Turnkey Construction Agreement

Turnkey Construction Agreement

A Turnkey Construction Agreement is a type of contract in which a construction company or contractor agrees to deliver a complete and fully operational project to the client. The term "turnkey" implies that the client can simply "turn the key" and begin using the facility or structure upon completion, as all aspects of construction, design, and furnishing are handled by the contractor.

In a Turnkey Construction Agreement, the contractor is responsible for all phases of the construction process. This includes design, financing, construction, and sometimes even the procurement of permits and inspections. The client typically provides the initial specifications, and the contractor manages the project from inception to completion, ensuring that it meets the agreed-upon standards and timelines.

This type of agreement is particularly beneficial for clients who prefer a single point of contact and minimal involvement in the day-to-day management of the project. It can also help streamline the construction process and reduce the risk of miscommunication between different parties involved in the project.

For example, a company looking to build a new office complex might enter into a Turnkey Construction Agreement with a contractor. The contractor would handle the entire project, from architectural design to construction and finishing work, allowing the company to focus on its core operations without getting bogged down in construction details.