Welch Company; Communication Metrics

THE WELCH COMPANY
440 Davis Court #1602
San Francisco, CA 94111-2496
415 781 5700





June 24, 1997                                                                        03 00050 97062401



Mr. Steve Rule
Turner Construction Company
353 Sacramento Street, 12th Floor
San Francisco, CA  94111

Subject:  Communication Metrics Competitive Advantage
                 Selling Cost/Benefit of Better Methods

Dear Steve,

As we discussed today, there are several ways Communication Metrics distinguishes Turner from its competitors. First, "metrics" for communication supplement cost and schedule control. The cost therefore largely fits within existing budget parameters, which can be seen from the Corps of Engineers report (appendix D, E). Second, "Project Manager" and "Cost/Schedule" roles evolved within the past 30 years to meet increased risks of a more complex business environment. If these roles were eliminated, the project would cost more, not less. The business environment is becoming more complex, with more requirements, players, laws and regulations. The "Information Highway" is a new phenomenon that offers opportunities, but also adds risk because faster information causes mistakes and lawsuits (recall David Vannier's remarks at Asilomar last year on Intel's findings).

Communication Metrics adds "intelligence" to information that proactively discovers problems before mistakes cause extra cost and delay. An example is the project meeting on November 5, 1996 for the Corps of Engineers.

Like the Corps of Engineers, Communication Metrics can enable Turner to meet changes occurring in the business environment. We can demonstrate these benefits by providing "business intelligence" for sales meetings that show, in an easy-to-understand Executive Summary, key management details and Action Items which the customer overlooked. Your competitors don't have this "intelligence." Your customers can then determine whether to accept Communication Metrics as an optional service which only Turner can provide. This win-win opportunity shows Turner is forward thinking, without obligating you in any way.

Sincerely,

THE WELCH COMPANY

Rod Welch