| dc.description.abstract | The implementation of the Government Procurement Act on May 27, 1999 has given turnkey its legal basis. There is a trend that the cases for institutions adopt the method of turnkey for engineering projects are increasing year by year. Due to the fact that there are less and less project design and inspection cases in domestic market, and the fact that the charge is relatively low that affects the profit margin, large local engineering consultant firms gradually incline to transform themselves into turnkey firms, with their main advantages of the ability of project planning and surface integration, and of abundant human resources.
Nevertheless, the risk probabilities and impacts that Turnkey firms face are far larger than in the traditional outsourcing projects. That is because the scope of turnkey projects contains the planning and designing phrase in the early stage as well as operation maintenance and management phrase in the late stage, which are not included in the traditional outsourcing projects. To obtain the profit expected, turnkey firms have to cautiously be aware of( 1) finance control, (2) choosing of the best strategic alliance partners, and (3) risk management.
The finance control is the key for the success of turnkey projects, and is also the key for the turnkey firms to success in the operation management. Because of the limitation of relevant domestic regulations, it is unable to form a “large synthetic engineering institute for design and construction”. Therefore, the turnkey firms need to find their strategic alliance partners. Choosing strategic alliance partner would have a great impact to the turnkey firm’s strategy of contracting and operation. Besides, the risk management is critical for a turnkey firm for the high-risk nature of the turnkey projects. Due to the difficulties of collecting the internal information in engineering consultant fields, this research is based on the review of relative literatures, the collection of information, and the empirical experience drawing from participating turnkey projects. The conclusion of this research is: turnkey projects are team works which depend on the full collaboration of the owner, the professional construction management firm, and the contractor to perform the function and to achieve the profit anticipated.
This research also concludes that large engineering consultant firm is more suitable for being the contractor of small projects. Through this research, it is hoped that the institute or contractor plans to do turnkey projects will be able to understand the turnkey projects more, so that they can reach the expected profit and achieve the goal of sustainable development. | en_US |