What does turnkey contractor mean?
Related to Turnkey Contractor. Turnkey means a procurement process where one service provider assumes total responsibility for all aspects of the project and delivers the full end product / service required by the contract.
What is difference between turnkey and EPC contracting?
EPC is a contract comprising Engineering, Procurement and Construction. Turnkey is a contract comprising Engineering, Procurement and Construction.
Is turn key a legal term?
TURNKEY. A person under the superintendence of a jailor, whose employment is to open and fasten the prison doors and to prevent the prisoners from escaping. 2. It is his duty to use due diligence, and he may be punished for gross neglect or willful misconduct in permitting prisoners to escape.
What is turnkey contract and example?
An agreement under which a builder agrees to complete a facility so that it is ready for use when delivered to the other contracting party. A contractor may agree, for example, to build a fully equipped ad operational factory under the turkey contract.
What is the difference between a turnkey contract and a cost plus contract?
Cost plus contracts are generally reserved for more complex projects, since there are multiple selections and decisions that need to be made throughout the process. Turnkey contracts require an estimate with very detailed specifications prior to starting the job. It provides a fixed amount that sets the budget.
How does a turnkey contract work?
A Turnkey Contract is one under which the contractor is responsible for both the design and construction of a facility. The basic concept is that in a Turnkey Contract the contractor shall provide the works ready for use at the agreed price and by a fixed date.
What does turn key price?
Turnkey cost (sometimes referred to as turnkey pricing) is the total cost that must be covered before a product or service is ready to be sold and used by consumers. A turnkey cost may involve a direct cost, such as materials, or an indirect cost, such as administrative expenses and product engineering.
What is the disadvantage of turnkey?
What is the disadvantage of turnkey? The first disadvantage of the turnkey project is that in case if the project exceeds the budget, the Construction Company has to cover the overages. However, this lessens the burden from the buyer’s shoulders and encourages construction companies to stick to a plan and a schedule.
What are the disadvantages of turnkey projects?
Still, there are some disadvantages with this method: Longer decision making process, although once again this does not necessarily extend project execution. More changes during execution, because the contractor may want to add or change specifications or equipment and materials.
What is the definition of a turnkey contract?
WHAT IS A TURNKEY CONTRACT? A Turnkey Contract is one under which the contractor is responsible for both the design and construction of a facility. The basic concept is that in a Turnkey Contract the contractor shall provide the works ready for use at the agreed price and by a fixed date.
Which is the best definition of a turnkey project?
The general definition for turnkey, according to Investopedia, is a product or service that is designed, supplied, built, or installed fully complete and ready to operate; the contractor or provider undertakes the entire responsibility from design through completion and commissioning.
Why do you need a turnkey manufacturing service?
In the highly globalized and competitive market of manufacturing, there is a constant need to improve performance and provide on-time delivery so that the company’s development is ensured. Turnkey manufacturing services are the smart choice for your next equipment procurement project.
How is the equilibrium of a turnkey contract determined?
It is determined independently. In some cases it can be the law of a country different from that whose law governs the contract itself. In conclusion, a model of Turnkey Contract should be based on an equilibrium of the rights and obligations between the employer and the contractor, and a balance risk allocations.