Applications and Economic Profiles of the Turnkey Contract Business Model

The real estate sector, particularly in Europe, plays a significant role in energy consumption, with older and post-World War II buildings contributing most to air emissions. To address this, the European Union has implemented directives since 2002, emphasizing energy efficiency in both existing and new buildings. In response, European countries’ governments have introduced incentives to encourage efficiency in existing facilities and the construction of new, high-efficiency buildings. This has led to the development of innovative and sustainable business models, notably the Turnkey Contract model, originating from the United States and exclusively used for new constructions. This article comprehensively analyses the Turnkey Contract business model, focusing on 11 European case studies from Belgium, Germany, the Netherlands, and Spain. The study employs Multiple Correspondence Analysis (MCA) and K-modes cluster analysis to identify economic profiles associated with this model. The results reveal two distinct clusters: one with private ownership, smaller-scale buildings for private use, and a construction company as the main contractor; the other with public ownership, larger-scale buildings for public use, and an architecture/engineering firm as the main contractor. The analysis also highlights commonalities between the two clusters identified, such as a project duration of 1–3 years, energy class A properties, and subsidized interventions like insulation and renewable energy installations. The study provides insights into how ownership structure and intended use influence the variations in the Turnkey Contract business model, offering a foundational exploration for future research to consider economic, financial, and cultural specificities across European countries.