Turnkey is a type of project that is constructed so that it can be sold to any buyer as a completed product. So, the price is closed and of course, the planning is known beforehand. For that, the constructor must have a multitask team and well prepared for developing that mission with guaranteed success.
Among the main tasks to develop for the constructor, we have the technical project, asking for local licences, hiring different suppliers, defining the solutions that are needed during the execution, choosing the materials and in some cases, even the interior design, decoration and furnishing. Also, the setup of all the infrastructures.
So, it is essential that the owner is very implicated with the project, because on one hand, he will be free of all the hardest tasks for which he is not accustomed; but on the other hand, he will have to make decisions in a row, with the purpose of getting that the final result fits to his criteria, likes and needs.
Following, I am going to summarise, which are the main characteristics for this kind of projects, to show you a general idea of the service that they include and their development:
- All the process is managed by only one company or professional.
- Gather all the chapters and forms that are necessary until accomplishing the execution, set up and legalization.
- As well as the project, visas, licences, building inspection and other technical works, are included in the agreement.
- The price is closed, unless there are new owner demands not included in the initial budget; because of the risk that the constructor is assuming, he will charge a wider commercial margin.
Finally, it is important to highlight that the success of these projects is very conditioned by the contract that is signed by both parts. In fact, the constructor is taking with his signature all the risk and regarded responsibilities that can happen during the execution, and thus they will be guaranteed by a specific civil responsibility insurance. Also, they should include some penalties in case of breach contract either because of the timing or the rest of agreed conditions.