The typical construction operations in territory structure, Refer Appendix 2. Turner aims to be the highest value provider of global construction services and technical expertise.
Their managers are trained to be conservative and have been threatened to their lives to protect their gross earnings on the job.
Turner adopts a decentralised structure where the TGM will then reports to one 1 of the five 5 group vice presidents who will then report to three 3 division executive vice presidents EVPs wherein all of three were members of the Corporate Executive Group. Projecting itself as quality work not competing on price 3.
By releasing a portion from contingency fund we will allow Turner Construction Company to mitigate contingencies, while at the same time ensuring we do not end up with under estimating cost and expenditures.
Decentralized organization structure Contingencies that could threaten Turners strategy viability High running costs in making IOR, decision making and negotiation with owners Contingencies pertaining to cost Contingencies pertaining to time after releasing the savings some situation like strike, overtime demand etc might occur Cost overruns that occur because of improper cost estimates which happen because of difficulty in estimating Not all cost engineers are equally adept at making IOR Need executives who have been exposed to all parts of business Un natural and frequent changes in scope Owners experience and knowledge in making decisions is critical.
As the p oje t p og esses ith the adjusted a ou ts ea h ese e pool ill e e hausted at the e d of the p oje t. Decision to restructure the company is undertaken to increase earnings and improve production efficiency.
Even if all the deliverables are met and the objectives are satisfied, if the key stakeholders are not happy, then no one is happy. Turner shows that they are expert managers and can spend money efficiently 3.
The company strongly believes that the contingency reserves are deemed necessary. It requires that the project be monitored and progress measured so that any deviations from the project plan and particularly the project schedule, are minimized.
As of today, Turners is the biggest general contractor in America and its services encompasses various market segments including aviation, pharmaceutical, retail, healthcare, education, commercial, sports, and green building.