Turnkey Contract with Material and Selection of Builder

Turnkey Contract with Material and Selection of Builder

Turnkey Contract with Material and Selection of Builder

Turnkey contract agreement & selection criteria

Welcome to the construction guide blog by Team Overcs, previously we discussed that if a client is planning to build their own house they need to keep the following key factors in their mind while selecting a contractor. We also discussed the key factors that need to be kept in mind while doing a contract with the contractors after their selection has been finalised. While today we will be discussing the key factors on turnkey contract with material  with construction companies or builders. Also we will be discussing the key factors that need to be kept in mind while selecting the company or a builder and what points should be added in the contract.

Now there are two ways in which the house can be built. Firstly if the clients have sufficient time, if they have quality labour and most importantly past experience of building a house, then they should definitely go for the labour contract and save the extra cost. It is recommended that you hire a construction company as a consultant so they can prevent the possible ongoing mistakes to make your dream house construction easy and smooth.

On the other hand if the client does not have sufficient time to be on the site as required, qualified and experienced labour in hand for the smooth and hassle free construction and most importantly if they do not have sufficient experience in constructing a house, then it is highly recommended to make a turnkey contract or with material contract which will definitely be very handy for them. As we have discussed in our previous videos there are two main stages in contracting a house i.e. Grey structure and Finishing. If you are willing to do a turnkey contract or with material contract the stages of constructing a house should remain the same. Grey structure is a very technical wok and should be done in the supervision of a properly equipped construction company or a builder. The good thing about building a house in stages is that the client can  decide on the basis of quality of the grey structure that if they need to get the finishing done from the same company.

There are a few things that need to be kept in mind while selecting a construction company.


First of all the clients need to short list the companies that provide the turnkey contract services and are well experienced in it. This point is very vital as there is a very huge difference in cost between a builder building a house for sale and building it on an agreed terms and conditions on turnkey services for a client.


Secondly it is highly recommended to get quotations from different companies. These quotations must include a detailed bill of material and builders scope of work to avoid any and all kinds of ambiguities and disagreements later in different stages of construction.

turnkey contract sample


After comparing the companies of the same scope, structure, man power and quality of work, the client may finalise the company or a builder. Another very important step to finalise the company is that the client should visit the company’s ongoing projects in order to better understand their quality of material and the way they do their work this will further clear out the companies transparency to the client.


Finally a very detailed, legal and strong agreement should be made between the client and the selected company that includes the comprehensive work detail, quality of material that will be used on the construction site, price range of the products/items that will be used, their brand names, the quality of the work, schedule of the payment and a detailed scope of work that includes all the tasks that needs to be done by the builder or the construction company. Both the parties i.e. the client and the construction company should enter their personal details and the decided points of interest in the agreement.


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About The Author

Zeeshan Ahmad
A Griffith graduate in Marketing and an enthusiastic. Love learning and growing. Have a vast experience in Dairy farming and counselling careers and students. Handling marketing for a construction company established in 2010 and now a well renowned company in the market.


  • Syed on July 12, 2018

    What is the consultancy fees of the contractor who provided the material?

    • Mohsin Munir on July 13, 2018

      Varies between 5 to 10% of the total cost.

  • Vaqar Naqvi on March 26, 2018

    Have a 25 x 40′ Plot in D-12/1 Islamabad Want to construct Kindly advise the construction cost – Can you please share the Legal Contract also ?

    • Epic world Fun on January 20, 2019

      Dear Vaqar sir im a contractor in Islamabad so if you know any thing about it so please contact with me any time

  • zain ul abdien on March 20, 2018

    separate rate mention nhy kia Finishing Premium and premium plus ka . Alag se mention kre jaise grey structure ka mention kia h

    • Mohsin Munir on March 20, 2018

      Dear Zain
      Good suggestion and is noted. Will look into it.

      • zain ul abdien on March 21, 2018

        what is the per sqft rate of a premium grade house finishing work

        • Mohsin Munir on March 21, 2018

          Around 1200 to 1250 Rs/sqft

          • zain ul abdien on March 26, 2018

            BOM k sath mode of payment nhy h website per kindly wo upload kr day.
            kis stage per kiase payment krny h

          • Mohsin Munir on March 26, 2018

            Yes I know that. Will do soon.

  • Umair on March 18, 2018

    Cost of turn key house in islamabad area covered area 3854 including 861 basement

    • Mohsin Munir on March 20, 2018

      Construction method in Islamabad is different as compared to Lahore, In Lahore houses are made as brick structures whereas in Islamabad as frame structures. Hence turnkey rate in Islamabad is different as compared to Lahore and varies in between 1450 to 1500 Rs/sq.ft. For basements rates are same in both cities and around 2000 Rs/sqft of covered area. Some builder’s might quote different rate for basement, their method of calculation will be different, they count all R.C.C walls and roof slab separately. In 2000 Rs/sqft, only roof slab is measured and nothing else. e.g your basement is 861 sqft, total cost of basement on turnkey will be 861 x 2000 = Rs 1722000.

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