A turnkey project provides a deliverable to the customer that is fully tested and ready to use upon delivery. This can be a tremendous advantage to the customer, since it eliminates the need for the customer to manage the project. Projects that are time- and resource-intensive can seriously impair a companyÆs ability to continue with normal business while executing the project, since many key people are necessarily engaged in working on the project. Therefore, hiring an outside contractor to handle the project in its entirety preserves the companyÆs time and resources for its business. Since full responsibility for the project rests upon the contractor, the number of interfaces is reduced to the one point of contact instead of a multitude of subcontractors. This gives the customer much greater visibility into the project process as well as leaving the task of coordinating all the subcontractors to the one responsible primary contractor.
Turnkey projects tend to have short project execution times, rapid return on investment, and minimal delays. They have historically been highly regarded, but there are a number of aspects that must be considered when implementing them for optimal success. Since the owner or company commissioning the project turns all responsibilities for design and construction to the outside consultant, the owner must be capable of providing clear performance specifications to the contractor. Furthermore, the owner needs to have full confidence in the contractorÆs ability to carry out the mission. Most turnkey projects are big-ticket undertakings that cost millions or billions of dollars, and unless the contractor is fully capable, those dollars may need to be followed up with millions more to correct deficiencies. The owner has essentially no project control in a turnkey project, so the contractor chosen to take full responsibility for it must be capable, experienced, and determined to address all of th...