1. TURNKEY PROJECT
KELLY BUITRAGO
ZAIRA NIETO PADILLA
UNIVERSIDAD DE IBAGUE
INTERNATIONAL BUSINESS I

2. A turnkey project refers to a project in which
clients pay contractors to design and construct
new facilities and train personnel.
Example: Industrial companies that specialize in
complex production technologies normally use
turnkey projects as an entry strategy.

3. In projects "turnkey" a contractor agrees to
deliver every detail of the project to a
foreign client, including the training of
operating personnel. Upon completion of
the contract, the foreign client receives the
"key" to a plant ready for its overall
performance.

4. Other services that are always present in
contracts "turnkey", are:
The supply of materials and machinery transport
thereof.
The completion of civil works.
Installation and assembly, and the set-up and
operation of the proposed work.
In certain instances, it is also possible to include
staff training and technical assistance.

5. In the area of international trade as a
consequence of technological advances, which
better reflects the transformations in this sector
is the method "turnkey".
With it disappears the traditional relationship
between customer (contractor), engineer and
contractor, for become replaced by a single
customer-contractor relationship, in which the
latter, with their traditional roles, project design
assumes.

6. STANDINGS
1. When used in the same project:
 Contracts "turnkey" Mixed:
When part of the project is traditional and the other is turnkey.
 Contracts "turnkey" partial:
When hiring traditionally entire project but part outsources turnkey.
 Contracts semi "turnkey“:
When the contractor holds several contracts being
one turnkey contractor responsible latter coordinating other contracts.

7. 2. ​Based on the difference in practice content:
 Contracts "turnkey" single or partial:
 Contracts "turnkey" complete or classic:
 Contracts "turnkey" wide:

8. CHARACTERISTICS
The two essential features of the contracts "turnkey“
a) the merger of the missions of conception
and execution of the work in one person.
b) the overall obligation assumed by the
contractor to the client to deliver a work
fully equipped and in perfect working
order.

9. CONTRACT CHARACTERISTICS
 It involves holding one single contract made
between the client and the contractor.
 The contractor assumes the design and execution
of the work
 Gives the contractor the right to make changes in
their plans, at their own cost and risk.

10. PHASES:
1. Contract preparation: in determining the client's
objectives, the contractor is selected and
negotiated contract terms with him.
2. Execution of the contract that includes the start of
work, the progressive development of the work and
its full implementation, operation and acceptance.

11. In the preparation phase of the contract the
engineer's role is limited to advising the client
as:
a) the preparation of documents for invitation
to tenders.
b) the comparison and selection of offers.
c) in some cases, develop overall project
specifications are given where technical
conditions required by the customer.

12. As contracts "turnkey" detailed description of the work takes place
during the execution of the contract, in such a situation are certain
legal consequences:
Indeterminacy of the object of the contract at the time of
awarding the contract, which is to meet standards through
rights granted to the contractor to modify the project provided
that it is informed, review or approve such changes, and
provided that such amendments do not alter the technical
guarantees and good work.
The contractor shall be responsible for any possible gaps and
omissions that may vitiate the project and the client's rights.

13. ADVANTAGES
The advantages of these
projects is that they are a
great way to earn economic
returns from the asset and
provide the ability to leverage
the skills of technological
processes in countries where
research and development.

14. DISADVANTAGES
 The company is a
contractor will not have a
long-term business in the
foreign country.
 Can create a competitor.
 Competitive advantage is
the technology may also
be the competitive
advantage of current or
potential competitors.