Project Managers and the Use of Turnkey Contracts
A company’s management plays a vital role in the decision-making process of the entire company. The failures and success of the company are dependent on the project managers. There are various steps taken by the company management before the initiation of a project which includes preparation, analysis and estimation reports. The project managers work to get the approval from various departmental boards as well as preparing reports before calling the turnkey contractors. The project managers are also responsible for handling discussions with the contractors to determine their work experience, price negotiations as well as choosing various contractors for specific contractor packages.
Various types of contracts exist in different countries. The contractors have to fully complete various formalities before starting the work. The Total turnkey contract entails that the contractor takes full responsibility for the whole project. These responsibilities range from documents designing, engineering and different testing techniques of the entire project. Supply of different types of equipment, installation, testing and handing over everything also falls under the responsibilities of a contractor under the total turnkey contract.
According to the discrete turnkey contract, erection, commission, and supply of materials, engineering, and design is carried out by a single firm. The project managers or the contractors can hire other contractors to do the construction work. The project managers are fully involved in approving drawings submitted by the contractors.
There is another category of turnkey contract called the non-turnkey contract. This category is also known as rate item contracts. The drawings are prepared and designed by a drawing consultant who is hired by the project managers of the company having a construction project. This type of contractor only works following the basis of the given drawings. The non-turnkey contracts mostly work with the structural and civil contractors.