Turnkey Project – What it is
In today’s post, we are going to solve all the existential doubts you may have about “turnkey” projects, such as what exactly they consist of, the obligations of the parties, the contract, etc…
And we are going to do it in the clearest way possible!
What is a turnkey project?
We know you’ve heard of it, but be honest… you have no idea what it consists of, so let’s clarify it for you…
A turnkey project, or also called turnkey contract, is one that is agreed with a contractor or company, which undertakes to be responsible for all (or most) of the procedures involved in the construction or renovation of a work.
In this type of contract, a comprehensive price is agreed upon and within a previously agreed period of time.
What does all this mean? If you want to avoid headaches and extra worries, this is the contract model for you.
Characteristics of the turnkey project
1. It has a fixed price:
This is one of the most attractive features of this type of contract, as from the very first moment, you will have the final price of the total cost of the refurbishment without worrying about those possible extras that may appear during the execution of the work.
2. Agreed deadlines from the start:
Another of its great advantages!
Before the project starts, the company will propose a series of phases to be carried out, each one of them in a specific and closed time.
This way you will know at all times at what point the renovation is at, being the maximum responsibility of the company.
3. Control by a single person:
Unlike other types of contracts, by transferring control and responsibility to the construction company, you will only deal with the responsible person assigned to the project.
This guarantees you greater peace of mind, as you do not have to talk to and organise the different professionals involved in a refurbishment. This way your renovation will be all you want, but never a worry.
What does my turnkey contract have to include?
There are only 3 fundamental points to include in a turnkey contract, but this may vary depending on the company or the type of work to be carried out.
1. New design and layout of the house:
The contracted company will carry out the layout designs according to the client’s wishes in detail and will carry them out during the work. This project will be defined by both parties before starting the execution.
2. Technological elements:
The company executing the project will provide all the technological elements necessary for the space to be fully operational at the end of the work.
This point is especially designed for companies or workplaces so that, if the refurbishment is carried out in a clinic, at the end of the work the space will be fully operational, including all the equipment that has been previously requested.
In this way we get the best out of our refurbishment.
3. Supply, construction and execution:
There is little to say in this section since only with the heading it is clear what the contracted company is obliged to do.
And it is that, in this case, this company supplies absolutely everything necessary to carry out, constructively, the reform that we want to do, including of course the labour.
So much for the company’s obligations, but now there is your part, which is just as important as the company’s, above all, because if you want to avoid the headaches that any work entails, you should make a few things clear before leaving everything in the hands of your contractor.
Commitment of the contractor in the turnkey project
1. To pay the agreed price on the previously defined dates: WITHOUT EXCEPTION.
If this is not the case, delays may arise in the execution of the project, as you would be in breach of contract… it is better that this never happens.
2. Allow the contracted company access to the site of the work… It is essential that the site where the work is to be carried out is fully available to start the execution on the agreed date, otherwise, again, it would be a breach of contract and may cause delays.
3. Finally, help as far as possible in obtaining permits and licences: Although the construction company will process everything necessary for the execution of the work, they will need you to provide them with certain information in order to obtain these permits, but this will only be at the beginning and once you have obtained them, you just have to wait for them to do everything, everything and everything.
And that’s it!
We hope that we have clarified a little bit what type of contract is right for you and that you can choose the type of reform you want to carry out.
We invite you to visit our website to find work carried out by Mobile Diseño.