Turnkey Projects

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Turnkey Projects Julie Carter BMAL 560 Liberty University Key Term and Why You Are Interested In It Turnkey projects have advantages and disadvantages on business. The project responsibility lies with the contractor or producer of the project and not the buyer. The pressures of decisions and success, do not rest on the shoulders of the buyer. Although, the buyer requiring more control over the designing process of the project, will find difficulties within these types of projects. Turnkey projects are not customized. As per this paper and my academic advancement, I would like to expand my understanding of turnkey projects. Explanation of the Key Term Per Satterlee, “in a turnkey project one client company contracts another…show more content…
188). The article also stressed the importance of having an experienced project management team. The team will be responsible for proceeding with tendering, as well as, the execution of the turnkey contract. Another positive of turnkey contracts, they require less than those involved in more traditional types of contracts. This reasoning is supported by the fact, most of the work is sub-contracted (Merna, 1990), so the large work force is not needed. In conclusion, all five of the articles listed above illustrated, in various avenues, the positives of turnkey projects or turnkey contracts. Turnkey projects are important for organizations to consider when restructuring a process or moving forward into a new industry or process. Although, it is important to state, within this paper the focus mostly relies on the positives, but some negatives do exist. As companies move forward, it is important to understand the risk and the advantages and disadvantages of turnkey projects. References Ahola, T., Laitinen, E., Kujala, J., & Wikstrom, K. (2008). Purchasing strategies and value creation in industrial turnkey projects. International Journal of Project Management, 26, 87-94. doi:10.1016/j.ijproman.2007.08.008 Alsakini, W., Wikstrom, K., & Kiiras, J. (2004). Proactive schedule
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