Turn-Key

What is a Turn-Key Builder?

Since you may be speaking with a number of builder's and contractors we felt it important to highlight the difference and advantages of choosing a builder who can offer you a turn-key product and relationship vs. those who specialize in project management. Pricing, services, and personal risks can vary.

Traditionally most builder/client relationships are considered "Turn-key", meaning an agreement of purchase and sale is signed, a deposit is given and remainder of funds are due upon closing, unless otherwise negotiated.

The builder is responsible to build the home as per the specifications and selections made by the consumer, and to deliver the home on a specified closing date. The builder chooses and hires craftsmen and trades people to build your home and ensures they are paid in full for their service and materials. The builder also is responsible for scheduling, monitoring the site for safety, ensuring trades are insured, and obtains required insurance for the property while under construction.

Also, once completed the builder is required to register the home with The Tarion New Home Warranty Program.

Advantages of Turn-key construction?

The biggest advantage to turn-key construction is financial security. Although significant financial savings can sometimes be had when choosing contractors to project manage additional costs and risks arise that can eat into profits. Turn-key construction helps you stay on budget, limits financing needs, and limits liability exposure.

• Budget: The contractor forecasts and commits to the home costing a certain amount, thereby protecting you against unforeseen increases in the costs of materials, labour, theft, unforeseen errors or other sometimes costly issues that can arise with a custom home.

• Financing: Given the bulk of the payment for a turn-key home is not due until closing, you will require limited to no financing during the construction period. Interest payments, appraisal costs and lawyer fees are therefore not incurred.

• Liability: A worksite is a dangerous place to visit and work. Risk of injury to trades people, and other's do exist. Monitoring safety on the site, as well as ensuring trades people are adequately insured is mandatory. If not, you can face hefty fines and judgments from the Ministry of Labour, and open yourself up to Liability exposure should someone get hurt. With a turn-key building relationship if an injury or safety violation occurs, it will be the responsibility of the builder's, not yours.

Building with a project manager is becoming an increasingly popular choice among new home owners, especially in estate communities. However, turn-key construction is still preferred by most of our clientele. We at Shellstar pride ourselves on offering a variety of flexible services to meet each of our client's individual circumstances. So whether you choose to have us build a turn-key home or try our PMP (Project Management Program) we know you will not be disappointed.

Phone: 613-831-9041
info@shellstarhomes.com