What Does Turnkey Mean In Construction?

Over the past few years, you have probably noticed some of the new construction strategies and trends across the country. Some seem to come and go quickly, while others stick around for a little longer. One such trend is called turnkey or pre-designed homes. A lot of companies that sell home renovations and houses will offer completed versions of your house!

What this means is that they take all of the work out of it for you. You no longer have to search for ways to do-up your own space or learn how to remodel an area of the house yourself. They handle everything for you!

With turnkey housing, professionals manage every aspect of the home’s design and structure. This includes choosing the interior and exterior colors, picking durable materials, designing the room layouts, etc. Plus, most turnkey homes are built with quality components so you know what kind of soundproofing, efficiency, and energy conservation measures they contain.

These types of homes are great because they take away much of the stress that typically comes along when doing cosmetic changes to a house. Not only does this save you time, but it also helps preserve the integrity of the property and its value.

Overall, investing in a turnkey home is a smart way to give your family the space they need without having to worry about costs down the line.

Process of a turnkey project

what does turnkey mean in construction

A process or list of steps is often referred to as a “turnkey” project. This term comes from real estate, where it refers to a house that has been prepared for sale. The seller will take care of the lot, home improvements, and even the initial down payment (as long as they are paid back through the sales contract).

With a turnkey condo or townhouse, the same thing happens but instead it is an individual or group who prepares the unit for sale. Sometimes this includes finding new tenants and/or buyers, updating listing photos, staging the space, and paying for renovations and moving expenses.

Most importantly, the seller usually doesn't want anything more than their money back.

Examples of turnkey projects

what does turnkey mean in construction

Many large companies can boast about offering their customers quality services that are beyond what they must do to stay in business. They may offer people service with a smile, but inside they’re really trying to get your money!

By creating products that are ready to use, company representatives leave no room for error or creativity when it comes to providing customer service.

Turnkey homes come fully furnished and decorated so you don’t have to worry about doing that part yourself. This saves time and energy for something more important – building a house!

Some examples of how this benefits you as a homeowner include:

Not having to search through stores looking for furniture pieces or decorations

Having already done the hard work of choosing everything together

Getting some of the money back in return for the purchase of the home by the builder

There is an abundance of online resources where you can find just about anything you need to refresh your home or create new spaces. You can also take advantage of events and promotions at furniture stores, design shops, and even hotel gift cards where you can spend hours exploring their merchandise.

Keep reading to learn more about the differences between buying a pre-built home and constructing your own.

Questions you should ask a potential contractor

what does turnkey mean in construction

As with any business, there are different levels of contractors and service providers out there! Some offer top quality services while others are much better than that.

What makes a good contractor is an excellent question to ask. You want to be sure that what they say about themselves is true and that their promises can be verified under real conditions.

Here are some questions to get familiar with so you know what to look for when hiring professionals for your project.

Does this person have references?

Can you talk to these people directly or do we need to Google them first?

Is this person full time employee at their company or part-time? If it’s part-time, how long will they work during the season? How experienced are they in the field they claim to specialize in?

How does this professional respond to feedback given by other customers?

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These are all important questions to ask before handing over your money and resources.

Ways to pick the right contractor

what does turnkey mean in construction

Finding the right person to do work for you can be tricky, if not impossible at times. With so many professionals offering their services, how does one know which ones are worth your money?

You will need to look into their backgrounds, as well as reviews and testimonials from past clients. Make sure they have enough experience doing what they say they can do – this could mean marketing materials or websites, speaking with previous customers, and looking at portfolios.

Getting a contractor's license

what does turnkey mean in construction

While some contractors are able to do it themselves, most need someone with at least a beginner’s level of knowledge of construction to help them get their license. This person is called a supervising professional (SP).

The SP can be you! If you're already familiar with basic home repairs, you could become an SP for this builder. Or, you could choose to be a supervizing generalist who teaches others about building fundamentals. Either way, being an SP isn't too difficult.

There are only two requirements: You must be licensed as a General Contractor and you must have at least a bachelor's degree or higher. Beyond that, any profession related to architecture, builders, or remodeling may offer certification as an SP.

Many states require no more than a few hours of supervised work before granting licensure, so look into your state's regulations ahead of time.

Getting a building permit

what does turnkey mean in construction

The next step in construction is to get your building permits! This is an important process that most new homeowners skip over. While some contractors are very familiar with getting these permits, not everyone is.

There are many different types of buildings you can construct, so what kind of permit you need depends on which type of structure you want to build. For example, if you wanted to simply add onto your home or remodel an area of your house, then you do NOT need a general contractor’s license. You only need one for work that exceeds $5,000.

However, if you plan to start working on more complex projects such as adding a second story, designing and building a new room, or constructing an outdoor living space, then you will NEED to be licensed.

Know your neighbors

what does turnkey mean in construction

As mentioned before, turnkey homes come with everything you need to start living in this home quickly. This includes all of the items listed under what is considered “furniture” such as sofas, beds, tables, and more.

They may also include things like appliances, cookware, dishes, and other small household items. These are referred to as quick-access goods because they do not require storage or placement outside of the house.

Overall, these components can be organized into three main categories: livingspace furniture, workspace furniture, and portable equipment.

Livingspace furniture comes together easily at first, but can get integrated into the rest of the room decorations down the road. Work space furniture must be used for working, but can be taken apart and stored when it is no longer needed. Portable equipment can be used anywhere!

This article will go over some tips on how to organize each category of furniture effectively.

Check the contractor's insurance

what does turnkey mean in construction

It is very important to make sure that your new home owner can see what kind of coverage they have for their house before you close on it.

Most importantly, check if their homeowner's or renter's insurance policy contains coverage for additional living expenses (also known as ALE). This covers things like replacing broken appliances or furniture, or paying to have repairs made to the walls and floors.

It is also important to verify that their homeowners' or renters' insurance policies contain adequate liability coverage. Liability coverage pays for legal actions brought by someone who was hurt due to poor work done on the property.

By having enough liability insurance, the owners will not be held liable in case something goes wrong with their home.

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