Definition:
A contractual requirement where the EPC contractor is responsible for delivering a fully operational facility, ready for immediate use upon completion.
Key Components:
- Design & Engineering: The contractor is responsible for the entire design process.
- Procurement & Construction: All materials, labor, and logistics are managed by the contractor.
- Commissioning & Handover: The facility is fully tested and operational upon delivery.
Use Cases/Industries:
- Power Plants: EPC firms build and commission gas-fired or renewable energy plants.
- Chemical Plants: Contractors deliver a fully operational petrochemical processing facility.
- LNG Terminals: Turnkey LNG regasification plants ready for commercial operation.
Advantages:
- Minimizes Owner’s Risk: Transfers project execution responsibility to the contractor.
- Simplifies Project Management: A single point of accountability for all phases.
Challenges:
- Limited Owner Control: The project owner has minimal influence over design changes.
- Higher Initial Costs: Contractors may include risk premiums in their pricing.
Related Terms:
EPC Turnkey Contracts, Lump-Sum Turnkey (LSTK), Full-Scope Execution
Example:
A turnkey EPC contract for a hydrogen production plant ensures that the facility is fully operational upon completion, with all equipment tested and commissioned.
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Synonyms:
End-to-End Project Delivery, Ready-to-Operate Contract, Full-Scope Completion
