The Globe Construction Company Case Study

Turner Construction Company: Project Management Control System

657 WordsApr 8th, 20153 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…show more content…

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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The Globe Construction Company

Case Study Philippines

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Topic: Bill of materials,

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Construction, Hierarchy

Published: September 10, 2012

Pages: 2 (474 words)


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Personally, I think both parties were correct since Project Managers are really having a hard time

whenever they have an urgent request of materials and explaining these over the phone is a hassle because

there are things that are hard to discuss through calls which could cause delay of completion of the project.

As for the Purchasing Department, it is also hard to implement the demands of materials needed

because they can't always acknowledge these since they also have to see whether these materials are in Bill

of Materials and/or if available in the central warehouse. Like what Mr. Remigio have said, buyers should be

located at the job site so it can attend the demands of materials and that he/she is always available whenever

he/she is needed, hence they will be reporting to the Project Manager.

On the other hand, placing the buyers at the job site would really make a conflict in costs. So in able

to avoid this, they will be in charge in communicating to the Purchasing Manager to be informed with the

policies and which is which is not included within the scope of materials and funds, before reporting to the job

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site, so that they will have the knowledge to discuss things to the Project Manager.

In that case, Project Managers have the ability to discuss things to the buyers face to face and

buyers have the ability to make...

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