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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.
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turnkey projects are expensive since the donor will double the interest charge to make more profit on their investment.
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What is the difference in non turnkey and turnkey project?
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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.
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