Which of the following is a true statement regarding turnkey contracts?

A turnkey contract is a comprehensive agreement where one firm, usually a contractor, takes on the responsibility of developing a project and delivering it to the client in a ready-to-use condition. This often includes the provision of design, construction, and sometimes even operation and maintenance support, all tailored to the client's needs.

The correct answer relates to the nature of investment in turnkey projects. Typically, these contracts may not necessarily require a significant investment from the client, as the contractor usually covers the initial capital costs associated with creating the turnkey solution. This aspect is particularly appealing to clients looking to minimize their upfront financial commitments.

While turnkey contracts often involve detailed collaboration and expertise from the contractor, the purpose of the agreement is to deliver a fully operational end product. Therefore, clients may find themselves with a reduced need to invest heavily in the project, as the contractor effectively manages the development process. This is a crucial attribute of turnkey contracts that distinguishes them from other project delivery methods, where a client might need to be more hands-on or invest substantially in resources and management.