Turn Key Agreement

In the same way, this term can be used to promote the sale of an established business, including all the equipment necessary for operation, or by a business-to-business provider that offers complete packages for business creation. [2] An example would be the creation of a “turnkey” hospital, which would be the construction of a complete medical center with medical equipment installed. Based on the award of the contract, a contractor works on behalf of an oil and gas organization to complete the project from its completion. Other tenders were issued for the purchase of various equipment, electrical works and construction works. The contractor takes care of all the requirements that are met in accordance with the oil and gas organization for which the contractor is working on a turnkey project. This contractor shall carry out all inspections and test procedures in order to ensure the proper functioning of the project. Based on the results and analyses, the contractor orders the project and hands over the project to an oil and gas organization for further development. In real estate, turnkey is defined as a house or property that is ready to move in for him, that is, a fully functional house that does not need modernization or repair (ready to move into). In case of commercial use, a building designed for car repairs would be defined as turnkey if it was fully equipped with all the machines and tools necessary for that particular business. [Citation required] The turnkey process includes all the steps of opening a site, including site selection, negotiations, land use planning, work coordination and complete installation. “Turnkey real estate” also refers to a type of investment. This process includes the purchase, construction or repair (of existing land), leasing to tenants, and then selling the property to a buyer. The buyer buys an investment property that generates a stream of income.

A turnkey, turnkey or turnkey project is a type of project designed to be sold as a finished product to any buyer. This is in contrast to Build to Order, where the designer builds an item to the buyer`s exact specifications or when an incomplete product is sold assuming the buyer would finalize it. Direct and multi-level (MLM) companies like Mary Kay can also be considered turnkey businesses, depending on how little it takes to get them up and running. Often, a person only has to register as a consultant for the relevant department and pay a fee for the inventory needed to perform the work. A turnkey project or contract, as described by Duncan Wallace (1984), is:[1] The term refers to a business buyer who only has to “turn” a “key” to start business. A turnkey contract is a kind of contract or agreement between oil and gas organizations and contractors that stipulates that when the contract is awarded to a given contractor on the basis of the tendering procedure, that contractor must meet all the requirements of the project, order it and hand it over to the oil and gas organization in good condition. The tender file includes the entire project, price details, product details, what is needed, when necessary, penalty, payment plan, etc. by the oil and gas organization to the contractor. Based on the details of the tender procedure, projects can be either a turnkey project, Greenfield projects or Brownfield projects. Outside of franchises, any existing activity already in operation successfully, or a new activity whose doors are ready to open, could be considered a turnkey activity. In these cases, if the company has a proven track record, the risk may be comparable to starting a new business, and it may also offer more control over business decisions than a franchise model. The term turnkey is more or less synonymous with “Design and Build”, “Package Contact” and “Design Contractor”.

This is the most popular type of contract management system in the large construction industry….

No Replies to "Turn Key Agreement"