Turnkey

Turnkey refers to something ready for immediate use, or to the creation of a turnkey project, or to some other business practice. A turnkey business is one that is delivered with everything that is needed for operating the business immediately. A turnkey operation is one that delivers a product or service that can be used immediately by the buyer just by “turning the key.” When the term turnkey is used for something that is ready for immediate use, the reference is to something that is ready almost in a “plug-and-play” fashion.

Types of Turnkey Goods and Services

In the construction industry, a “turnkey” job is one in which materials may be bundled by a supplier for a job that is standardized. A supplier for a turnkey plumbing job in a new house would bundle the parts, such as the toilet, pipes, connections, faucets, tub, shower stall, shower door, and other parts. This practice would allow the plumber to work without reference to a general contractor.

In the motor sports industry, a turnkey car would be one in which a car can be custom-built for a customer, who avoids the costs of locating parts, performing the labor, and doing all other tasks that are needed to restore or to rebuild a custom automobile, especially in the case of rebuilding a classic. A racer in the motor sports industry may also want to drive a race car that has a particular drivetrain or to use parts from a previously raced car. The parts can be incorporation into the turnkey car.

Established businesses are often advertised for sale as a turnkey business. The benefit is that the buyer is given the keys to the business, and then only has to turn the key to the door to be in business. New startup businesses can also be turnkey businesses that are standardized and ready for operations, from the implementation of a complete package of construction and management tools.

A turnkey property in real estate sales is one that is ready for immediate occupation. Luxury vacation homes or vacation rentals are offered as turnkey properties, offering all possible amenities. However, if the property has to go through a turnkey process, then it refers to an open location that must be selected, negotiated for sale or lease, planned, constructed, furnished, and then occupied. For example, a department store or a store of any size, even a big box store, must go through various processes, which include stocking the store before the doors open. However, the project becomes easier, eliminating some of the uniqueness inherent in projects, if it is a turnkey project that has standardized and repetitive features.

Current business practices sometimes refer to projects that are called turnkey projects. These types of projects involve separate organizations being responsible for setting up the parts of a project, and then putting it into operation.

Projects are unique activities that have a beginning, middle, and an end. They are usually very specific sets of jobs that can be small, medium, or enormous in size. Turnkey projects are projects that are viewed systemically as a set of jobs. The various phases of the project are handled by different companies or organizations as sets of jobs, which may be construction, finishing, deliveries, equipment installation, testing, training, or other sets of tasks. The jobs in a turnkey project may be contracted to different organizations. The bidders may offer the best price or performance or other qualities needed to complete that part of the project. Sometimes turnkey projects are extended to become turnkey plus projects.

...