What Is Turnkey General Contracting?
A turnkey contract is a term that describes a business arrangement where the builder or developer finishes construction of a project before turning it over to the owner. Turnkey contracts are common in the real estate industry. In this context, a home or property that is fully functional, needs no upgrades and is “move-in ready” would be considered a turnkey property.
What Is A Turnkey Contract?
A turnkey contract is a type of construction contract in which the contractor hires professional people to do the work from design to completion. This is typically used by building owners to avoid the headache of managing multiple contractors and subcontractors on a project. A company that specializes in turnkey construction is highly organized and has experience managing large projects. They know what safety precautions to take, how to keep everything on time, and can bring your vision to life without any issues. In this way, the service provider is able to deliver a project on time and in accordance with the client’s specifications, which reduces the amount of stress and hassle for the contractor. The contract also ensures that any defects are remedied in accordance with the client’s requirements.
The Design Phase
During the design phase of a turnkey contract, the contractor will collaborate with you to plan a strategy that will help you achieve your project goals. This includes keeping costs low, driving productivity, and achieving your functional requirements and style preferences. Typically, this phase of a turnkey contract involves the coordination of design, construction, engineering commissioning, and startup services. This process allows for a more efficient implementation of the project, and delivers a high-quality outcome. In addition, it also allows for a more cost-effective total solution. This is especially true for projects that require extensive optimization.
The Construction Phase
In many cases, this phase involves coordination between a property owner and the construction company’s managers. They work together to decide on the desired project, make a safety plan and order materials. The construction phase of a turnkey project can be quite lengthy and complex, so it’s important to choose a reputable company that has experience in this area. By doing so, you’ll be able to rest easy knowing that the construction will be completed on time and within budget.
The Final Phase
The final phase of a turnkey contract involves the actual construction of the building. In this phase, the contractor will procure supplies like lumber through their own network of suppliers, eliminate the need for architects and other designers and carry out the project from start to finish. This is a big advantage to property owners who do not want to be involved in the design and construction of the building. It also allows them to get the project finished in time and produce cash flow. In addition, the contractor will act as a project manager. This means they will work with architects, surveyors, landscape architects, subcontractors and planning departments to ensure the project is completed on time and within budget. However, while it can be a great way to save money, it can also lead to large amounts of time spent on the project. This is why it is important to choose a turnkey general contractor carefully.