The Research Of Turnkey Project Mode Based On Value Chain Theory

Turnkey project means that the construction enterprises contract with the wholeprocess or several stages of the investigaiton, design, purchase, construction,commissioning, checking and acceptance of the project specified in the contract. Asan international accepted means to organize the projects, it helps to regulate theresponsibility subjective and ensure the quality and investment benefits. The projects,which are bidden by using turnkey project mode, make up a significant portion of theinternational construction markets. However, there are not enough enterprises withstrong ability of turnkey project in our country. They are in a poorly competitiveposition in the international top markets of this field. So it is of great significance todeepen the reform and make a big step towards international standard to cultivate aseries of highly competitive enterprises.By introducing value chain theory to build value chain mode in the constructionindustry, this article first analyzes the operational process and management structureof DBB--the traditional project management mode, which are widely used in theproject construction market of our country. Describing the enterprises’ inner valuechain of the main participation party in DBB mode, it related DBB management modeto the concept of value chain partition and pointed out some problems of constructionparty’s value chain partition. To overcome the adverse impacts of these problems, thisarticle introduces the concept of turnkey project, and point out that it is not onlyoptimization and integration of the construction industry value chain, but the moreadvanced project management method to reduce or eliminate the adverse impacts ofDBB. However, it needs enough enterprises existing in the market to put turnkeyproject into effect. The construction enterprises in our country are mainly aboutconsultation, survey and design, construction, subcontract and labor contract. Soconstruction enterprises of a certain scale and strength should be encouraged todevelop and improve the ability of turnkey projectIn terms of evaluating the ability of turnkey project, this paper attempts toestablish evaluation function in order to instruct construction enterprises to improvetheir ability of turnkey project in details. It pointed out that at present the key todeveloping turnkey project for all construction enterprises is to improve value chainintegrative ability in the further analysis of evaluation function. Then, some specificmeasures to enhance the integrative ability of value chain are brought forward, usingthe correlation method of integrated management. Finally, this article analyzes thespecific case of a certain survey and Design Institute and puts forward somesuggestions for this institute to further develop turnkey project.