A turnkey project is a delivery method in which a contractor works with a project owner under a single contract to complete all project stages from detail engineering through construction. Turnkey projects can eliminate inconveniences for the project owner by placing responsibilities on the contractor that would otherwise fall on the owner in a traditional design-bid-build (DBB) delivery.
Unlike the DBB approach, turnkey delivery methods consolidate aspects of project design, financing, procurement, subcontracts, and construction into an all-in-one solution with a single point of accountability. Turnkey delivery methods can be used for a wide range of capital projects in industries such as energy, terminals and logistics, and chemicals.
As for any project delivery method, it is important to weigh the pros and cons before signing a contract. Let’s take a closer look at turnkey project advantages and disadvantages and how they can affect your capital project.