Research Reports

Recently, use of turnkey delivery has declined owing to an increase in spread of negative perceptions in the Korean public sector. Simultaneously, instances of failures in the bidding of turnkey projects have significantly increased, and owners and contractors have started avoiding such projects. In other countries, however, application of the turnkey delivery method has demonstrated trends, such as reduced project cost, reduced project schedule, improved process efficiency and fewer changes in orders. As such, the future of turnkey method appears bright with a high percentage of owners, architects and contractors expecting to see increased use of this delivery system, as per results of a survey performed in the United States. The proposed study, therefore, aims at investigating the performance of turnkey projects in Korea, and to this end, surveys and case studies were conducted and conclusions were drawn to improve the performance of turnkey projects. As per results of the proposed survey, excellent results concerning improvement in constructability and planning of businesses, application of state-of-the-art technology, and increasing client satisfaction are expected. In particular, use of the turnkey delivery method has been proposed for high-end projects and large complex projects, thereby resulting in a technological competition among companies and improvement in technological prowess of the industry. However, there exists a lack of success concerning integration of design and construction aspects, such as reduced project cost and schedule. In order to facilitate turnkey projects achieve performance at par with other countries, institutional systems and project environment conditions, which limit integration of design and construction aspects, require implementation of significant changes.