Turnkey contract advantages and disadvantages
A turnkey contract was the first sign of its appearance in the twentieth century, and was specifically called upon to build villas and buildings, and there is a covenant between the contractor and the property owner stipulating the construction of the building and the supply of materials for its construction, and then the handover process is carried out between them so that the property is completely ready for living, and is considered This contract is one of the most important contracts that helped in the development and raising of the industrialization movement, which contributed greatly to the technological progress and development in a big way, and this contract has become an essential element that poor countries use to implement development and development plans and for the technological link between them and the developed countries. T is constantly advancing.
Definition of a turnkey contract
It is a construction contract that the state does in order to start implementing large-scale projects that raise the national economy of the country, such as undertaking atomic reactors and the work of military factories and the establishment of international airports and other large and diverse projects, and most likely the contractor needs other contractors other than them who are specialized to implement These projects are huge and complex.
Key delivery contract properties
One of the characteristics of this contract is that the contractor is in the process of designing the project required of it and also the implementation process, and some elements that are specific to this project if they are hidden and the key delivery contract is almost complete, such as paving the land or purchasing or supplying it with electricity and water, and this contract is mostly concerned with building industrial facilities without Performing the construction of ordinary buildings, and the cost of this contract will be in a total amount of its amount, and usually the cost of this contract is huge money and a great risk as it exceeds 50 million dollars, and when the contractor creates the required buildings and works to supply devices and machines and makes sure that these devices work His mission becomes completely finished.
Advantages and disadvantages of the key delivery method
This method has many advantages, among which the cost of the project to be implemented is fairly constant, as it is implemented in the shortest possible time. Among the advantages of this method also is that the owner of this work does not bear any responsibility other than the contractor who bears the responsibility for this project in a large way, and it is a disadvantage This way is that the efficiency of the contracting company is not high, and the method of contract turnkey turnout is large, especially when its inflation rate is high in relation to the desired image related to the construction sector
When is this method used?
This method is used in some cases, including large and complex projects that cannot be designed quickly and in the shortest possible period. The method of handing the key is the only quick method that performs its mission in implementing such projects, and this method is also used when owners want their projects to be implemented quickly and during For a short period, the contractor is the one who works alone to implement and design the project at the same time, and it is advised to use this method when there are huge allocations for the implementation of new construction found in the plan, so the employer works at full speed to distribute these projects and give them to the contractors We specialize in the implementation of these complex projects to start the process of designing and implementing them simultaneously and then hand them over to their owners on time and agreed upon among them, and also used when there are companies with high efficiency and quality that have the ability to develop good and innovative designs and also have the ability to implement in the fastest A possible time to deliver these projects, and the turnkey method is used in the event that there are technical devices whose capacity to work is weak and not efficient for employers.