Turner Construction Company

Turner Construction Company

IOM580Hiroshi Ochiumi

1

Strategy

Reputation for quality and management skillsOffer risk management to clientsOwners as partnersAbility to share information

2

Uncertainty

Reputation lossAppropriate balance of risk/conservatismChange in economic conditionsAppropriate mix and quality of project team

3

Indicated Outcome Report System

“No one spends as much time as us.”“IOR is a best efforts prediction at any point in time of the total expected cost and earninigs…”“Reports would be useless if not talked about.”“IOR review meetings are a great tool for prompting discussion among my whole team.”“I go back to the IOR when I really need to understand the issues.”

4

Bob Meyer

“Some people may think that we spend too much time dealing with the contingency, but I don’t think that is true. The time we spend here is really forcing our managers to keep revising our strategy with our clients on each job.”

5

What should Gary Thompson do?

Yes, let’s release $500,000

No.

6