Turner Construction CompanyGroup 9:

Rohan, Gowri, Soni, Parag & Archal

Major Markets

Commercial

Health Care

Public

Hotel/Residential

- Large portion of biz.- Cyclic in nature.- Highly o/p oriented- Fast, reliable & on-time reqd.

- Recession proof- State involvement- Info. well in advance- 10.5% CAGR of sector

- Fastest growing mkt.- Lacks constr. knowledge- Imp. to users specs

- Demand vary city to city- Large chains at times- Customer has knowledge- Fast, reliable & on-time reqd.

Types of contractsAs on ‘83

Negotiated feeLump-sumConstr. Mgr.

Philosophy of contracts

0 20 40 60 80 100

Distribution of projects based on value. As on ‘83.

< $ 1 m$ 1 to 50 m> $ 50 m

- 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.

Locate prospect & Create awareness @ turner

Meet Decision maker

Send Proposal & References

30 to 45 min. ppt. to board

Final pricing and offer

Selling Process

Project Selection

Proj

ect s

elec

tion

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)

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.

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 co-ordination 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.

Thank You