Turnkey procurement
Definition
Turnkey contract is business tender that practice to deliver the project after it is complete to the client. Turnkey method is where the client gives a full responsibility to the developer or contractor handle the project it finishes. The client gives a full responsibility to the developer or contractor handle the project until it complete. In addition, turnkey contract also known as a construction contract in which fixed in price at the time contract is signed. This matter will make the construction company is held in charge for exceeding any of the budget. Turnkey construction contracts also provide an incentive for the company to stay within budget and reduce the risk to the buyer of the construction services and maintenance. If any problems occur during the project, the contractor or developer has to find the solution and solve the problems by their own.
In term of preparation of supporting documents and specification, the function of plant and its capability is more important than to construction or design. Interfaces of plant with other site installations, test the plant’s capabilities procedures, land availability, location and also for the designs were the thing that should be focus more. A company need to significant expertise in CHP and capable of carrying some aspects of the plant design responsibility and will incorporate a detailed list of the plant items needed.
Turnkey contract is normally for build from large scale developments to middle and single structures. Term and qualification for tenderers win the bidding will be evaluates based on their experience on the related project and expertise in designing building. In some cases, it may be appropriate to the tender be present to gi...
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...employers do not have to worry if the project was not finished on time.
Turnkey is an approach that needs the expertise very high. Example of the projects that have been implemented in Malaysia is the Penang Bridge and the Kenyir Dam. This is the main reason why there is among employers who choose to use the turnkey method to ensure the quality of the results. When it involves large capital projects, turnkey approach can be used and very suitable.
Some employers are not attracted to engage seriously in the course of the project due to lack of experience, time and others. With Turnkey approach, employers can decrease the burden and responsibility for the project. The reasons is turnkey method will reduce the employer's involvement in a project. With this turnkey approach an employer can make a decision and just need to give recommendations on the projects to be done.
With a variety of procurement routes to choose from, how can one facilitate the selection of the most appropriate construction contract and avoid situations where the owner insists on using a less appropriate one? How do we begin to focus the conversation on training, and updating efforts to create a reduced number of documents (Construction Canada, 2014)? In the next chapter this dissertation will further analyse the trends and investigate how different procurement routes naturally align themselves in certain asset classes in
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First, traditional path is the tender documents have been prepared and then invite the tender and the employer appoints the contractor to construct the project.
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