Turnkey construction contract

In a rapidly developing world, the construction industry which is necessary for satisfying the growing population?s needs as sheltering, warming, transportation and manufacturing, is also developing. The most important reasons of this developing are, technological renewals, labor displacement and increasing necessities. From now on, rapid, safety and certain steps and also new types of contracts are needed in the construction industry. For this reason, new types of contracts are being implemented by both the government and the individuals to cover the large-scaled construction demands like, especially thermal power plant, barrage, bridge, road, water carrier. One these new types of contract is the turnkey contract which is the subject of our thesis.Turnkey contract is an another practice of construction contracts. In this type of contracts, contractor is responsible for the design, construction and delivery of the plant or the building and employer is responsible to pay a lump-sum price. Turnkey contracts are generally formed when the lenders and employers want to agree with a certain, definite contract price. Mostly, employers agree at a price which is higher than the real value of the construction because, they don?t want to come up against with surprising prices. Thus, contractor is responsible for every risks of the contract, whether the risks exist because of the execution of the contract or the price of the contract. There is a need to fully examine turnkey contracts for the reason that turnkey contracts are high-risk contracts.