A turnkey project is a delivery method in which a single entity—a contractor—works with a project owner under a single contract to complete all stages of a project from detailed design through to construction. Turnkey projects eliminate inconveniences from the project owner, as this method places responsibilities on the contractor that would otherwise fall on the owner in a traditional design-bid-build (DBB) delivery.
By mandating D-VELOPE to handle your next project, you consolidate aspects like project design, budgeting, procurement, subcontracts, and construction into an all-in-one solution with a single point of accountability.
Cost and Timeline Advantages
- Price certainty: Unlike the traditional DBB approach, our all-in-one method reduce financial unknowns and provide project owners the ability to accurately calculate return on investment (ROI), and there is less uncertainty regarding total project cost. With traditional methods, the construction cost is unclear until it has been designed and bid out. If a separate company lacking strong construction experience is hired to design and engineer the project, they might not be able to achieve this within the given budget. This can lead to construction bids coming in at much higher costs than was budgeted for.
- Reduced change management challenges: With the DBB technique, there is no connection between the company that engineers and designs for a project and the company that constructs it. This can result in inconsistencies with the engineering drawings and the project owner’s actual needs, leading to numerous change orders that can continue to cause price increases throughout the project. Errors and omissions are also charged as a change order, leading to increased cost. Poorly designed projects, if not caught until in construction, can lead to significant cost overruns. With turnkey approaches, this challenge is greatly reduced, as everything in the “Issued for Design” package is included in the price.
- Reduced cost overruns: If the turnkey project is bid fixed cost, project owners are only responsible for the lump sum agreed upon during the contract negotiation. Thus, any increase in costs, such as surges in material costs, are already accounted for and are covered by the contractor. If reimbursable, cost overruns are reduced, compared to DBB methods, due to the continuity of the team from engineering to construction. It is also beneficial to have construction team members involved during the design phase because it helps to prevent project delays that could result in cost overruns.
- Condensed project timelines: Multiple stages of a turnkey project may overlap due to the nature of having a single design and construction contractor. This allows for the procurement of materials and subcontractors to occur as designs are being finalized, resulting in a reduced timeline and reduced delays throughout the process.
Additional Advantages
- Collaborative approach: The turnkey method is a model based on a collaborative approach—the designer and builder work as a team, with their interests aligned. This eliminates the adversarial nature that is sometimes present in the DBB model. The turnkey approach reduces the amount of blaming and finger-pointing that may otherwise be involved in DBB project deliveries.
- Risk transference: Much of the project risk and responsibility is transferred to the contractor as opposed to the project owner, as the contractor is in control of, and is held accountable for the schedule, cost, and performance of the project.
- Reduced management efforts: Turnkey projects reduce the need for the project owner to manage and supervise the entirety of the project. Without the need to manage numerous contracts, the project owner can place sole focus on the project itself.
- Consistent quality: From the beginning, a contractor can set quality standards to ensure consistency across design, fabrication, and construction teams.
We are excited for your next project. From our many years’ experience in the interior building industry -and the added knowledge of interior design – we identified a need in the market for a turnkey specialist interior building and design service provider. A one-stop shop for your office, home, or area revamp.