They are built so that they can be sold to a buyer who will not need to make any additional changes.
The term “turnkey” comes from the idea that the buyer has complete control over. How the project will be built and configures, meaning they have full responsibility for everything from design through completion.
Turnkey projects are usually sold to other companies (such as construction firms) who need the product immediately. May also be sold directly by manufacturers or distributors and undergo final testing before being put into production.
Turnkey projects are often used for industrial projects,
where a large number of components must be purchase and installed in sequence to produce an end result.
—for example, a factory building or information technology infrastructure.
They’re more expensive than build-to-order or buy-as-you-go because they require a lot of upfront investment on the part of the buyer.
A turnkey solution is more expensive than buying an incomplete product and then completing it yourself.
Turnkey solutions make products ready for immediate use
Turnkey solutions offer everything you need to get your product off the ground, ready for immediate use.
They include everything from an engineering design and manufacturing solution to a supply chain management solution that helps you manage all of the steps involved in getting your product on shelves or into customers’ hands.
Turnkey solutions are often used by manufacturers who want to streamline their production or distribution processes and minimize risk by taking care of all aspects of manufacturing at once.
The turnkey sourcing process
Industrial turnkey solutions can be daunting, especially when you’re starting from scratch. That’s where turnkey sourcing comes in. In this article, we’ll walk you through the entire process of turning your ideas into reality, using a turnkey project as our example.
What Is a Turnkey Project?
A turnkey project is under a single contract to complete all stages. of a project from detail engineering through construction. The contractor is responsible for all aspects of the project, from procuring materials and labor to completing the finish product. Turnkey sourcing is an ideal option for projects that require a high degree of certainty and control. When you partner with a contractor who specializes in turnkey projects, you can rest assure that every step of the process will be execute according to your exact specifications.
Why turnkey project sourcing is becoming a relevant choice for construction.
When it comes to SHG Green Tech construction, turnkey sourcing is becoming a relevant choice for the modern home builder. In the past, the typical construction process include a large number of different subcontractors working on a project over a period of weeks and months. Although turnkey manufacturing solutions has been around for a long time, it was only recently that it start to become a viable option for the modern home builder.
Today, the construction process can be broken down into three key phases: planning and permitting, design and construction, and post-occupancy. During the planning and permitting phase, the project owner and contractor identify the scope and requirements of the project. In the design and construction phase, the contractor designs and then builds the project, and in the post-occupancy phase, the owner accepts the finish product.
The three-phase construction process allows for the most efficient use of time and resources.
Demand is expanding; supply and profitability is.
The first two phases are relatively straight-forward, but the post-occupancy phase can be the most challenging, especially for small, independent contractors. This is where turnkey sourcing really shines. By using a single contractor, the project owner has the peace of mind that comes with knowing that the project will be complete according to his or her exact specifications. The project owner can also be confident that the contractor has the capability to complete the project within the time frame that was previously identify.
The end result is a project that is complete and well execute, and that is the reason why turnkey sourcing is becoming a relevant option for the modern home builder.
HOW TURNKEY SOURCING CAN HELP YOU: .
- A SINGLE CONTRACTOR WITH ONE OFFER .
When you work with a contractor who specializes in turnkey projects, you are assure of a single contractor who has all the necessary capabilities and resources to take on the entire project.
The principles that create a successful Industrial turnkey projects.
Turnkey projects are in high demand because they offer the following benefits: .
- A single entity is responsible for everything, from the initial ideas through the actual physical construction; .
- All parties involve in the project know exactly what the costs and timelines will be; .
- The risks are share equally among the project owner and the contractor; .
- Construction can be complete in phases so that the project owner and the contractor can both see progress; .
- The contract is execute in writing, allowing the project owner to take legal recourse if the contractor does not uphold its end of the agreement; .
- The owner can choose any contractor he or she feels is best suits to the project; .
- The project owner is not expose to potential liabilities of substandard design or construction.
Fortunately, turnkey projects can be creating in a variety of sizes, from single-family homes to multi-storey buildings.
Find a blueprint for success.
It is important that the project owner and contractor work together to create a blueprint for success. The project owner should clearly communicate the desire outcome and the scope of work to the contractor. Establish a schedule for each phase of the project, from development to construction. Milestones and deliverables at each phase of the project, and set deadlines for the contractor to achieve them.
Establish concrete guidelines for the contractor to follow during the project, including requirements for the project owner to provide the contractor with detail specifications of the project .
HOW TO SELECT A TURNKEY CONTRACTOR.
When considering a turnkey contractor, visit websites that list and recommend contractors. The Better Business Bureau .
How to Establish a Blueprint for Success.
Establish a norm and restore integrity.
A common misconception about turnkey projects is that they are a quick and easy way to get a job done. Unfortunately, this is not the case. Industrial Turnkey projects are no different from any other project. To execute a successful project, there must be a high degree of coordination and trust.
Turnkey projects can be into five distinct phases: .
- Establish your norm and restore integrity.
- Define the scope of work.
- Prepare the site plan.
- The design.
- Prepare the construction budget.
Establish Your Norm and Restore Integrity .
The most important part of any project is the creation of a complete and comprehensive contract. The first step is to set up a formal and detail contract.
Establishing a contract is a necessary step to ensure the integrity of the project.
Turnkey solutions make products ready for immediate use. This is what makes them so popular with customers and businesses alike, who want everything done right in their first attempt. With a turnkey solution, you get a finished product that has all the bells and whistles, so there’s no need to worry about adding on additional features later on down the line when time constraints start getting tight!