IB subject professional services-turn key projects discussed

1. PRESENTED BY-
GROUP-IV

2. Turnkey
 Turn-key refers to something that is ready for immediate
use
 to describe a home built on the developer's land with the
developer's financing ready for the customer to move in.
 "Turnkey" is commonly used in the construction industry,
 for instance, in which it refers to the bundling of materials
and labor by sub-contractors.
 Further used in motorsports to describe a car being sold
with drivetrain (engine, transmission, etc.) to contrast with
a vehicle sold without one so that other components may
be re-used

3. An example
 would be the creation of a "turnkey hospital"
 which would be building a complete medical center with
installed high-tech medical equipment.

4. Turnkey projects
 A turnkey project refers to a project in which clients pay
contractors to design and construct new facilities and train
personnel.
 A turnkey project is way for a foreign company to export its
process and technology to other countries by building a
plant in that country.
 Industrial companies that specialize in complex production
technologies normally use turnkey projects as an entry
strategy.

5. Project-Consultancy firm
 A project-consultancy firm is often involved but it is
required to stay independent of the turnkey engineers and
be responsible only to the owner - a watchdog so to speak.
 The project-consultancy firm has access to all sections of
the infrastructure or plant (as applicable) but cannot direct
the staff involved.

6. ‘Turnkey plus'
 Turnkey projects can also be extended, known as
'turnkey plus',
 where there is perhaps a small equity interest by the
engineering firm or the main suppliers to ensure
allegiance during the initial operational phases.
 Once the turnkey phase is over and the engineering firm
receives the 'completion certificate', (from the owner),
the latter will work independently or with the licensor
(if any).

7. Major advantages of Turnkey
projects
 is the possibility for a company to establish a plant
and earn profits in a foreign country especially in
which foreign direct investment opportunities are
limited and lack of expertise in a specific area exists.

8. Disadvantages of a Turnkey project
 for a company it include
 risk of revealing companies secrets to rivals,
 takeover of their plant by the host country.
 By entering a market with a turnkey project proves that a
company has no long-term interest in the country which
can become a disadvantage if the country proves to be
the main market for the output of the exported process.

9. A turnkey project could involve the following
elements depending on its complexity:
 Project administration
 licensing-in of process
 design and engineering services
 subcontracting
 management control
 procurement and expediting of equipment;
 materials control
 inspection of equipment prior to delivery

10. Cont…
 shipment, transportation
 control of schedule and quality
 pre-commissioning and completion
 performance-guarantee testing
 inventorying spare-parts
 training of owner's/plantsub-system operating and
maintenance personnel
 Advanced Loop Schemes (primary used in the Electric
Utility Industry)

11. The turnkey-contractor furnishes a wide
variety of warranties and guarantees and
accepts several liabilities.
 These include :
 (a) warranties for the timeliness of deliveries of
equipment, of erection and of completion times of civil
and mechanical works;
 (b) warranties for workmanship in construction and
erection of the works,according to specifications, and
warranties guarantees that proper standards will be used
 (c) liability for property or equipment under the control
of the engineering company who contracts out the
agreement to the turnkey-company

12. Cont..
 (d) proper safety standards being implemented
 (e)civil and mechanical engineering warranties; in the
latter case the turnkey-contractor undertakes to assure
that mechanical performance will be maintained for a
definite period
 (f ) training warranties of operating personnel in charge
of specific operations, and
 (g) the very important process warranties and
guarantees.

13. Specific usage
 The term turnkey is also often used in the technology
industry,
 most commonly to describe pre-built computer "packages"
in which everything needed to perform a certain type of
task (e.g. audio editing) is put together by the supplier and
sold as a bundle.
 This often includes a computer with pre-installed software,
various types of hardware, and accessories. Such packages
are commonly called appliances.
 And a site with a ready-made solutions and configurations
is called Turnkey website.

15. L&T
 L&T is globalising its operations, with increasing focus
on international business opportunities.
 Over the years, L&T has outgrown its national barriers
and extended its activities into the outstretched arms
of the Indian Ocean Rim countries.
 L&T’s international presence is increasing, with
worksites in 20 countries that encompass South Asia,
South East Asia, the Middle East, Russia, CIS countries
including African countries.

16. Sudan
 Project Management Consultancy for New 2-lane
flexible road (Package II - 127km) from Haiya to
Atbara in Sudan.

17. Australia
 Supply of 275 kV transmission line towers for Grid
Com PTY Ltd., Australia

18. Maldives
 Construction of Taj Lagoon Resorts

19. Sudan
 Project Management Consultancy for New 2-lane
flexible road (Package II - 127km) from Haiya to
Atbara in Sudan.