Construction Law/Hi


Describe the turnkey method,turnkey variation and construction management?

Dear Negasa,
Thank you for your question. The definitions that you asked for has to be seen from the Contract perspective as these are not standard terminologies in a way. What I can make out of these three terms is as follows:
1. Turnkey Method:
This basically refers to the system of turnkey delivery of the Project. That means Contractor is responsible for all operations from A to Z within the quoted price unless some specific items have been excluded and are to be priced separately as per methodology specified in the Contract. This includes design, procurement, execution and then maintenance for the specified period.
2. Turnkey Variation:
This is not very clear but all I can make out is that if the Project require any variation apart from the specified details then in that case Contractor has quoted a lumpsum price for all varied items essentially required to complete the Project. I mean this is for all the work carried out as variation to the Contract but was essentially required as per scope of work given for the varied items and for which one price was to be quoted.
3. Construction Management:
It generally covers all aspects of construction management after completion of the design and includes procurement, construction supervision and to maintain it for a specified time before it is handed over to the owner. These three functions has further components like contract management, which include cost and progress monitoring along with dispute resolution process if needed.
With this I feel that I have given my views quite clearly and should you still have any question please com back with a specific point and background of it.

Liaqat Hayat  

Construction Law

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Liaqat Hayat


I can answer questions based on FIDIC 4 and FIDIC 1999 [design-build] with particular reference to time extension , price adjustment and disputes. I am in particular more inclined for response to points pertaining to how claims should be framed and put up in case of technical or other contractual shortcomings. Regarding procurement matters I have spent over 5 years as procurement specialist for highway authority and dealt with numerous claims and disputes in the capacity of "The Engineer" .

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