End-to-end, single source, pre-integrated, multi-utility, single vendor, pre-packaged… however you couch your terms, the key principle behind a turnkey operation remains the same. 

What is a turnkey project?

A turnkey project is a project delivery style in which a single entity, such as the equipment supplier, works with the business/building owner from design through to installation and handover under one overall contract. In other words, we take care of the whole project for you.

The word ‘turnkey’ relates to the customer merely having to ‘turn an ignition key’ to fire up its business activity

We need to stress that we’re not talking here about a contractor-led installation where the contractor has little direct responsibility for the performance of the actual equipment. Rather, that responsible party (i.e. Klima-Therm) runs the whole thing, therefore it is in our interest to supply and install our equipment to the best of our ability – the buck stops with us, providing peace of mind to our customers.

Turnkey HVAC solutions 

In our sector, a turnkey project might  include removing old HVAC equipment such as chillers, connecting pipework, installing electrical works, booking ‘lift & shift’ cranage, conducting building management system works, running builders’ works, fitting acoustic treatment and steelwork, commissioning, and being involved in elements of the design.

What is the turnkey project process?

Clear communication, careful planning, and attention to detail are essential to the success of a turnkey project:

  • Planning phase – We work with the client to understand their needs, requirements and expectations, setting clear goals for what the project should achieve that will guide the entire process. At this stage, a budget is set together with a timeline, including deadlines for various stages. 
  • Execution phase – We assemble a team of skilled people to execute the project, purchase materials and equipment and begin construction. We take care of quality control and communication, keeping all stakeholders and contractors informed as to progress, changes and any issues that arise. 
  • Completion phase – Following completion, we test and review the project to ensure it meets the client’s requirements and handover the completed project, including necessary documentation, training and support. 

What are the benefits of turnkey projects?

A turnkey project can deliver a host of solid business benefits:

  • Single point of delivery – reduces the risk and lowers the cost of a HVAC installation. After all, your project is more likely to be on budget and to schedule if a single entity carries full responsibility for the outcome.
  • Price certainty – because the total project cost can more accurately be calculated than with a piecemeal contract involving several different parties. Plus, there is no hidden and potentially expensive value engineering involved.
  • Cost savings – a turnkey contract will probably be less expensive than a contract with a number of disparate suppliers because the contractual chain is shorter, and jobs happen more quickly.

As a turnkey operator, we could be replacing two, sometimes three, levels of contracting (typically, a principal contractor, an M&E contractor, and a designer). And every time you have another ‘finger in the pie’, as it were, you add to the cost, because each player will add their own markup.

  • Minimise cost overruns – because the company responsible for managing the project is likely to have agreed a fixed lump sum cost during negotiations at the outset of the project.
  • Quality control – quality can be improved with a turnkey contract because the project manager can set quality standards and ensure co-ordination and consistency across the entire team from design through fabrication to installation by the contractor.
  • Reduced project times – shrink project timelines because different stages can be overlapped. So, for example, equipment procurement can occur at the same time as the design is being finalised. As well as accelerating the project, this also reduces the likelihood of delays.
  • Legacy support – beyond the installation itself, there can be a legacy component to a turnkey contract which is able to encompass processes outside the design and installation of a project including elements such as operation and maintenance.
  • Meet the CDM Regulations – turnkey operations can help ease the passage of construction design management rules that must be followed in keeping with the 2015 CDM Regulations (the main legislation for managing the health, safety, and welfare of construction projects).

There is an onus on whoever’s managing the project to ensure that these strict rules concerning client health and safety, welfare, waste disposal, environmental conditions, and so on are followed. Generally, a turnkey project ensures that there is a site presence and management meetings with the client to make this happen.

  • Encourage collaboration – perhaps the greatest advantage of turnkey projects is the collaborative approach they encourage. The fact that the traditional adversarial nature of protects is nullified and the entire team has interests that are aligned in a turnkey project has the effect of preventing the temptation to finger-point.

Turnkey project case studies 

We have operated several contracts on a turnkey basis including the London Stock Exchange, as well as major hospitals, pharmaceutical companies, and data centres and this has enabled us to develop some particularly close working relationships with our customers. In all these cases, we find ourselves dealing with the same people years after initial contact, and they come to know and trust us.

Trusted turnkey project supplier

Our clients know that we remain accountable and must deliver the project to their satisfaction. Indeed, we would argue that the biggest benefit of handing over responsibility for the project to us is peace of mind; it’s far easier for the customer to manage and communicate with a single provider, which means there is only one party to blame if things turn south!

If you are interested in Klima-Therm’s turnkey project solutions, contact us to find out more.