President of MLI, had interviewed Turner and invited him to join the company as VP for Marketing and Sales o Turner found Cardullo smart, friendly, even charismatic o Cardullo offered him a free hand in reorganizing the market area, and had all but guaranteed Turner would take over as President within 2 years • Before long things began to go wrong: Cardullo started to seem distant and critical, and he intervened frequently in marketing decisions, sometimes undermining or even reversing Turner’s decisions • The turnaround Cardullo was attempting to engineer at MLI had stalled, sales were again declining and things in general were rapidly deteriorating • Turner felt it was critical to resolve his differences with Cardullo before Alan Oliver, CEO of Triple S (MLI’s parent company), arrived to review the situation in Chicago o Hoping to talk things out, he invited Cardullo on 3 different occasions to talk but Cardullo declined all 3 invitations ...
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...Jamie Turner at MLI, Inc. “Had I known how hard this job would be, I might have thought twice about leaving the one at Wolf River,” Jamie Turner reflected as he waited for his boss, Pat Cardullo, to arrive at the office on a blustery September morning. At 32, Turner was struggling in his third marketing management position since completing his MBA six years earlier. Only six months into his current assignment at Modern Lighting Industries, Inc. (MLI), he was starting to worry that his string of previous successes had hit a serious snag. Working for Cardullo had become as confusing, unpredictable, and frustrating as anything he’d ever experienced. When Cardullo, president of MLI, had interviewed Turner and invited him to join the company as vice president for marketing and sales, Turner had found the older man smart, friendly, even charismatic. Cardullo had offered him a free hand in reorganizing the marketing area, and had all but guaranteed that Turner would take over as president within two years. Before long, however, things began to go wrong: Cardullo started to seem distant and critical, and he intervened frequently in marketing decisions, sometimes undermining or even reversing Turner’s decisions. The turnaround Cardullo was attempting to engineer at MLI had stalled, sales were again declining, and things in general were rapidly deteriorating. Turner didn’t know whether to be happy or anxious—or both— when Alan Oliver, the CEO of MLI’s parent company, announced...
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...KAFTAN Jamie Turner at MLI, Inc. “Had I known how hard this job would be, I might have thought twice about leaving the one at Wolf River,” Jamie Turner reflected as he waited for his boss, Pat Cardullo, to arrive at the office on a blustery September morning. At 32, Turner was struggling in his third marketing management position since completing his MBA six years earlier. Only six months into his current assignment at Modern Lighting Industries, Inc. (MLI), he was starting to worry that his string of previous successes had hit a serious snag. Working for Cardullo had become as confusing, unpredictable, and frustrating as anything he’d ever experienced. When Cardullo, president of MLI, had interviewed Turner and invited him to join the company as vice president for marketing and sales, Turner had found the older man smart, friendly, even charismatic. Cardullo had offered him a free hand in reorganizing the marketing area, and had all but guaranteed that Turner would take over as president within two years. Before long, however, things began to go wrong: Cardullo started to seem distant and critical, and he intervened frequently in marketing decisions, sometimes undermining or even reversing Turner’s decisions. The turnaround Cardullo was attempting to engineer at MLI had stalled, sales were again declining, and things in general were rapidly deteriorating. Turner didn’t know whether to be happy or anxious—or both— when Alan Oliver, the CEO of MLI’s parent company, announced that...
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...pp 70-82, August 2012. URL: http://www.ejbss.com/recent.aspx ISSN: 2235 -767X IMPACT OF EMPLOYEES SAFETY CULTURE ON ORGANISATIONAL PERFORMANCE IN SHELL BONNY TERMINAL INTEGRATED PROJECT (BTIP) Dr. M.O. Agwu, MNIM, MNISP Department of Business Administration, Niger Delta University, Wilberforce Island, Bayelsa State ABSTRACT he paper focuses on the impact of employees’ safety culture on organizational performance (improved management/employees safety practices, enhanced productivity, increased profitability and reduced accident/ incident rate) in shell bonny terminal integrated project. It defines employees’ safety culture as a product of individual and group values, attitudes, perceptions, competencies, and patterns of behavior that determine the level of commitment, style and proficiency of an organization’s safety management system. It assumes that inculcation of employees’ safety culture on the workforce at the task level using behavior-based safety culture approach (enforcement and education) has an influence on employees’ safety performance as well as on company performance: enhancement of productivity, profitability and loss control through reduction of accident/incident rate. The paper posits that: if construction companies in Shell Bonny terminal integrated project (BTIP) inculcate safety culture in their workforce through changing employees’ attitude to safety, there will be an improvement in employees’ obedience to safety rules and regulations...
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...Change, Flexibility and the Management of Projects Daniel Adler University of Technology Sydney, Australia Daniel.adler@student.uts.edu.au ABSTRACT Managing scope on projects is universally recognized as a challenge for business. This paper will argue that the activity theory concept of contradiction is a useful method with which to re-frame debates around the origins of scope change that moves away from an either or approach to based on trade-offs between for example efficiency and flexibility. Scope change will be demonstrated to be a natural part of projects, and that managers who embrace it can benefit from the opportunities that arise. Using one live manufacturing project as a case example, the paper will conclude that both hard and soft paradigm stances in terms of project management can be accommodated under the activity theory banner of contradiction, giving rise to the potential transferability of this classification across all types of projects. Keywords: Project Management; Manufacturing; Cultural Historical Activity Theory (CHAT); SME’s; Scope. 1. Introduction Scope change on projects can be very challenging for managers as it can be an admission that the original plans were inadequate, thus calling into question the expertise of the people who planned the project. Consequently when scope change results in time delays, budget increases, and disagreements about quality, this can often lead to evaluations of projects as failures and the Standish...
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...INTRODUCTION TO PROJECT MANAGEMENT C H A P T E R 1 Introduction To Project Management Project management offers a structured approach to managing projects. The purpose of this book is to outline the latest planning and control techniques used by industry, commerce, sport and domestic projects, and particularly those used by the project planning software and referred to in the Project Management Institute's (PMI) project management body of knowledge (PMBOK), and the Association of Project Manager's (APM) body of knowledge (bok). As the use of projects becomes more pervasive, so more managers are entering the field of project management. Their success will be helped by their ability to develop a fully integrated information and control system to plan, instruct, monitor and control large amounts of data, quickly and accurately to facilitate the problem-solving and decision-making process. To achieve these goals the project manager needs a comprehensive toolkit - as a plumber works with a bag of tools, so the project manager works with a computer producing organisation charts, work breakdown structures, barcharts, resource histograms and cash-flow statements. Projects have traditionally been managed through a classic functional hierarchical type organisation structure, but with the increase of multi-disciplines, multi-departments, multi-companies and multi-national projects so there has been a move towards management-by-projects, project teams and matrix organisation structures...
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...PROJECT REPORT ON PERFORMANCE MANAGEMENT In N.H.P.C at Baira Suil Power Station Chamba (H.P) FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF MASTER OF BUSINESS ADMINISTRATION UNDER THE GUIDANCE OF: SUBMITTED BY: PROF. SWETA SAURABH AKANKSHA SHARMA MBA 2012-14 SCHOOL OF BUSINESS GALGOTIAS UNIVERSITY Certificate from Faculty Guide This is to certify that the project report Performance Management has been prepared by Ms. Akanksha Sharma under my supervision and guidance. The project report is submitted towards the partial fulfillment of 2 year, full time Master of Business Administration. Name & Sign of Faculty Prof. Sweta Saurabh Date: Declaration I, Akanksha Sharma, Roll no 120SOB102189 student of MBA of School of Business: Galgotias University, Greater Noida, hereby declare that the project report on “Performance Management” at “Galgotias University” is an original and authenticated work done by me. I further declare that it has not been submitted elsewhere by any other person in any of the institutes for the award of any degree or diploma. Name of the student Akanksha Sharma MBA 2012-2014 Date: ACKNOWLEDGEMENT My project report has helped me to gain professional experience which apart from giving me an opportunity to...
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...THEORY OF CONSTRAINTS PROJECT TIME MANAGEMENT IN MULTIPLE, CONCURRENT PROJECTS: INVESTIGATION OF ASSUMPTIONS REGRADING HUMAN BEHAVIOUR DURING PROJECT PLANNING J. C. Kago1 and P. J. Viljoen2 1 Masters in Project Management, Department of Engineering and Technology Management, University of Pretoria, Pretoria 002, South Africa. 2 Formerly Department of Engineering and Technology Management, University of Pretoria, Pretoria 002, South Africa. ABSTRACT CCPM has attempted to account for certain human behaviour patterns during project planning and execution which other time management techniques neglect. CCPM gives this human behaviour as a major influence on amount of contingency provided in activity duration estimates. The human behaviours however are assumptions and justification of CCPM relies heavily on these assumptions. The problem is that we do not know if the human behaviours assumed are an important influence on contingencies provided in activity duration estimates during project planning. The main objective of this research is therefore to determine, using empirical data how stakeholders in the construction industry rate the influence of human behaviour on contingency provided in activity duration estimates. Other factors that influence contingency provided have been identified and their relative importance investigated. 1.1 Introduction As competition increases, organisations survival will be determined by their ability to make...
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