International construction-turnkey contracts are very similar to management contracts in that ownership of the enterprise is retained by the host organization. In the case of construction-turnkey projects, however, the role of the foreign company is to create the project. After successfully delivering the project to the host enterprise ("turning over the key"), the foreign company may enter into a management contract for a specified time. MNCs' reasons for becoming involved in construction-turnkey contracts are pretty much the same as their reasons for entering into management contracts: availability of expertise, excess talent, underutilized resources such as machinery and other equipment acquired to develop a project somewhere else, desire to get a foot in the target market.
Host countries enter into international construction-turnkey contracts for the same reasons they enter into international management contracts. Large and ambitious projects designed to create the infrastructure necessary both to service their own citizens and to attract foreign investors require resources and technology not readily available within the home base. Projects that might be carried out under construction-turnkey contracts include construction of large highways, ports, schools, hospitals, and resource extraction and processing plants.
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