Turnkey procurement is a method where a client hires a single contractor to design, build and fully equip a project, then hand it over to the client when completed, ready to use. This method is also known as “Design-Build-Operate” or “Design-Build-Finance-Operate” (DBFO).

In turnkey procurement, the client transfers the design and construction risks to the contractor, and the contractor is responsible for delivering a fully operational facility to the client. The contractor is responsible for all aspects of the project, including design, construction, and commissioning, as well as the operation and maintenance of the facility for a specified period.

This method is often used for large, complex projects, such as power plants, hospitals and infrastructure projects. It allows the client to focus on their core business while the contractor takes on the responsibility of delivering a fully operational facility.

One of the main advantages of turnkey procurement is that it allows for a more streamlined process, as the client only deals with one contractor throughout the entire project. It also allows for a more efficient use of resources, as the contractor can coordinate the design and construction process.

However, turnkey procurement can also be more expensive than other procurement methods, as the contractor is taking on more risk and may charge a premium for this. Additionally, the client may have less control over the design and construction process, as the contractor is responsible for these aspects of the project.

As with other procurement methods, the choice of turnkey procurement will depend on the size, complexity, and nature of the project, as well as the client’s specific needs and objectives.