Turnkey construction contract

(redirected from Turnkey Construction Contracts)

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 risk inherent in CE's other international investments, power projects in Indonesia and the Philippines, has been mitigated by dollar denominated contracts, partnering with local partnerships, turnkey construction contracts, government supported offtakers and multilateral insurance.
The Big Spring wind power plant uses generally new wind turbine technology, earns revenues based only on electricity generated, depends on an uncertain wind resource, and lacks a single-point responsibility for fixed-price turnkey construction contracts with performance guarantees;