Turnkey projects: understand the difference

A turnkey or turnkey project is a project that is sold to the buyer upon completion. Such projects are out of the box and the buyer can have full control over the functionality of the project as soon as it is completed. The term turnkey refers basically to a house that is newly built and ready for immediate use by the client. The turnkey project is a contract-based project under which a company undertakes to fully design, build and equip the business or house and sell the project to the fully functional buyer.

Such contracts and projects provide their clients with ready-to-use, fully developed and tested businesses or homes. This is the factor that is highly appreciated by the client, that when he buys the project it is fully functional and there is no need for any kind of struggle on the part of the client. Since these projects are thorough and comprehensive, they require links and resources that a business sometimes cannot afford. Therefore, companies often hire an external contractor or partner to distribute the workload in order to maintain business integrity and continue normal work while the project is running in parallel. Turnkey projects require contractors and subcontractors for several different things to ensure the functionality of the projects in general. Therefore, a senior consultant or supervisor is generally assigned to maintain and oversee the operation and procedures of the subcontractors.

Turnkey projects tend to be successful at a rapid pace, as the performance of such projects is fast and there are minimal delays on these projects. Once completed, these projects can be sold as ready-to-use projects to clients with high profits. The advantages of this type of project are twofold; one that these projects are good for business and two that clients can get their hands on established and ready-to-go businesses. An example of a turnkey project is the turnkey housing project. In this type of project, companies build houses from framing the structure to finishing the interior. Some of the projects go as far as furnishing and equipping even cabinets and carpets. These types of projects are beneficial for the company as they generate profits and are also good for clients who are furnished and ready to move in.

There are numerous different companies that can run these types of projects often. These companies guarantee large facilities. Often times, turnkey projects, such as turnkey houses, have numerous additional facilities, such as a community with services such as a gym, market and other public services. A company that has a good reputation and a name in the market is the best to opt for and the ideal one to invest in.