What does turnkey cost mean?
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 a turnkey package in construction?
How does the turnkey route work? Put simply, a turnkey house is a finished home that’s ready for you to move into. To achieve this, you’ll work with an integrated team of design and build experts to develop the concept of what you wish to build, deciding precisely how you’d love to live.
How does turnkey construction work?
What is Turnkey Construction? With this type of project, the contractor is given the responsibility for design and construction work. The owner need only wait for the contractor get the job done, and then when the project is finished, he or she is able to “turn the key” and start using the new building or facility.
What is a turnkey delivery?
Turnkey delivery typically means the development and delivery of a facility ready-for-use by the occupants. Removing the worry or hassle from the building owner, a turnkey developer handles the responsibilities that would fall on the owner in traditional Design-Bid-Build (DBB) delivery.
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.
How does a turnkey project work?
A turnkey project is a delivery method in which a single entity—a contractor—works with a project owner under a single contract to complete all stages of a project from detail engineering through construction.
Is a turnkey a fixed price contract?
A fixed-price turnkey home takes the stress out of buying a house and land package. Instead of worrying about buying a parcel of land and then finding a builder, a fixed price house and land packages means that the property developer and builder work together to take care of both steps for you.
What is a turn key house Lot?
A turnkey property is a fully renovated home or apartment building that an investor can purchase and immediately rent out. A turnkey home is often a property purchased from a company that specializes in the restoration of older properties.
What are the disadvantages of turnkey projects?
Disadvantages
- Requires strong scope definition: The scope must be fully established before entering the engineering and design phase of a turnkey project.
- Dependent on trust: The turnkey approach depends heavily on the project owner’s trust in the contractor.