The Turnkey Contract and the Globalization Era

Proceedings of ‏The 8th International Conference on Modern Approach in Humanities

Year: 2020

DOI:

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The Turnkey Contract and the Globalization Era

Maria João Mimoso

ABSTRACT: 

Nowadays, Portugal and the rest of the world have begun to see a gradual and prosperous growth of construction companies. Related to this is the internationalization of companies. The need arises for the parties, contractors and ‘developer’ to know in advance the contractual conditions, namely delivery time, development, location of the project, payment and other conditions associated with the construction. This article intends to underline the importance of Turnkey’s contract, considering it an important contracting modality for the execution of large projects, involving not only engineering, but the effective assembly of a complete production unit. This is a multidisciplinary contract where there is the hiring of a single company, whose responsibility ranges from the completion of the project, to the engineering work, equipment purchase, testing and may even cover the respective operation. For the settlement of this contract, it is necessary to know the activity of FIDIC, International Federation of Consulting Engineers. FIDIC, starting from the observation of thousands of construction contracts around the world related to construction, came to the conclusion that there were contractual conditions that were successively repeated in various contractual types. Thus, it created “general conditions” for all international construction contracts, providing standard models to be adopted by interested parties. However, each contract, apart from the general conditions, lacks particular conditions because of its specificities. Depending on the type of construction contract, these are referred to in books of different colors and are universally accepted as the basis for their elaboration. We will make a foray into the discipline of Turnkey’s contract, seeking to highlight the importance it takes on currently.

Keywords: construction; International Federation of Consulting Engineers; large work; regulation.