Turnkey Construction Agreement

The semi-turnkey configuration is a partial EPC configuration (Engineering, Supply and Construction) in which the investor can directly procure specific supplies and work if he feels that it is less expensive and presents a risk that he can control. A turnkey project or turnkey process (also written turnkey) is a type of project designed to be sold to any buyer as a final product. This runs counter to the Build-to-Order in which the designer builds an item to the precise specifications of the buyer or when an incomplete product is sold on the assumption that the buyer would finalize it. Similarly, this term can be used to promote the sale of an established business, including all equipment needed for operation or by a business provider that provides complete packages for business creation. [2] An example would be the creation of a “turnkey hospital” that would create a complete medical centre with medical equipment installed. The price of turnkey projects is usually a lump sum. Although it is possible to express prices in a turnkey contract in the form of unit prices or reimbursement of costs, these agreements appear to be rare. However, it is not uncommon for the turnkey package contract to contain a list of unit prices or prices for certain parts or parts of the plant. These unit and partial prices are then used to assess the spreads and perhaps also to continue to pay. Turnkey contracts are often designed to address in detail any issues that may arise between the parties. The main clauses of a turnkey contract are: project planning, construction site, completion time, price and payments, performance guarantees and contract law. Each turnkey contract contains a detailed description of the general obligations imposed on the purchaser (known as the “employer”) and the contractor.

The term turnkey is also often used in the technology sector, most often to describe prefabricated computer “packages” in which everything is needed for a particular type of task (for example. B audio edition) is compiled and sold in packages by the supplier. [Citation required] It is often a computer with pre-installed software, different types of hardware and accessories. These packages are commonly referred to as appliances. A website with a prefabricated solution and certain configurations is called turnkey website. In principle, the onus is on the contractor to ensure that the project planning is complete, adequate and proportionate and that the facility meets the performance guarantees required by the contract. When construction obligations are considered as construction obligations, the nature of these obligations and whether they were properly executed must be determined regardless of the quality and performance of the facility eventually built. The main features of the EPCM (Engineering, Supply and Construction Management) project are that DSEC works “for and on behalf” of the investor. DSEC`s commitment is therefore a financing obligation that provides clients with fully reliable support throughout the implementation of its project. DSEC is, however, able to assume, under certain conditions, certain debts arising from benefits, budget and schedule, in order to significantly reduce the risk of construction. A turnkey computer system is a complete computer with hardware, operating system and applications specially designed and sold for certain commercial requirements.

This law determines the contractual rights and obligations of the parties, the interpretation of the contract and subject to certain reservations, its birth and validity. The principle of party autonomy, which is recognized for most types of contracts, also applies to turnkey contracts. As a result, the parties are free to choose the right of their contractual obligations, subject to certain restrictions arising from public policy rules.