Why turnkey contracts minimise client risk in medical centre fit-outs



Factors that influence the fit-out process
While there are many reasons to fit-out a medical practice, the business drivers are typically
the same – to create a functional and efficient workspace that maximises the patient
experience.

Owners and operators of medical practices know that the traditional concepts of loyalty and
customer retention no longer apply to the modern consumer. The medical practice is no
different and design choices play a dominant role in influencing patient satisfaction which in
turn drive key practice metrics such as new patient sign-up, referrals and patient retention.

Medical practice fit-out is complex. A sophisticated design ‘wrap’ that enhances the patient
experience also has to accommodate a bewildering array of building code, regulatory,
accreditation and compliance requirements such as car parking, disabled access, infection
control, privacy and sound control, electrical fit-out, plumbing and network security
infrastructure. The list goes on and on…

Benefits of turnkey contracts
When owners and operators of medical practices contemplate fit-out, they need to minimise
project risk and maximise certainty of outcome. They need to be confident that their business
goals will be achieved in terms of staff effectiveness, workflow and patient experience, and
they want certainty around project costs, project timelines and regulatory and compliance
sign-off.

Given the range and complexity of issues, a sensible option for owners and operators of
medical practices is a turnkey contract. Turnkey refers to a product that is sold as completed;
the contractor is responsible to the client for the entire result of the project and presents it to
the client completely finished and ready to use. It means the burden of completion—the legal
responsibility for the design and construction—is on the contractor, not the buyer.

For many medical practitioners, medical centre construction or fit-out is something they do
rarely, if at all, during their career. It is wise to engage experienced fit-out specialists to
complete the task, and a turnkey contract is a sensible option to consider as it affords the
client several advantages:

Clear Coordination
The turnkey model is specifically set up to put all of the fit-out components required in the
hands of experienced professionals with an end-to-end understanding of the relevant design,
code, regulatory and compliance issues. This avoids the glitches that have a way of grinding
projects to a halt.

Improved Communication
Within the turnkey framework, the client deals with a single party only and avoids the
potential for confusion and delays from communicating with multiple parties.
Alignment of interests
Client and the contractor have same priorities and are focused on the same outcomes.

Increased certainty on timelines
A turnkey contract is particularly suited to short duration projects where the client requires a
quick completion. The contractor can start procuring materials and sub-contractors as the
designs are being finalised, and clearly defined project timelines maximises the efficient use
of contractor resources.

Reduced management overhead
Turnkey contracts reduce the burden of managing or supervising projects for building owners.
This is because the contract places the responsibility for the entire project upon the
contractor who was awarded the contract.

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2 Comments

  1. Elaine 12th Mar 2021

    I am in the midst of a lease negotiation for a new office site and need to know how much to budget for a paediatric occupational therapy clinic. Thank you.

    • Perfect Practice 15th Mar 2021

      Hi Elaine,
      Thank you for reaching out. We offer an obligation free site assessment that will allow us to accurately price a fit-out in your chosen space. Please reach our via phone on 1300 00 11 22 or email us at info@perfectpractice.com.au We look forward to hearing from you!

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