Turnkey vs tender

With every decision in life, there are multiple options and sides to consider. It is no different for your commercial building project.

One of the first decisions you will need to make is whether you require a turnkey solution where everything is sorted for you by the provider, or whether you want to be more hands on and manage some of the project yourself by tendering out all or some of the components of the build.

Here we discuss the difference between tender and turnkey, the general pros and cons of both, and how XL Structural Steel can help in both areas.

Before we discuss how the XL team can help you, let’s look at what each option is:

What is tendering?

Tendering is the process by which an organisation who is in need of goods or services invites other parties to submit a proposal and bid to provide the goods/services required.

Pros of Design and Tender

  • Having the project on the market for tender can save you money across the build.
  • The design is not limited to one providers opinion.
  • Can be beneficial if you don’t have a specific contractor that would likely work on your project.
  • Project managing or building some of the components yourself can save time and money.
  • Typically, there are less variations and ‘hidden costs’.

Cons of Design and Tender

  • Can be a lengthy process evaluating all the quotes and conditions from each contender.
  • Consistency in construction can lack with different companies looking after different components.
  • Outside contractors may want changes to the design pushing the build time out.
  • Architects/Engineers can be disconnected from the cost drivers which can result in the building not being designed as efficiently as it could be.

What is Turnkey?

Turnkey is where one contractor provides all aspects of the build. From conception to completion.

Pros of Turnkey

  • Theoretically there is less management work for you, freeing up your time for your business.
  • Reduced project timelines as the project is managed as a whole.

Cons of Turnkey

  • There can be limited involvement in the process on your part.
  • Overall project cost may be higher due to extra layers of project management – and buffers or ‘fat’ in the cost to cover contingencies.
  • Less cost transparency as the proposal is generally presented as ‘one number’ which makes it hard to drill into the main cost drivers – or compare different design options.
  • The ‘turnkey’ may have a lot of exclusions and tags which can result in unplanned extras after the project is consented.

construction procurement methods

No matter the decision, XL are here to help

No matter whether turnkey or tender is better for you project, our team are highly experienced in all aspects of the design and build process and are with you every step of the way throughout your build.

How we deliver

At XL Structural we strive to provide smarter, faster, better buildings. We have refined our processes to make your build the most efficient it can be, no matter what option you choose.

Design and Tender – We work with you to find the best contractors for your job.

Our process for design and tender is broken down into four phases:

Phase one: An overall scope and project investment are outlined, and the budget is set.

Phase two: The XL design team will work through the details of your design including structural, geo and fire engineering to determine a full set of consent plans to be issued to market for tender.

Phase three: The XL team help you to tender out either the project as a whole, or as segments to one or multiple contractors.

Phase four: The successful contractor/s are selected, and the building is constructed.

Throughout the whole process you will have a Project Manager from XL Structural to assist with the project.

Turnkey (Design and Build) – We have a network of contractors that we partner with nationwide.

The process for design and build is broken down into three phases:

Phase one: The overall scope of the project is outlined, and the XL team provide a quote.

Phase two: The XL design team will work through the details of your design including structural, geo and fire engineering and will manage the full consent process with your local council.

Phase three: The project is completed to the specification and scope you require. We can even take care of the landscaping.

Still unsure what is the best option for your build? Take our Turnkey vs. Tender quiz by clicking the button below.

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