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.
1: SHORTLIST EXPERIENCED COMPANIES
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.
2: DETAILED QUOTATIONS
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
3: VISIT ON GOING PROJECTS
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.
4: DETAILED LEGAL AGREEMENT
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.