Turner Construction Company IOM580 Hiroshi Ochiumi 1

Strategy Reputation for quality and management skills Offer risk management to clients Owners as partners Ability to share information 2

Uncertainty Reputation loss Appropriate balance of risk/conservatism Change in economic conditions Appropriate 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