WHAT IS A TURNKEY PROJECT?
A turnkey project is a type of contract where a single entity, typically a contractor or a company, is responsible for the complete execution and delivery of a project from start to finish. This includes all phases of the project such as design, procurement, construction, and commissioning. The term “turnkey” signifies that the client can simply turn the key to begin using the facility or system once it is completed, as it is ready for immediate use. This approach minimizes the client’s involvement in the day-to-day management of the project, ensuring a seamless and hassle-free delivery.
WHAT ARE THE ADVANTAGES OF TURNKEY PROJECT ?
- Single Point of Responsibility: The contractor or company managing the project is solely accountable for all aspects, reducing the client’s burden of coordinating multiple parties.
- Cost Efficiency: With a fixed contract price, clients can avoid unexpected cost overruns, providing better budget control.
- Time Efficiency: Turnkey projects often adhere to strict timelines, ensuring timely completion and reducing delays.
- Reduced Client Involvement: Clients can focus on their core business activities while the contractor handles the entire project, from design to completion.
- Quality Assurance: The contractor is responsible for maintaining high standards throughout the project, ensuring the final product meets the required specifications and quality.
- Simplified Communication: With a single entity in charge, communication is streamlined, reducing the chances of miscommunication and project mismanagement.
- Expertise and Experience: Turnkey contractors typically bring extensive experience and specialized knowledge, leading to better project outcomes and innovative solutions.
- Risk Management: The contractor assumes the risks associated with the project, such as delays, cost overruns, and technical issues, providing the client with greater peace of mind.