Planning a construction project can become a long and complex process, especially when coordinating different suppliers to secure materials, labor, machinery, and other essential services. This type of management often leads to errors and delays due to a lack of communication or overlapping tasks. To effectively avoid these inconveniences, the turnkey project is emerging, a comprehensive solution that centralizes all aspects of the project under the responsibility of a single construction company.
How does a turnkey project work?
Where does the concept come from?
The term "turnkey" was not originally coined in the construction sector, but in the 1970s, in the context of technology transfers to developing countries. Over time, it was adopted in sectors such as industry and, later, in construction, where it has gained relevance due to its effectiveness and practicality.
What does a turnkey contract include?
While each project may vary depending on the scope and services offered by the construction company, a turnkey project typically includes:
- Obtaining legal licenses and permits.
- Architectural planning and design.
- Complete execution of the work, with constant supervision.
- Supply of materials, machinery and specialized personnel.
- Meeting deadlines and delivering the project as agreed.
Differences from other contract models
Unlike phased contracts or the EPC (Engineering, Procurement, and Construction) model, a turnkey project allows for planning and finalizing every detail from the outset. This ensures greater control over execution and minimizes unforeseen financial risks.
Advantages of the turnkey project
1. Centralized and efficient management
By delegating all responsibility to a single company, coordination is simplified and the margin for error is reduced. You'll have only one point of contact, which facilitates project monitoring and decision-making.
2. Cost control and compliance with deadlines
It eliminates the need for multiple contractors and allows for a fixed budget from the outset. Furthermore, deadlines are defined by contract, providing greater security for the developer.
3. Sole responsibility
The construction company assumes full responsibility for the design, execution, and delivery. In the event of errors or delays, compensation is provided as stipulated in the contract.
Potential drawbacks and risks
1. Less flexibility to make changes
Initial planning is very detailed, so modifying aspects once the project has begun can be complex or costly. It's important to clearly define all aspects before starting.
2. Total dependence on the supplier
Entrusting the entire project to a single company carries a high risk if the contractor is not chosen appropriately. Therefore, it's a good idea to research the company's experience and reputation before signing the contract.
3. Possible hidden clauses or additional costs
It's essential to carefully review the contract and consult with a legal advisor. Some clauses may imply price changes that affect the initially agreed-upon budget.
When is a turnkey project appropriate?
Suitable project types
The turnkey project is ideal for the construction of high-end homes or luxury properties, where precision and customized design are key. It also adapts well to industrial or commercial projects that require agile and comprehensive management.
Ideal customer profile
It is especially recommended for developers who want to project an image of sophistication, exclusivity, and high added value. It is also useful for those who want to avoid complications and enjoy a simplified process.
Key factors for making the decision
- Have a clear idea of the project you want to execute.
- Compare quotes between different companies and contract types.
- Evaluate the advantages and limitations of the turnkey model compared to other options.
- Consider the savings in time and effort compared to traditional contracts.
- Set realistic and concrete goals from the beginning.
At Construcciones Armalutx we are your construction company in Mallorca
At Construcciones Armalutx, we offer our experience in turnkey housing projects in Mallorca . We design, build, and renovate luxury homes with a highly qualified technical team, taking care of every detail to offer you an impeccable result. We take care of everything: from permits to final delivery of the property. Contact us and receive a customized quote for your next project.
