Turnkey
From Biocrawler, the free encyclopedia.
A turnkey or a turnkey project is when a seperate entity is responsible for setting up a plant or equipment (e.g. trains/infrastructure) and putting it into operations. It can include contractual actions at least through the system, subsystem, or equipment installation phase and may include follow-on contractual actions, such as testing, training, logistical, and operational support. It is often given to the best bidder in a procurement process.
Turnkey projects can also be extended, known as turnkey plus, where there is perhaps a small equity interest by the supplier and it will later on continue its operation through a management contract or licensing.
Turnkey projects are usually very complex, and involve a mix of technical, financial, political and social factors. It is also special in that there is a definite start/end date and it consists of a bundle that is unique to each client.
Note: Precise definition of the types of allowable contractual features are contained in the Federal Acquisition Regulations (FAR).
