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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.
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What is advantages and disadvantages of turnkey project?
advantages - it allows countries to share technological know-how, like middle eastern companies do not want USA and other countries to take part in their oil refining and want to profit from it themselves, but do not have the knowledge of the process, the middle east enters into a turnkey project to gain the technological know-how.disadvantages - you are automatically creating a competitor, if your technology is a source of advantage over competitors, allows this information is providing it to the competitor.
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