The contracting of a new build project, typically a villa property where all works are fully managed is known as “turnkey” – whereby you literally do very little until it comes to ‘turn the key’ in the front door.
From the initial design, to signing off on the project, obtaining the building licences, putting the insurances in place and paying the relevant taxes, the project manager and technical architect oversee all site works until such time the ‘first occupation license’ is applied for and the client receives the key.
These “turnkey” projects reduce the amount of time & project management issues providing a better business model for construction based on tighter controls on time, resources and disbursements.
Idea of costs
Turnkey contracts allow better control of costs from the outset once it is established what the final requirements are of the client the promoter can execute with a clear understanding of what is involved to carry out the works.
Speed up processes
When a single company is hired to take charge of all the disciplines necessary to carry out a project, they have a better hold on the overall management it means there are tighter controls over all the trades and the works progress without delays and there is less ‘down time’.
Fewer risks involved
A turnkey development reduces the risk and conflict of having several contractors responsible for the design and the work. A project manager is put in charge from the first stage of the construction, which means the company can deliver on budget without the unforeseen costs that can make the work more expensive while working closely to projected delivery times.
By having all the stage payments handled by the same company time is saved, the processes are executed more quickly which helps accelerate works as disbursements can be made in good time reducing any hold up.
Reduction of conflicts
When the same contractor is responsible for both the design and the build work, the conflict that usually occurs with traditional methods of contracting is avoided.
Any errors that need correcting during construction are made simpler with a dedicated team so the project can progress without any expensive delays or generating costly overruns in construction.
Possibilities for modification
Unlike traditional construction contracts. turnkey projects are brought together with the same small team that overseeing the works so all those overseeing the build are equally aware of the design requirements.
This reduces the contractor’s need to wait long periods to be given answers on any modifications needed on the blueprints while still being able to meet the needs of the client.
This type of contract obliges the main contractor to fulfil and deliver a finished product that meets the detailed terms of the building specifications and overall design of the project.
Savings of resources
A turnkey project decreases the amount of administration and coordination needed while the client only has to deal with a single organisation to handle all the stages of the build process.
With a “turnkey” style building contract a better quality of service is almost certain with a more effective and organised execution. Delivery times can be reduced, as well as the chance of any additional costs for the project.
While there are risks in any type of self-build contract, the “turnkey” option has proven to be a more hassle free and all round enjoyable experience for those looking to build their own home with reduced headaches.