Turnkey construction projects have gained significant popularity due to the numerous benefits they offer. A turnkey project involves a single contract between the project owner and the contractor who is responsible for planning, managing, and executing all aspects of the project without requiring third-party vendors.
One of the most significant advantages of a turnkey project is the reduced costs on labor and materials. Since all planning operations and engineering tasks are handled by a single team, it saves time and reduces expenses. However, it is advisable to estimate utility and labor costs before starting the project.
Another benefit of turnkey projects is better timeline management. When outsourcing a construction project to multiple companies, it is challenging to manage different timelines and completion dates, leading to delays. However, with turnkey projects, different stages of the project can overlap since they are executed by the same contractor, ensuring minimal delays and increased chances of timely completion.
Turnkey projects also offer a certain degree of price certainty, which means the overall costs involved in planning and executing the construction project are fixed, leading to an accurate budget and more peace of mind for the project owner.
In contrast, managing multiple contracts from various companies simultaneously in a construction project can be stressful and tiresome for the project owner, leading to potential management problems. Inconsistencies between planners, engineers, managers, and workers can cause delays and additional drawings, which can delay the entire project.