Why are turnkey projects so successful?
Putting new or newly acquired commercial properties (office, retail, facilities, etc.) into operation quickly and easily is the best way for companies to reduce costs. This is why the turnkey model is a success.
What is a turnkey project?
In the turnkey model, the tenant receives a fully functional property with the best design, in a short time. The client should not worry about participating in different stages of a project. The service provider acts as principal and is responsible for providing all of the equipment and services necessary for the project execution such as design works, supplier management, deadline tracking, payments execution and management, setbacks prevention… and delivers to the user a finished, ready-to-use product within the agreed timeline.
"This solution is the most practical and convenient one, especially for small and medium scale projects looking for rapid and not complex project implementation," says Mercedes Balmaceda, Head of Corporate Project and Development Services at JLL Argentina.
Traditional project management approach includes a sequential development, where the construction stage usually begins after the design stage is completed. “This solution gives the client greater control over every stage of the works execution process, selection of suppliers, materials, furniture, etc., which is more suitable for large scale projects," says Diego Pinto Escalier, Head of Project and Development Services for JLL Argentina and Chile. "A turnkey solution allows starting the construction process before the completion of the project stage, meanwhile, saving time. The client buys a combo, and the principal delivers the ready-to-use office space within a considerably shorter project timeline than in the traditional approach,” he explains.
Better experience for the user and for the landlord
In a competitive market, property owners who want to accelerate the placement of their commercial properties offer this differential service to their potential tenants, making their property much more attractive on the market. "The turnkey solution frees clients from bureaucratic complications, long processes and 100% of involvement into the process, improving the whole experience. Besides the budget variables, the user experience is the key one in choosing how to hire and consume," says Paula Cárdenas, Head of Project and Development Services at JLL Colombia and Northern Cone.
"Our experience with the clients is wonderful," says Vicente Moreno, Head of Project and Development Services for JLL Puerto Rico and the Caribbean. Many projects require a non- traditional solution. "Our clients are very satisfied and grateful. Our experience and reputation guarantee them high quality execution of all the stages of the project and less involvement from their side. It's like buying a suit ready to wear, instead of making a tailor-made one," he adds.