What type of contract involves the Contractor designing, building, purchasing land, and financing the project?

What type of contract involves the Contractor designing, building, purchasing land, and financing the project?

• A. Design-Bid-Build
• B. Turn Key
• C. Construction Management
• D. Subcontract Agreement

Answer: (B)

The type of contract that encompasses the contractor's responsibilities for designing, building, purchasing land, and financing the project is known as a Turn Key contract. In a Turn Key agreement, the contractor takes on comprehensive project management, allowing the client to hand over all aspects of the project, from conception to completion, effectively "turning the key" upon delivery of the finished product. This type of contract is particularly advantageous for clients who desire a single point of accountability, as it means they do not have to manage multiple contracts or vendors. The contractor's role is more holistic, covering all phases of the project and reducing the client's involvement during the construction process. In contrast, other contract types are more specialized. For example, a Design-Bid-Build contract separates the design and construction phases, requiring the contractor to bid on plans that someone else has developed. Construction Management contracts involve a contractor who acts primarily as a consultant, overseeing the project without bearing full financial responsibility for the design or construction output. A Subcontract Agreement concerns a secondary contract that delegates specific parts of the work to other contractors but does not encompass the comprehensive responsibilities seen in a Turn Key contract. Thus, the nature of the Turn Key contract clearly aligns with the scenario presented, making it the

The type of contract that encompasses the contractor's responsibilities for designing, building, purchasing land, and financing the project is known as a Turn Key contract. In a Turn Key agreement, the contractor takes on comprehensive project management, allowing the client to hand over all aspects of the project, from conception to completion, effectively "turning the key" upon delivery of the finished product.

This type of contract is particularly advantageous for clients who desire a single point of accountability, as it means they do not have to manage multiple contracts or vendors. The contractor's role is more holistic, covering all phases of the project and reducing the client's involvement during the construction process.

In contrast, other contract types are more specialized. For example, a Design-Bid-Build contract separates the design and construction phases, requiring the contractor to bid on plans that someone else has developed. Construction Management contracts involve a contractor who acts primarily as a consultant, overseeing the project without bearing full financial responsibility for the design or construction output. A Subcontract Agreement concerns a secondary contract that delegates specific parts of the work to other contractors but does not encompass the comprehensive responsibilities seen in a Turn Key contract.

Thus, the nature of the Turn Key contract clearly aligns with the scenario presented, making it the