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In turn key contract, the contractor is entrusted to design, construct, commission & handover the project to the employer. The employer will make the lump-sum payment to the contractor at the different stages of work as per the agreement. This type of contract is useful when the work has to be completed at a very short period. The whole risk is borne by the contractor.
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What is the difference in non turnkey and turnkey project?
Non-turnkey and turnkey projects are the opposite of each other. Turnkey projects are those that contract a firm to fully design, construct and equip a project and then turn it over to the purchaser.
What is the difference between lump sum contract and turnkey contract?
A lump sum contract is an agreement to make a one time payment for goods and services as specified by the purchaser in the agreement. A turnkey contract is an agreement to deliver a completed ready to use service or project without any specifications made by the purchaser.
How does a Turnkey contract differ from EPC contract?
TURNKEY CONTRACT A TURNKEY project is an EPC Contract with total responsibility of Engineering, Procurement and Construction on the EPC Contractor. Owner/Client simply provides the contract specification for the project to be completed within budgeted time limits and quality requirements. EPC contractor is the sole power over the project within project specifications. EPC ~ LOOSE TURNKEY CONTRACT An EPC contract is a LOOSE TURNKEY project wherein owner/client must share some of the technical/engineering/EPC part with the contractor. Both owner and client share responsibility for project completion though majority responsibility lies with the EPC contractor. Here, owner/client wants to have some direct control over quality/timeline/budgeted resources over EPC contractor.
What is EPC or Turnky Contract?
Both EPC and turnkey engineering, procurement, and construction contracts. The difference is that In turnkey, thee contractor is responsible in performing construction and commissioning, but in EPC, construction and commissioning is the responsibility of a third person.
What is the difference between EPC and turnkey contract?
EPC is a contract comprising Engineering, Procurement and Construction. Turnkey is a contract comprising Engineering, Procurement and Construction. If you look at the definition , you may find no difference between two concepts, but there are some differences between two concept as follows; 1- In EPC, an employer will provide basic engineering to a contractor and the latter shall perform detailed design based of received basic design. 2- In Turnkey , Employer will only provide certain technical specifications of the project and it is the responsibility of the contractor to prepare basic and detail design of the project. 3- In turnkey, contractor is responsible to perform construction and commissioning, start-up and take over of the plant to employer, but in EPC, it may be the responsibility of other third person to do commissioning and start-up.
What are turnkey projects in telecoms?
In telecom,the process of installing a new cell site is a turnkey project.
What is opposite for turnkey?
bespoke
What are the advantages and disadvantages of a turnkey contract?
A turnkey contract is one in which an independent agent agrees to furnish materials and labor to finish a project and then turn it over to the owner for a fixed price. Advantages for the business owner: No outlay of cash until the project is done. Advantages for the one making the project: Gets a lump sum payment when the project is turned over to the owner. Disadvantages for the owner: Trusting someone else to deliver a quality project. Disadvantages for the maker of the project: Outlay of cash for materials at the start.
What are turnkey internet businesses?
The Turnkey internet business is a business that you can buy and start immediately. However, it is important to watch out for scams when purchasing these turnkey businesses.
What is a turnkey engine?
Also known as a "crate engine" a turnkey is a complete replacement. The engine is taken out of the shipping crate assembled and ready to be installed.
Advantages and disadvantages of turnkey contracting?
turnkey projects are expensive since the donor will double the interest charge to make more profit on their investment.
Is a turnkey home a modular home?
Turnkey refers to a property that is move in ready; meaning that nothing has to be done to the property in order to start living in it.
