Oregon Construction Contractors (CCB) Practice Test

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What type of construction involves a contractor managing construction and design teams and obtaining financing?

  1. Design/Build

  2. Turnkey

  3. General contracting

  4. Subcontracting

The correct answer is: Turnkey

Turnkey construction is a method in which the contractor assumes a comprehensive role in managing the entire project. This includes coordinating the design and construction teams, overseeing the entire construction process, and handling the financing of the project. The key characteristic of turnkey projects is that the contractor delivers a completed product to the client, often requiring minimal input from them after the initial phases. In this model, clients benefit from a streamlined process, as they have a single point of contact who manages all aspects of the project. This can lead to increased efficiency and reduced risk for the client, as the contractor is responsible for timelines, budgeting, and the quality of both the design and construction work. The other types of construction mentioned—such as design/build, general contracting, and subcontracting—focus either on specific phases of the project or involve multiple layers of management, where the responsibilities are split among different parties rather than centralized with a single contractor. In contrast, the turnkey approach simplifies the process for the client, making it a distinct and effective method for handling construction projects.