Turnkeykontrakter

Turnkeykontrakter, commonly referred to as turnkey contracts in English, describe procurement arrangements where the contractor is responsible for delivering a completed facility or system ready for immediate use. In Danish and many Scandinavian contexts, the term turnkeykontrakter is used to emphasize the transfer of the project’s responsibility, risks, and ownership from the client to the contractor upon handover. The client provides a project brief and performance criteria, while the contractor handles design, procurement, construction, commissioning, and handover to operation.

A key feature is a single point of responsibility and typically a fixed price and completion date. The contractor assumes design and construction risk, coordinates subcontractors, and delivers a tested, operational facility. The client’s principal risks relate to changes in requirements, site conditions, regulatory approvals, and long-term operating costs. Warranties and performance guarantees may cover installed systems and overall facility performance, with a defects liability period after handover.

The process usually follows a sequence: brief and contract, design development by the contractor, procurement of major equipment, construction, commissioning, and formal handover with manuals and training. Payment is generally milestone-based, often with a final payment on acceptance.

Advantages include a single point of responsibility, potential time and cost certainty, and simpler procurement for the client. Disadvantages include less client design influence, potential for reduced flexibility, and the risk that the contractor prioritizes schedule or cost over quality if incentives are misaligned.

Turnkey contracts are common in construction and industrial projects, but can also apply to large IT systems or infrastructure where a vendor delivers a ready-to-use solution.