What "Turnkey" Actually Means
In packaging machinery, "turnkey" means the supplier is responsible for delivering a complete, running production line — not individual machines. The scope typically includes: process design and line layout, all equipment (filling, capping, labelling, conveying, end-of-line handling), factory shipping and installation, integration and commissioning, operator training, and final performance verification.
What turnkey does not automatically include (and must be explicitly specified): civil engineering works, utility connections (compressed air, water, drainage, electrical mains), auxiliary equipment supplied by third parties, spare parts inventory, and ongoing service contracts. Every item not listed in the scope is your responsibility — or becomes a change order at project cost.
Key Contract Clauses to Review
Performance guarantee: Specify the machine speed, fill accuracy, changeover time, and uptime rate the line must achieve at handover — not just at FAT. Require the supplier to demonstrate these parameters on your actual products in your facility before signing acceptance. Vague guarantees like "as per industry standard" are unenforceable.
Factory Acceptance Testing (FAT): FAT is conducted at the supplier's factory before shipment. It verifies that the line runs at the specified speed and accuracy with your product (or an approved substitute) under controlled conditions. Attend FAT personally, run your full SKU range, and document results with signed test sheets. Any unresolved deficiency at FAT should trigger a hold on payment milestone.
Site Acceptance Testing (SAT): SAT is conducted at your facility after installation and commissioning. It confirms that the line performs as specified in your actual production environment — your utilities, your containers, your operators. SAT is the final milestone before warranty clock starts. Require a minimum 8-hour continuous run at rated speed as part of SAT criteria.
Payment milestones: Avoid structures that pay the majority of contract value before SAT completion. A common fair structure is: 30% at order placement, 40% at FAT completion, 30% at SAT completion and final acceptance. This maintains financial leverage through each project phase.
Timeline Expectations
A realistic timeline for a medium-complexity turnkey line (filling, capping, labelling, conveying, checkweigher, end-of-line palletiser) from purchase order to production is typically 18–28 weeks depending on machine complexity, customisation level, and shipping distance.
- Weeks 1–4: Engineering review, final drawings, production order release
- Weeks 5–16: Manufacturing
- Week 16–18: FAT at supplier factory
- Weeks 18–22: Shipping and customs clearance
- Weeks 22–26: Installation and commissioning
- Weeks 26–28: SAT, operator training, final handover
Delays most commonly occur at: utility connection readiness (site not ready when machinery arrives), container or label supply changes after FAT, and unresolved engineering questions during manufacturing. Address these in the project risk register before signing.
Post-Commissioning Support
Turnkey projects do not end at SAT. Specify in the contract: warranty duration and terms (12 months from SAT is standard; what it covers, what voids it), response time for critical breakdowns, spare parts recommended stock list and pricing commitment, remote diagnostics availability, and annual service visit terms.
The warranty period is when most mechanical issues surface. A supplier without established after-sales infrastructure — local service engineers, spare parts stock, technical hotline — will leave you unsupported at the moment you need them most. Evaluate post-sale capability as carefully as the machine specification.
Planning a Turnkey Project?
Share your production requirements, facility details, and target start-up date. We will provide a preliminary line specification with scope definition, timeline estimate, and an indicative budget range — at no cost.
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