Turnkey Construction Contracts in Construction and Infrastructure Projects: An Introductory Overview

Abstract

Turnkey construction contracts have during recent time acquired considerable popularity in the construction, engineering and infrastructure projects sector all across the world. These contracts contain certain singular features in terms of risk allocation, relationship between the employer-party and the contractor-party, pricing mechanisms and several others. In course of this paper, the author would aim to introduce the concept of fixed price turnkey construction contracts, their various features, the purposes for which they are used, the reasons why these contracts may be preferred over their other counterparts in construction and projects, the various drawbacks of using such contracts, the way around some of those drawbacks and some of the standard form model contracts that are in vogue. The author would also consider the validity of the statement of such contracts being the future of the construction industry and the various approaches that the parties might adopt when it comes to execution of such contracts.