2. Major Markets
Commercial
-
-
Health Care
Recession proof
State involvement
Info. well in advance
10.5% CAGR of sector
- Fastest growing mkt.
- Lacks constr. knowledge
- Imp. to users specs
Public
Hotel/Residential
Large portion of biz.
Cyclic in nature.
Highly o/p oriented
Fast, reliable & on-time reqd.
-
Demand vary city to city
Large chains at times
Customer has knowledge
Fast, reliable & on-time reqd.
3. Philosophy of contracts
Types of contracts
As on ‘83
Negotiated fee
Lump-sum
Constr. Mgr.
Distribution of projects based
on value. As on ‘83.
<$1m
$ 1 to 50 m
> $ 50 m
0
50
100
- Turner primarily believes in
philosophy of pre-negotiated
projects
- Contingency fee of 3% was
generally charged.
- Saving on project cost was
shared with customer.
Turner’s share @ 25%.
- Unless for agreed
contingency/force majeure
cost due to delay & over-runs
is borne by turner.
4. Selling Process
Final pricing and offer
30 to 45 min. ppt. to board
Send Proposal & References
Meet Decision maker
Locate prospect & Create awareness @ turner
5. Project Selection
Project selection
1. Contract type:
Lump-sum/Negotiated
2. Job Size:
Mix of big & small
3. Owner:
Long term + Margins
4. Staffing required:
Qty + Quality + trg.
5. Level of business in territory
6. Client (Turner is keen to work with)
6. Today’s decision
Option
Facts
Pros
Cons
Approve Commercial
– bldg. project
- Intro. by DA (30 yr)
- competitor: local
- Add Clientele
- Use efficiency of
territory A (comm.)
- Chance to optimize
operations
- Partner with
growing developer
- Unavail. of staff
- For territory A, only
one nature of biz.
- The schedules were
tight, with less slack
availability
Persuade Hospital
chain
- Territory A has not
built hospital in 10 yr
- In hospital domain,
it takes time till
materialization of
project.
- Gain expertise in
separate field
(Demand in hospital
field is non-cyclic)
- Strengthen staff
- Train youngsters
- No/less previous
experience
- Would consume
entire staff for
months
- Deal with new subs
- Estimation where
territory has less exp.
7. Today’s decision
1. The group should persuade Hospital business.
Reason: (a) Train new staff (b) Easily augment staff (c) less recession effect.
2. The second preference should be given to building up capacity for coordination with territories to meet target of “Goodnight Hotels”
3. Subsequently plan and rig-up manpower available at territory A, to not to miss
opportunity like of commercial building (where territory is already proficient)
4. Ask GM reason for not seeking prior approval of project.
