Turnkey Projects in Housing: Meaning, Examples, & Advantages

The Oxford Dictionary defines “Turnkey” as “anything completed and ready to use immediately.” When applied to a project, the definition will be the same. Turnkey Projects Meaning are those that are ready to buy or rent right away in the housing industry. The contract requires the company to design, develop, and equip turnkey projects with all necessary facilities. When it is ready to manage the business, it is handed over to the buyer.

In this type of project, the owner provides the turnkey project contractor with their budget, requirements, and specifications. The contractor has complete authority to make any decision required for project completion, and the owner is relieved of all project burdens. Most of the good places to live in India are have a multiple of the turnkey projects.

Turnkey projects example

Turnkey Projects in Housing: Meaning, Examples, & Advantages
Trunkey projects examples

Most government projects are in Turkey, link the project developed by some other company, and when it’s ready to operate it will be handed over to the government authorities. Because the government already has a lot of responsibility to handle and they don’t have time and high costs to spend on projects. Many Airports, Bridges, shopping malls, and offices are constructed by turnkey.

A turnkey project is not only on a large scale, but it is also applicable on the small scale. If the owner has a low budget and needs better technique, then this is the best for him. Even the housing project is also handled by the turnkey. In this type of housing project, the buyer starts living directly in the house and all the interior carpet and other designs are already done by the owner. There’s nothing to change and management in turnkey housing.

Not only in the construction field but also in capital projects link logistics, energy, and chemicals turnkey delivery methods used for better service. 

In this mode, the international project, a company may times hire a third party to manufacture and build the project rather than handle everything on their own. In this contract, the third party is responsible for the build-to-supply chain process.

Turnkey project’s advantages and disadvantages

Turnkey projects advantages and disadvantages 
Turnkey projects advantages and disadvantages 

Turnkey contracts are one option for people interested in building manufacturing facilities. This type of contract has several benefits and drawbacks that must be considered in order to make an informed decision about the best way to carry out the construction project.

Advantages of turnkey projects

Advantages mean, how the turnkey will help you to decide “why turnkey is better than another type of project for you” and what happened when you go with it.


Another company is dedicated to building the project holding all the responsibility, and challenges and the main owner is free from all the legal and technical challenges. Owners are not responsible for any issues on site or any emergency; he is just ready to get a turnkey project.

Contact Our Property Expert For Hassle Free Home Buying
Contact Our Property Expert For Hassle Free Home Buying

Reduce management efforts

The turnkey project reduces the challenges of managing and supervising the project owner. This is because the contract between the owner and third party is legally placed upon the firm. Turnkey projects are mostly followed by government projects that have a cost problem.

The term “pucca” is commonly associated with government initiatives in India, where efforts are directed towards converting kutcha houses to pucca houses to improve the quality of life for residents. These housing programs aim to provide durable and affordable housing, especially for those residing in substandard conditions or slums. By replacing kutcha houses with sturdier pucca houses, these initiatives enhance living standards and contribute to better housing conditions for the population.

Reducing cost

One of the biggest and most crucial advantages of the turnkey project is cost-effectiveness. Turnkey projects are also cost-saving because owners are responsible for only a lump sum amount which is agreed on in the contract at the time of negotiation. All the additional costs like the increasing cost of material, inflation, or any other charges are covered by the contractor. 

Reduce timeline

There is no need for the company to waste its time and energy managing and supervising the project. All the responsibility is handled by the contractor as per the contract. The contractors selected for the turnkey project are free of any decisions and actions. They can assign subcontractors and suppliers to help to complete the project sooner.

Get the expert’s knowledge and technique

If the owners are from a different field and don’t have a piece of good knowledge then the turnkey projects are perfect for them. They hired an expert in the concerned field and the contractor will give the result from their best practices and technique and the owner is free from all the challenges.

Disadvantages of turnkey projects

Disadvantages mean if you proceed with the turnkey contract then which problem will you face during the process?

Limitation of client involvement

In a turnkey project, you have a limited ability to make decisions and changes. At the time of selecting the sub-contractors or supply it will deny you to make any selection as per your reference. As per the contract, the client would not have a right to change any previously mentioned things that the contractor will carry out.


The owner’s trust in the contractor is essential to the turnkey project. Sometimes it is critical to select the right contractor who knows the project owner’s vision, budget, needs, and engineering purpose because of having a single point of responsibility. 

Cost may be higher than necessary

The turnkey projects contractor presents the budget as higher than necessary. Because they typically generate a budget before the finalization of the project design. They are considering any predictable changes in cost link material cost, inflation, or any other charges. If the budget increases then The constructor covers all the extra costs as per the contract and they face huge financial losses.

Requisite strong scope definition

A fully defined Scope is a must in turnkey projects before starting the engineering and designing. Any additional components in the project are not allowed because construction, procurement, and all the planning are already done. That’s why any changes during engineering are kept to a minimum.


“Before signing the turnkey contract, it is crucial to understand the nuances of the turnkey process for both parties, considering aspects like freehold vs leasehold property India. Evaluating the advantages and disadvantages of turnkey contracts is essential for both owners and contractors. By addressing potential drawbacks and leveraging the advantages, the turnkey approach can be a valuable process for all involved. Contractors utilize their expertise to profit, while owners benefit from choosing the most suitable contractor, ensuring optimal results for the project. It’s a balancing act that, when managed effectively, leads to successful outcomes for both parties involved in the real estate venture.”

I hope that the advantages and disadvantages of turnkey projects will assist you in making the decision to sign a turnkey contract. If you require assistance with a residential project in India, please contact our experts.

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