What is a Turnkey Building Contract

If you’re in the market to build a new home. You will likely want to explore the option of purchasing a turnkey building contract.

This is a type of home construction agreement that is contracted between you and the builder.

A Totalentreprise (turnkey contracts) is a type of building contract that a client can purchase to have someone else build their building for them.

This is a specific type of construction contract. That is frequently used by buyers to have a certain amount of time to finish their new building.

Some turnkey building contracts will also include the fixtures, furnishings, and equipment that will be needed to finish the building.

Turnkey Contract Construction

A turnkey contract is prepared for being sold to a buyer after having been fully completed.

Contractors are legally bound to complete projects in line with pre-determined instructions and stipulations.

All terms and specifications are fixed in advance. An agreed-upon value is decided upon and a set duration is fixed as well as being duly signed.

Skilled contractors take responsibility for embarking on full completion of the project. With only entrusting the same to the client when it’s fully functional and there’s only one task left-turning his/her keys!

Turnkey Contract Construction


How it works?

A turn-key property has been fully renovated and the investor can purchase the same to immediately rent it out or sell it. In turn-key contracts, a developer is hired for the project.

The designer completes the design with no opinion or suggestions from any buyer. However, if a property is being built to spec, so that it meets one specific client’s needs.

Then it can be discussed early on and without intervention initiated. A builder or contractor is very different from the actual owner of a project because once all details are taken care of and construction is complete.

He/ she transfers responsibility of finishing his/ her portion of responsibility in full trust over to the new owner. Such contracts are commonly used in a single building project or large scale developments.

Keep in mind

Under a full turnkey construction contract it is stipulated that the project design, site construction and completion will take place within a specified time frame.

Prevailing prices will be adhered to and payments made as per the times stipulated in the contract. This ensures that there are no delays or issues associated with these factors.

Also included in this type of contract is an instant warranty provided by the constructor – thus allowing for peace of mind from the moment that work begins at your property.

The contractor has full control over your site and can access each component as well as part of your property as necessary.

But only after obtaining all of the licenses, permits and other administrative duties. Maintenance manuals are also supplied to you for later use.

Ensuring that both you and your builder collaborate throughout this process rather than having any kind of dispute that could cause tensions in otherwise good working relationships.

Keep in mind


FAQ related to what is a turnkey building contract?

What is the meaning of turnkey contract?

Turn-Key_contracts are the vehicles companies use to delegate responsibilities. One such example of a turn-key contract is that of a builder and an owner.

Where the owner contracts for a building online and the builder is not only responsible for building it, but also delivery and operation throughout the life of the building.

The Turn-Key system makes sure that responsibility for all elements required for fulfillment are taken care of by 1 party (the contractor).

So that meant any parties who expected profit from other areas such as advertising or service provision would be left out.

This not only reduces costs, but also ensures quality control in regards to those given responsibility over those aspects.

What are major traits of turnkey type contracts?

The clauses of a turnkey contract will depend on a number of factors. The clauses only apply to certain parties involved in the project and those who have responsibilities.

During the various stages of construction, management and transition stage. Who they are and what their roles are within the project. (whether they’re managing consultants or setting up a prototype, for example).


A turnkey contract is the most common type of construction contract. The term “turnkey” is used to describe a job that is a complete package.

This includes everything from design to building to completion. Turnkey contracts are short term and fixed price. Turnkey contracts usually have a short time frame.

The purpose of a turnkey contract is to save time and money. Turnkey contracts are often used when there is limited time to complete the project.

We hope you enjoyed our article about what is a turnkey building contract. With this knowledge, we know that you can make the most of your building project when using turnkey building contracts like this.

If you want to get more information read other blog post on our website.


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