Project financing, a construction contract requiring a contractor to complete the design, engineering, procurement, construction, and start-up of a project or facility by a certain date, for a fixed price and at certain performance specifications. For more information on these types of contracts and project finance generally, see Practice Note, Understanding Project Finance Construction Contracts and Project Finance Construction Contract Structures.

Leasing, when the landlord delivers the leased premises ready for the tenant to immediately begin business from its first day of occupancy. When the landlord delivers the leased premises in a turnkey condition, the tenant improvements are performed by the landlord at the landlord's expense according to plans and specifications previously agreed on by the parties.

Unlike a lease with a tenant allowance where the tenant pays for any improvement costs in excess of the tenant allowance amount, a lease with a turnkey arrangement shifts on to the landlord the financial risk of any improvement costs.