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Turnkey Development Agreement

A turnkey project or turnkey process (also written turnkey) is a type of project designed to be sold to any buyer as a final product. This runs counter to the Build-to-Order in which the designer builds an item to the precise specifications of the buyer or when an incomplete product is sold on the assumption that the buyer would finalize it. In a turnkey project, the client or developer doesn`t need to allocate a lot of resources for the project. It reduces the responsibility for management and coordination, increases the organization, while the client is dealing with only one organization that manages all phases. Unlike traditional construction contracts. in turnkey contracts, the project is developed in detail after the contract is concluded. This justifies the contractor having the right to make changes to his projects. Its costs and risks, in accordance with agreed contractual parameters, but without the client`s consent. Turnkey refers to something that is immediately ready to use, usually used for the sale or delivery of goods or services. The word is an indication that the customer, after receiving the product, must simply turn the contact key to make it operational, or that the key must be handed over to the customer. [2] Turnkey is often used in the construction industry, for example when it comes to the pooling of materials and work by the builder or general contractor to complete the house without the owner`s involvement. The word is often used to describe a house built on the developer`s land, with developer funding ready to move in for the client. When a contractor builds a “turnkey house,” he frames the structure and finishes the interior; It`s all over to the cabinets and carpets.

Turnkey is also commonly used in motorsport to describe a car that is sold with a powertrain (engine, gearbox, etc.) unlike a vehicle that is sold without a vehicle, so that other components can be reused. Turnkey development reduces the risk and conflict that many contractors are responsible for construction and labour. From the first phase of construction, a professional is responsible for avoiding unforeseen costs that not only increase the cost of the work, but also extend the delivery time. Similarly, this term can be used to promote the sale of an established business, including all equipment needed for operation or by a business provider that provides complete packages for business creation. [2] An example would be the creation of a “turnkey hospital” that would create a complete medical centre with medical equipment installed. A turnkey project or contract described by Duncan Wallace (1984) is:[1] The term turnkey is also commonly used in the technology industry, most often to describe prefabricated computer “packages” in which everything is necessary to perform a particular type of task (for example.B.

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