A turnkey contract is a business agreement in which a company is given the responsibility of planning and building a product that can generate cash flow for the client upon completion. Cambridge Dictionaries Online uses the example of a stadium being built, while Investopedia describes Subway sandwiches as an example of a turnkey business that requires only capital and labor to begin.Know More
RICS explains that the advantages of turnkey contracts include the possibility of more efficient work produced by a developer and increased time for the client to seek financing and investors. Turnkey contracts are also helpful for inexperienced clients who lack the knowledge to oversee progress. However, RICS also points out that turnkey contracts do not allow clients to have input during design and construction, which sometimes results in a less satisfactory end product. "Turnkey" is also used to describe buildings or the sale of goods and services.
In real estate, Wikipedia explains that turnkey refers to a location ready for occupation. For example, a turnkey hospital is a complete medical center that comes with a full range of pre-installed medical equipment. The term is synonymous with "off the shelf," and as a consequence, products are less customizable, such as in the sale and purchase of a turnkey car that includes the drivetrain.Learn more about Business Resources
A contract is important because it can be used in the legal system to ensure that both parties of an agreement are equally compensated for their work, goods or money. Contracts are legal agreements that may or may not be written.Full Answer >
A rolling contract is a contract that has no defined cancellation date and ends only upon the request of one of the involved parties. Rolling contracts are commonly used in business-to-business and business-to-consumer transactions, such as rental agreements and warranties.Full Answer >
Examples of turnkey projects include houses, factories, storefronts, churches, aviation hangars and chemical production and other facilities. Turnkey projects denote contracted construction endeavors that, when completed, are ready for occupation, use or sale. New housing construction is a prevalent example of a turnkey project because builders normally finish the project before it is sold.Full Answer >
A turnkey project is one that is fully operable when it is handed over to the project manager. A turnkey project can exist within a business setting or can be the actual business.Full Answer >