Although it is a concept that we have heard many times, there are still doubts about what a turnkey project is.
A work or turnkey project is related to construction. It refers to a type of contract made between the contractor and the contractor, where the former agrees to be responsible for all or the vast majority of procedures that are needed for the construction of a work.
In this post we tell you what it is, the characteristics and the advantages of a turnkey project.
Characteristics of a turnkey project
Before starting with the characteristics of this type of contract, it should be noted that the main objective of a turnkey project is for the contractor to take care of everything from start to finish.
In this contract, the price is closed and global. Also, the timeframe is fixed as well. On the other hand, the contractor has to take care of the design of the space with the guidelines that the client demands.
The contractor, in addition, has to obtain all the technical documents necessary to execute the project. For example, request municipal licenses. He will also be in charge of the construction, assembly and request of the necessary supplies to carry out the work.
On the other hand, the client has some obligations. The main obligation of a client in a turnkey project is to allow the contractor access to the work or construction site. It is also mandatory that you support the contractor in obtaining permits and licenses, signing the necessary documentation and paying the price of the contracts and fees.
For his part, the contractor has to take care of obtaining the necessary permits and licenses to carry out the entire project. But in addition, he has to correct any damage that may occur in the space intended for the work and meet the completion dates that have been agreed in the turnkey contract, including the repair of said damage.
In short, we can say that a turnkey project has three essential characteristics: a fixed price for the work, the design and construction carried out by the same contractor and the execution of the work in a certain time to which the companies must adjust. Contractors.
Advantages of a turnkey project
So, what advantages does a turnkey project have for you to be interested in carrying it out? These are some of the benefits of carrying out this type of contract.
Lower financial risks
The contracting company that is in charge of the turnkey project has to deduct a greater margin in the agreed budget to correct the problems that appear. As a budget item is already defined for these purposes, contractors specialized in turnkey projects are able to anticipate problems, thanks to their experience. In this way, the financial risks and the probability of increasing the budget are lower.
Greater control of the work
When there are many companies and contractors involved in a work, it is easier for confusion or errors to occur. That is eliminated in the turnkey project. By dealing with a single person or contractor, control over the works is greater, avoiding allocating effort, time and resources to solving errors or coordinating teams.
Closed price
We have already mentioned this feature, however, it is so important that we must consider it a benefit of the turnkey project. Even before starting to design the project, the client already knows the price, which is unique and closed. The turnkey project avoids the annoying extra expenses on a construction site.
Defined deadlines
This feature is also one of the benefits of this type of contract. Knowing the deadlines and phases of the project before starting the work will give you all the necessary information to know at all times how the project is. The construction companies that offer the turnkey project have the necessary experience to provide responsibility to meet the deadlines, there is no room for any change.
With a turnkey project we bet on the guarantee of obtaining a result in an exact time. The result is perfect and according to what customers expect, with the peace of mind of avoiding loss of money.
If you have in mind to carry out a project, work or reform, have you considered doing it in the turnkey project modality? If you need more information, please contact us.
