Colibri Real Estate 30-Hour Alabama Post License Practice Exam

What term refers to when a contractor provides all materials and labor for a job?

1. Subcontracting

2. Turnkey

3. Fixed-Price Contract

4. Design-Build

The correct answer is: Turnkey

The term that refers to when a contractor provides all materials and labor for a job is "turnkey." In a turnkey project, the contractor is responsible for every aspect of the construction process, from the initial design through to the completion of the project. This means that once the project is turned over to the client, it is ready for immediate use, requiring no additional work or materials. In contrast, subcontracting involves a contractor hiring other specialists to complete portions of the work, rather than taking on the entire project themselves. A fixed-price contract refers to an agreement where the contractor agrees to complete the work for a predetermined price, but it does not necessarily imply that they provide all materials and labor. Design-build is a method where a single entity is responsible for both the design and the construction of a project but does not specifically indicate that they provide all materials and labor without involving subcontractors. Thus, turnkey accurately captures the concept of a contractor managing and supplying everything needed to complete a project.