What is Turnkey Projects?
Generally, Turnkey Projects are ones which are designed, developed, and equipped with all the necessary amenities by a Third Party company under a formal contract. When it is ready to begin operating business, the owner hands it over to a buyer. Companies that contract with others to build complete, ready-to-use facilities are known as Turnkey Project Solutions. The construction and manufacturing of industrial equipment are generally parts of a turn-key operation. Government agencies are common customers for these types of operations.
Industrial equipment manufacturing and construction are typical industries where Turnkey Operations are performed. Government agencies are typically the customers for these types of projects.
Advantages Of Corporate Turnkey Project Services :
Such projects, also known as Turnkey Project Solutions, are mutually beneficial for the company that develops them and the company who ultimately takes over. Some of the foremost benefits of turnkey projects are listed below:
Cost Saving: Whenever a company hires a firm, the firm must be willing to make the project at the cost described in the contract.
Time Saving: As a result, companies do not need to spend time and energy developing an infrastructure, leaving them more time to expand.
Hassle-free and Reduced management efforts: As someone is dedicating time and energy to build the facility, the project owner is free from all sorts of legal and technical challenges, an inbuilt characteristic of the project development, especially in a country like India. Without the need to manage numerous contracts, the project owner can place sole focus on the project itself.
Access to expert knowledge and technical know-how: Turnkey projects offer companies a chance to hire experts. This is because they provide access to expertise and technical know-how. Companies run by people who are not experts in the concerned field may not be able to hire experts.
Collaborative Approach: As a collaborative model, turnkey involves the designer and builder working together with their interests aligned. By eliminating adversarial behavior, the DBB model no longer has the adversarial nature that sometimes exists. When the turnkey solution is chosen, it reduces the likelihood of finger-pointing and blaming that may otherwise occur.
Risk Transference: Contractors are accountable for scheduling, costing, and performing the project, which transfers much of the project risk and responsibility from the project owner.
Consistent Quality: Contractors can establish quality standards early on in the process to ensure consistency across design, fabrication, and construction activities.
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