TURNER’S BUSINESS STRATEGY
Turner’s strategy was to make the owner their partner in managing the project. It helped them attain the primary goal of any business; repeating clients. One of the greatest competitive advantages of their strategy was to develop and share accurate information with the owner while a project is in progress. Turner looked at IOR, the heart of their management system, as a forward-looking project management tool. They kept track of the database of IOR cost report broken down by job detail. This helped them evaluate any new projects using historical information along with the current situations. Involving staff from different hierarchy levels to prepare an IOR resulted in very powerful management and finance tool. Other competitive advantages were their key business strategies such as working with the Guaranteed Maximum Price (GMP) and savings participation with the owner. 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. Turner had a good attitude towards savings participation with their clients. Once the contingency is released as savings, they would share the savings with the owner based on the pre-agreed terms. Turner’s strategy was also to concentrate in the risk management side of the business including planning, scheduling and procurement of materials. Most of the projects they were associated with were constructed by subcontractors and managed by Turner. Turner does not compete solely on price but by showing owners that they have expert managers and they can spend their money efficiently. Another factor which differentiates Turner from their competitors is their organization structure. Having such an organization structure