What is a turnkey contract?

A turnkey contract refers to an agreement where the contractor is responsible for managing the entire project from start to finish. This means that the contractor handles everything, including design, construction, and any necessary permits, ensuring that the project is completed and ready for use when it is delivered to the client. The key aspect of a turnkey contract is that the owner simply "turns the key" to enter a fully finished facility or project without needing to deal with any of the details during the construction process.

In contrast, contracts for minimal building requirements might not cover the full scope of what a turnkey contract includes, as they may only specify basic standards rather than complete project management. Contracts that only address labor costs do not encompass the comprehensive nature of a turnkey agreement, which includes materials, design, and overall project coordination. Similarly, a contract used specifically for government projects would not accurately describe the broader application of a turnkey contract, as these contracts can be utilized in various sectors, not just for governmental purposes.