turnkey or turnkey projects (also spelled turn-key ) is a type of project that is constructed so that it can be sold to buyers as a finished product. This is contrasted with a build to order, where the constructor builds an item with the buyer's exact specifications, or when an incomplete product is sold with the assumption that the buyer will complete it. The advantage of Turnkey Projects is that this is a way to gain substantial economic benefits from an asset.
Turnkey projects or contracts as described by Duncan Wallace (1984) are:
.... contracts in which the essential designs are derived from, or supplied by, the Contractor and not the owner, so the legal liability for the design, suitability and performance of the work upon completion shall be made to rest... with contractors.... 'Turnkey' treated only as designation of design responsibility as contractor.
Turnkey computer systems are complete computers including hardware, operating systems and applications designed and sold to meet certain business requirements.
Video Turnkey
General use
Turnkey refers to something ready for immediate use, commonly used in the sale or supply of goods or services. The word is a reference to the fact that the customer, after receiving the product, simply needs to turn the ignition key to make it operate, or that the key just needs to be left to the customer. Turnkey is often used to describe homes built on developer land with financing developers ready for customers to move. If the contractor builds a "turntable" they frame the structure and finish the interior. Everything is done to the closet and the carpet. "Turnkey" is commonly used in the construction industry, for example, which refers to bundling of material and labor by Home Builder or General Contractor to move home without owner involvement. 'Turnkey' is also commonly used in motorsports to describe cars sold with drivetrain (engines, transmissions, etc.) to contrast with vehicles sold without one so that other components can be reused.
Similarly, this term can be used to advertise the sale of an established business, including all the necessary equipment to run it, or by a business-to-business supplier that provides a complete package for starting a business. An example is the creation of a "ready-to-use hospital" that will build a complete medical center with installed medical equipment.
Maps Turnkey
Custom use
The term turnkey is also often used in the technology industry, most commonly for describing pre-built "computer packages" where everything required to perform certain types of tasks (eg audio editing) is united by the supplier and sold as a package. These often include computers with preinstalled software, different types of hardware, and accessories. Such packages are commonly called tools. Websites with ready-made solutions and some configurations are referred to as turnkey websites.
The turnkey product is identical to the "off-the-shelf" solution and is not customized.
In real estate, turnkey is defined as a home or property that is ready for work for the intended purpose, ie, a fully functional House, requiring no improvement or repair (move ready). In commercial use, buildings that are set up to perform automatic repairs will be defined as turnkey if it is fully filled with all the machines and equipment required for a particular trade. The turnkey process includes all the steps involved to open the site including location selection, negotiation, spatial planning, complete construction and installation coordination. Turnkey real estate also refers to the type of investment. This process includes purchasing, construction or rehabilitation (from an existing site), leasing to the lessee, and then selling the property to the buyer. The buyer buys an investment property that generates a revenue stream.
In drilling, this term indicates the arrangement in which the contractor must complete completely up to several milestones to receive payments (in return for greater compensation upon completion).
See also
- Commercial off the shelf
- Engineering, procurement, and construction
- Value-added retailer
References
Source of the article : Wikipedia
0 Comments