Design & Build vs Turnkey Contracts: What’s the Difference?

When it comes to construction, there is a range of contract types. Two of the most common options are Design and Build and Turnkey. If you are looking to enter into a construction project, you must understand the difference between these approaches so you can choose the best option for you and your project.

So what is the main difference between a Design and Build and a Turnkey contract?

The main difference between Design and Build and Turnkey contracts is who handles the project management. In a Design and Build project, the project budget, schedule and timeline are handled by the building owner or an external project manager. However, in a Turnkey project, the construction company handles all of the project management.

Continue reading for a more detailed explanation of what the terms ‘Design and Build’ and ‘Turnkey’ mean and the factors you’ll need to consider when making your choice.

What is a Design & Build Contract?

A ‘Design and Build’ contract is when the main contractor is responsible for undertaking both the design and building work of a construction project. This is different from a traditional procurement contract, in which the client first appoints a design team and then hires a separate construction team. Design and Build contracts are common for a wide range of projects, including commercial buildings, industrial properties, healthcare facilities, retail developments and schools.

There are three main types of Design and Build contracts:

1. Fixed-price. The contractor agrees to complete the project for a fixed price. This is the most commonly used type.
2. Cost-plus. The owner pays the contractor for the actual price of the build plus a fixed fee or percentage of the cost.
3. Guaranteed maximum price. The contractor agrees to complete the project for a cost below a set maximum price. Depending on the contract, the contractor and owner share the risk of price overruns. This is one of the least common Design and Build contracts.

For more in-depth information about the different types of Design and Build contracts and their main benefits, read our blog ‘What Are The Advantages Of Design And Build Contracts?’.

What is a Turnkey Contract?

A ‘Turnkey Project’ is where almost all project stages are handled by the construction company, including the design, build and project management. The project’s cost, schedule and liabilities are the sole responsibility of the construction company. The building owner typically supplies the primary design, and the contractor expands on the initial design and oversees the project to completion.

Turnkey is a great option for owners looking for a hands-off approach to the construction of their buildings. It’s also preferred by many construction companies as this approach gives them complete control over the project.

If you’d like to know more about Turnkey projects, have a look at our blog ‘What Are The Benefits Of Using Turnkey Contractor Services?’.

What’s the Difference Between a Design & Build and a Turnkey Contract?

The main difference between Design and Build and Turnkey contracts is who handles the project management. In a Design and Build project, the project budget, schedule and timeline are handled by the building owner or an external project management team. However, in a Turnkey project, the construction company handles every element of the building project, including the project management.

Turnkey Contracts vs Design & Build Contracts: How to Make Your Decision

Now that you fully understand the difference between a Turnkey and Design and Build Contract, you might wonder how to choose the right contract for your building project.

There are several factors that you need to consider when making your decision:

• Control: Turnkey is best suited to building owners who want their project completed to the highest standard, but don’t want to be involved in everyday management. If you’d prefer to be more hands-on and oversee the project yourself or hire an external project manager, a Design and Build contract will likely suit you better. Whichever option you choose, you’ll need an experienced construction company that you can trust.
• Level of responsibility: In a Turnkey project, the main contractor takes complete responsibility for the project, while in Design and Build, the responsibility can be shared between the building owner and the contractor.
• Time: Turnkey construction projects tend to have a slightly faster timeline because the construction team can work more efficiently and manage their own time and labour allocation. Design and Build projects might take longer as the main contractor has to liaise with the building owner.
• Cost: A Turnkey project can be more expensive than a Design and Build project because the builder takes on more of the risks associated with the project and will factor these risks into the total cost.

With Design and Build construction, the building owner or project manager has more control over the budget and the allocation of funds. However, this might mean the project exceeds the initial budget if the funds are not managed correctly.

Construction Services from Jarvale

With over 50 years of experience in the construction industry, we believe we will make an ideal partner for your next construction project. Jarvale offers both Design and Build and Turnkey contracts, so you can choose the approach that best suits you. We are located in Dronfield, just south of Sheffield, but we undertake projects across Yorkshire, Derbyshire and the Midlands.

As a family-run business, we pride ourselves on our long-term working relationships and industry connections. Our team is committed to delivering the highest quality builds for our clients, on time and on budget.

Build & Design Services from Jarvale

Our bespoke Design and Build service gives you maximum control over your building project. We’ll work with you to design and build a project according to your specifications and within your budget. You’ll still have complete control over the project budget, timeline and schedule, giving you peace of mind.

Find out more about our Design and Build service or give us a call to speak directly to our team.

Turnkey Services from Jarvale

If you’re comfortable with a hands-off approach and want your entire building project overseen by experienced professionals, we offer a complete Turnkey Project Management Service. This gives you all the benefits of our Design and Build service with the added benefit of our skilled project management team. We’ll handle the project budget, timeline and schedule to ensure your building is completed as planned.

Review our full range of services to see how we can help your construction project, or check out our completed projects to see what we’ve accomplished in the past. For any questions or queries, please fill out our contact form below, and we’ll be in touch at your earliest convenience.