What Is a Turnkey Business?

Turnkey engineering is one of the international business methods. A multinational company builds a factory or other engineering project for the host country. Once the design and construction works are completed, including equipment installation, commissioning and initial operations, the "key" of ownership and management of the factory or project is completely "turned over" according to the contract. To the other party, the other party starts business. ^[1]

Turnkey projects

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Turnkey engineering is one of the international business methods. A multinational company builds a factory or other engineering project for the host country. Once the design and construction works are completed, including equipment installation, commissioning and initial operations, the "key" of ownership and management of the factory or project is completely "turned over" according to the contract. To the other party, the other party starts business. ^[1]

Multidisciplinary combination

The so-called multidisciplinary combination mainly refers to the combination of professionals and test bases who master the corresponding disciplines. The first is the combination of professional disciplines in the fields of engineering, materials, and equipment; the second is the organic combination of corresponding disciplines related to the engineering.

Reasonable unit mix

To complete a turnkey project, it is not the same as organizing a large and complete group company, but in accordance with the laws of the market economy

With the change from the previous "design-bidding-construction" contract model to the "design-construction" turnkey contract model, the management methods and models related to "quality" have also changed significantly. Under this contract model, the concept of "quality" has not changed, and it still means "in compliance with requirements." However, the subject of quality audit is the owner, and the contractor is

The "turnkey project" contract includes a number of phased operational steps including engineering design and construction, installation of corresponding facilities and equipment, and commissioning. Once the turnkey project is completed, the ownership and management rights of the plant or project are completely handed over to the project's construction and investment parties, and they begin to enter the formal production and operation phase. Generally speaking, the continued service of turnkey projects after delivery is one of their key contents, and it is also an important way for project contractors to make profits.

Because it belongs to the engineering category, the term "turnkey project" is quite common in greenhouse construction projects. Most greenhouse engineering companies provide users with turnkey engineering services, whether it is government-invested agricultural capital construction projects or private enterprise production base expansions. In order to make the project construction go smoothly, all parties have become accustomed to using turnkey commissioning. Contract this way.

The consulting and design turnkey project contracting services can be extended to the perfect consulting and design level, that is, the user only proposes the intended use of the greenhouse, and the rest is the responsibility of the contractor, including various analysis calculations, climatic condition decision-making, Variety adaptability analysis, environmental condition model, basic form of greenhouse, greenhouse equipment configuration, etc. The contractor makes a decision after making an assessment based on scientific methods and methods. Of course, the construction party is not without participation in the entire project, and many plans will ultimately require the construction party's opinions to be determined.

Because of this, in many greenhouse construction projects abroad, the turnkey project contracting companies are not necessarily greenhouse construction companies, sometimes consulting companies. Such companies have strong resources and high risk control capabilities. Helping users formulate greenhouse construction plans scientifically and reasonably, they can also organize greenhouse construction companies to carry out engineering construction. At the same time, they can also organize other types of horticultural enterprises to participate in the implementation of the same project. This highly professional organization and implementation method guarantees Content, quality science, perfection and safety.

However, due to the fierce competition in China's greenhouse industry, in many cases, the turnkey projects of greenhouse construction projects have virtually no consulting and design content, and are directly converted into engineering contracting, which is equivalent to construction contracting in the field of architectural engineering. Even if there is some engineering construction design, it is only a construction-based deepening design for the established greenhouse construction plan.

The construction of a production-type greenhouse requires the deployment of a large number of horticultural production equipment, a considerable part of which is relatively fixedly assembled on certain structures inside the greenhouse. Commonly, there are seedbeds, fertilizer and irrigation equipment. There are also some equipment located outside the greenhouse, such as heating boilers and their corresponding pipes, and circulating storage tanks for water storage.

When the greenhouse is handed over to the user after the construction is completed, it should be a successful trial operation, and the user can directly put into use the production facilities. From this perspective, the content of the current turnkey project is far from meeting the above requirements. A greenhouse project usually requires 3 to 6 months of self-adjustment and production preparation time after being handed over to the user before formal production operations can begin.

Greenhouse construction, internal supporting equipment, and tools and equipment used for various production operations in the greenhouse affect each other and restrict each other in production. The coordination of the three should be fully considered at the design stage in order to choose a reasonable Suitable equipment products. Otherwise, the second or third construction or procurement will not only cause an increase in procurement costs, but also easily lead to poor equipment matching, which will affect the production efficiency and benefits during operation. The lack of construction content will cause inconvenience to the construction party in later stages.

The lack of construction content is caused by many reasons. The main reason is that users fail to provide accurate requirements, and at the same time, they cannot give sufficient confidence to the solutions proposed by greenhouse companies for planting.

Service commitment Service commitment is actually the most prominent issue. The service commitment of a turnkey project should focus on the promise of functions achieved after the project is put into operation. For the greenhouse, it is the commitment of the greenhouse to regulate the climate, that is, environmental factors such as temperature, humidity, and light. And the service commitment of construction project contracting only includes the quality commitment of engineering, materials and equipment.

Judging from the current industrial foundation and development of the greenhouse industry, under the condition that most companies have a weak design foundation, and there are very few research results on the production of greenhouses by scientific research units, it is necessary to make the above commitments It's really difficult.

After the construction of the follow-up greenhouse turnkey project, there is still a lot of follow-up service work. The first is greenhouse training. Greenhouse equipment is a professional equipment with many special requirements for its use and maintenance. The second is regular professional maintenance. Regular professional maintenance is only for some important equipment, and this type of maintenance should be performed by professional companies such as greenhouse builders. The third is material replacement. Many chemical materials in the greenhouse have a life span of 5 to 10 years, while the life span of a greenhouse can generally reach 20 years or even longer. Therefore, the greenhouse needs to be replaced according to the service life and condition of various materials during the use.

Due to the above-mentioned imperfections, in fact, many turnkey projects in China do not include all of them, which has increased the risk of users to a certain extent, and also increased the risks of greenhouse construction contractors. Whether it is called a turnkey project is not important, what is important is whether it includes enough content, and what should be done but not done will become a major hidden danger in the use and operation of the greenhouse.