TURNKEY PROJECTS – PROFESSIONAL SERVICES

PRESENTED BY-GROUP-IV

TurnkeyTurn-key refers to something that is ready for

immediate use to describe a home built on the developer's land with the

developer's financing ready for the customer to move in.

"Turnkey" is commonly used in the construction industry, for instance, in which it refers to the bundling of

materials and labor by sub-contractors.

Further used in motorsports to describe a car being sold with drivetrain (engine, transmission, etc.) to contrast with a vehicle sold without one so that other components may be re-used

An examplewould be the creation of a "turnkey hospital"

which would be building a complete medical center with installed high-tech medical equipment.

Turnkey projects

A turnkey project refers to a project in which clients pay contractors to design and construct new facilities and train personnel.

A turnkey project is way for a foreign company to export its process and technology to other countries by building a plant in that country.

Industrial companies that specialize in complex production technologies normally use turnkey projects as an entry strategy.

Project-Consultancy firmA project-consultancy firm is often involved but it

is required to stay independent of the turnkey engineers and be responsible only to the owner - a watchdog so to speak.

The project-consultancy firm has access to all sections of the infrastructure or plant (as applicable) but cannot direct the staff involved.

‘Turnkey plus'Turnkey projects can also be extended,

known as 'turnkey plus', where there is perhaps a small equity interest

by the engineering firm or the main suppliers to ensure allegiance during the initial operational phases.

Once the turnkey phase is over and the engineering firm receives the 'completion certificate', (from the owner), the latter will work independently or with the licensor (if any).

Major advantages of Turnkey projects is the possibility for a company to establish a

plant and earn profits in a foreign country especially in which foreign direct investment opportunities are limited and lack of expertise in a specific area exists.

Disadvantages of a Turnkey project

for a company it include risk of revealing companies secrets to rivals,

takeover of their plant by the host country.

By entering a market with a turnkey project proves that a company has no long-term interest in the country which can become a disadvantage if the country proves to be the main market for the output of the exported process.

A turnkey project could involve the following elements depending on its complexity:

Project administrationlicensing-in of processdesign and engineering servicessubcontractingmanagement controlprocurement and expediting of equipment;materials controlinspection of equipment prior to delivery

Cont…shipment, transportationcontrol of schedule and qualitypre-commissioning and completionperformance-guarantee testinginventorying spare-partstraining of owner's/plantsub-system

operating and maintenance personnelAdvanced Loop Schemes (primary used in the

Electric Utility Industry)

The turnkey-contractor furnishes a wide variety of warranties and guarantees and accepts several liabilities.These include :

(a) warranties for the timeliness of deliveries of equipment, of erection and of completion times of civil and mechanical works;

(b) warranties for workmanship in construction and erection of the works,according to specifications, and warranties guarantees that proper standards will be used

(c) liability for property or equipment under the control of the engineering company who contracts out the agreement to the turnkey-company

Cont..(d) proper safety standards being implemented(e)civil and mechanical engineering

warranties; in the latter case the turnkey-contractor undertakes to assure that mechanical performance will be maintained for a definite period

(f) training warranties of operating personnel in charge of specific operations, and

(g) the very important process warranties and guarantees.

Specific usage The term turnkey is also often used in the

technology industry, most commonly to describe pre-built computer

"packages" in which everything needed to perform a certain type of task (e.g. audio editing) is put together by the supplier and sold as a bundle.

This often includes a computer with pre-installed software, various types of hardware, and accessories. Such packages are commonly called appliances.

And a site with a ready-made solutions and configurations is called Turnkey website.

L&TL&T is globalising its operations, with

increasing focus on international business opportunities.

Over the years, L&T has outgrown its national barriers and extended its activities into the outstretched arms of the Indian Ocean Rim countries.

L&T’s international presence is increasing, with worksites in 20 countries that encompass South Asia, South East Asia, the Middle East, Russia, CIS countries including African countries.

Sudan

Project Management Consultancy for New 2-lane flexible road (Package II - 127km) from Haiya to Atbara in Sudan.

Australia

Supply of 275 kV transmission line towers for Grid Com PTY Ltd., Australia

MaldivesConstruction of Taj Lagoon Resorts

Sudan

Project Management Consultancy for New 2-lane flexible road (Package II - 127km) from Haiya to Atbara in Sudan.