A turnkey project clause refers to an agreement in which a contractor is responsible for completing a project and delivering it to the client in a ready-to-use condition. This type of arrangement places the onus on the contractor to manage all aspects of the project, from design and procurement to construction and final handover, making it a comprehensive solution for the client.
Manitowoc, WI – January 5, 2021 – Orion Energy Systems, Inc. (NASDAQ: OESX) (Orion Lighting), is a provider of LED lighting systems and turnkey project implementation, including installation and commissioning of fixtures, controls and IoT capabilities, ongoing system maintenance and program management. Orion today announced it entered into a new and expanded five-year $25.0 million revolving credit facility with Bank of America, N.A. effective December 29, 2020. The facility replaces Orion’s prior $20.15 million facility with Western Alliance Bank and provides Orion with increased financing capacity and liquidity to support continued growth and execution of the Company’s strategic plans.
Orion is a provider of LED lighting systems and turnkey project implementation, including installation and commissioning of fixtures, controls and IoT solutions, as well as ongoing system maintenance and program management, helping customers to enhance the efficiency of their business while reducing their carbon footprint. Orion systems utilize patented design elements to deliver industry-leading energy efficiency, enhanced optical and thermal performance and ease of installation, providing long-term financial, environmental, and workspace benefits to a diverse customer base, including nearly 40% of the Fortune 500.
Manitowoc, WI – November 9, 2021 – Orion Energy Systems, Inc. (NASDAQ: OESX) (Orion Lighting), a provider of energy-efficient LED lighting, controls and IoT systems, including turnkey project implementation, program management and system maintenance, today reported results for its fiscal 2022 second quarter (Q2’22). Orion will hold an investor call today at 10:00 a.m. ET – details below.
A typical turnkey project involves the installation and integration of 200-300 rooms in a customer-controlled facility and usually takes sixty days to complete. Since control over goods and services transfers to a customer once a room is installed, the Company recognizes revenue for turnkey solutions over time. The Company uses an outputs measure based on the number of rooms installed to recognize revenues from turnkey solutions.
It comes with hardware software costs because you are taking over the turnkey project from the client, and that becomes an integral part of the project delivery. And as a result, you have to procure some of that and provide the end-to-end services to the client, and that is where you see this cost.
The decrease in loss was driven by the equity investment in HMN, as the joint venture produced a lower loss than in the comparable period, which is generally attributable to the timing of turnkey project work, and a reduction in ownership from 49% to 19% as a result of the partial sale of HC2's investment in the second quarter of 2020.
The change was driven by the equity investment in HMN, as the joint venture produced higher profits than in the comparable period, which is generally attributable to the timing of turnkey project work. This was partially offset by a reduction in HC2's ownership in HMN in the second quarter of 2020 and increases in losses recorded from our investment in MediBeacon due to the timing of clinical trials.
A Turnkey project is a type of project where the contractor is responsible for the entire design, construction, and initial operation, delivering full functionality at completion. The name “turnkey” signifies the idea that upon project completion, the owner can simply “turn the key” to start operations, fully ready and operational. This approach is frequently used in industries such as engineering and construction where complex systems, like industrial plants or large facilities, need to be fully functional upon delivery.
A Turnkey project should be considered when:
Writing a Turnkey project typically involves:
Contracts that typically contain Turnkey projects include:
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Dive deeper into the world of clauses and learn more about these other clauses that are used in real contracts.
An "uncured default" clause typically outlines the consequences when a party fails to rectify a breach of contract within a specified period after receiving notice of the default. This clause ensures that the non-breaching party has the legal right to pursue remedies or terminate the contract if the default is not remedied in a timely manner.
The untenantability clause in a lease agreement addresses the conditions under which a rented property becomes uninhabitable due to damage or destruction, such as from a fire or natural disaster. This clause typically outlines the rights and responsibilities of both the landlord and tenant, including possible rent abatement or the termination of the lease if repairs cannot be made within a reasonable time.
An upfront payment clause requires the buyer to pay a portion or the entirety of the agreed price before the service or product is delivered. This type of clause helps secure the commitment of both parties and often provides the seller with immediate working capital.
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