Turnkey construction contract

(redirected from Turn-Key Construction Contract)

Turnkey construction contract

A type of construction contract under which the construction firm is obligated to complete a project according to prespecified criteria for a price that is fixed at the time the contract is signed.

Turnkey Construction Contract

A construction contract in which the price is fixed at the time the contract is signed. As a result, the construction company is held responsible for exceeding the budget. Turnkey construction contracts reduce the risk to the buyer of the construction services and provide an incentive for the company to stay within budget.
References in periodicals archive ?
The appointment of Unique Construction Company for The Links comes after a competitive tender process and subsequent negotiation for the turn-key construction contract.
purchased the ownership of the project in February 1999 and commenced construction under a turn-key construction contract with GE.
Transener has taken several steps to reduce the risks associated with project construction and completion, including obtaining turn-key construction contracts from reputable contractors; the contractors also indemnify Transener for any penalties that Transener may be assessed for late completion of the facilities.