Turnkey Contracts
A turnkey contract is often a construction agreement in which a contractor is hired to plan, design, build, and complete any other required work to make a project or infrastructure functional or “ready to use” at a predetermined cost and by a specified date.
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You can dream, create, design, and build the most wonderful place in the world. But it requires people to make the dream a reality.
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Turnkey Contracts
- The design of the facility by the contractor. This does not exclude that certain aspects of the design are already defined in the contract or that the preparation of the design forms the object of a separate, preliminary contract. In any event, even where the contract is only for the construction of the facility, the contractor normally has to prepare the detailed design.
- The technology component, i.e., patents, know-how, etc., in so far as it concerns the completed works, can be seen as incorporated already in the design. However, in certain cases the contractor uses the technology of their parties by virtue either of his own contractual arrangements or as requested by the employer or his engineer.
- The contractor’s duties can include providing supplies and doing construction and erection. The contractor owns the building of the finished, operational facility, even under the more limited meaning of a turnkey contract. Nonetheless, it happens frequently for the employer to demand of the contractor that he keep a particular subcontractor or to restrict the choice to a particular supply. By doing this, the employer may desire to guarantee the quality of specific components or directly negotiate the cost of specific subcontractors.
The Most Important Clauses Of A Turnkey Contract Are:
- Project Inception
The client collaborates with our architect on the project, sharing their wants, objectives, and ideas.
- Design of the facility or project
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- Completion time
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- Price
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- Payment terms & conditions
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- Performance guarantee and
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- Defect liability period etc.
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