Turnkey is a meaningful term that comes under project management, it is a product or service that is designed, delivered, manufactured or installed completely complete and ready to operate. The term turnkey is closely related to the end user, which implies that a key must be turned and the product or service must be used. In training, a turnkey is an employee sent somewhere to learn a specific skill. The definition of turnkey very effectively points, to an even broader connotation.
What are examples of turnkey projects?
Example: In any country, ideas of public benefit are implemented by the government in the form of plans. As such, many government-owned public housing projects are turnkey projects. A private developer undertakes all activities necessary to build the project, including land purchase, permits, plans, and construction, and sells the project to the housing authority. Examples of turnkey projects, there are turnkey projects, not only from the government level but also from the private sector.
What is a turnkey contract?
A turnkey contract is the contractor’s responsibility for the design and construction of a facility in a loose sense. In a project management control (which can sometimes be a large project, such as the construction of an airport or a container terminal), the basic idea is that in a turnkey contract, the contractor must deliver the works ready for use at an agreed price and by a specified date. As we know, this is the job holder’s first responsibility and love towards his own work field or position. Therefore, the reality is that the employer wants to be actively involved in the project at all stages. Turnkey contracts are also synonymous with terms such as “package contract”, “design and build”, or design build. In French one uses the expression cle en mains, in Spanish llave en mano and in German schlselfffertig. These types of contracts are also known as EPC contracts (Engineering, Procurement and Construction). An explanation related to a turnkey contract can only be explained in the shadow of the engineering facet of project management.
What is a turnkey project?
The Oxford dictionary defines a turnkey project as a suitable definition. According to this, the term “turnkey” refers to anything that is complete and ready for immediate use. When applied to any project in its development, the meaning of a turnkey project remains the same. A turnkey project is one in which a company designs, develops and equips with all facilities under a contract that comes as part of project management. It is transferable and is handed over to any buyer when the business is ready to operate. Obviously, the company responsible for building a turnkey project does so for the cost agreed upon in the contract. The company’s operations include design, fabrication, installation, after market support and technical service for turnkey projects. In any case, a turnkey project is an unavoidable and important part of project management.
A turnkey contract has many (more than one) components.In other words, turnkey contracts include at least three elements.Design of the contractor’s facility required for project management of any project. Or that some aspects of the design are already defined in the contract or this does not preclude that or has been detailed or otherwise the preparation of the design forms the object of a separate, primary contract. In any case, even if the contract is only for the construction of the favorable facility, the contracted contractor is usually required to prepare a detailed design.
What we generally call technological elements, i.e., patents, know-how, etc can e seen as already being incorporated in to the design with due consideration, as far as finished works are concerned. However, in some cases, the contractor who has under taken the work may use their parties’ technology where necessary either through their own contractual arrangements or as requested by the employer or his engineer.
As part of the contractor’s obligations, what come next are supplies, construction and erection. Even in the more restrictive definition of a turnkey contract undertaken, the construction of the complete facility ready for operation is essentially owned by the contractor. However, it is not uncommon for the employer to retain specific sub contractors from the contractor or to limit the selection to certain supplies. In this way, the employer may wish to assure himself of the quality of certain components or directly negotiate the price of certain subcontractors.
What is turnkey contract in project management?
In general, if we look at the explanation of a turnkey contract, its roots will be in project management. Therefore, anyone can understand that the process of turnkey contract is only one of the various fields of work that come under project management. In other words, a turnkey contract is where the contractor is responsible for the design and construction of a facility for the acquirer. In a turnkey contract, the basic idea is that the contract must deliver works ready for use at an agreed price and on a specified date. In this way, a turnkey contract is carried out in a timely manner under the control of the management that undertakes a meaningful project (for example, the construction of an international stadium)
Some examples of turnkey projects include engineering projects, large construction projects such as air-ports, ports, skyscrapers, bridges, IT (turnkey implementation of information systems) and others.
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