Which contract type assigns the entire drilling project to a single contractor and pays a fixed fee upon completion?

Which contract type assigns the entire drilling project to a single contractor and pays a fixed fee upon completion?

• A. Footage or metreage contract
• B. Daywork contract
• C. Lump-sum contract
• D. Turnkey contract

Answer: (D)

Turnkey contracts assign the entire drilling project to one contractor who is responsible for everything from design through commissioning, delivering a ready-to-use result to the owner. The owner pays a fixed price for the whole scope, typically at completion or after the project passes acceptance tests. This structure creates a single point of accountability and cost certainty—the contractor bears the risk for delivering the completed, operable project within the agreed price. Other contract types might bill by drilled footage, work performed over time and materials, or fix price for a defined scope without guaranteeing a turnkey handover, so they don’t capture the same end-to-end responsibility and fixed completion payment.

Turnkey contracts assign the entire drilling project to one contractor who is responsible for everything from design through commissioning, delivering a ready-to-use result to the owner. The owner pays a fixed price for the whole scope, typically at completion or after the project passes acceptance tests. This structure creates a single point of accountability and cost certainty—the contractor bears the risk for delivering the completed, operable project within the agreed price. Other contract types might bill by drilled footage, work performed over time and materials, or fix price for a defined scope without guaranteeing a turnkey handover, so they don’t capture the same end-to-end responsibility and fixed completion payment.