Consequences of the Bankruptcy of a Contractor Capital Company During the Public Procurement Contract Process

27 October 2025

Public procurement contracts are private law contracts concluded between contracting authorities within the scope of Public Procurement Law No. 4734 and contracting firms. These contracts are performed under the provisions of Public Procurement Contracts Law No. 4735. However, in order to be able to perform the contract, contractors with whom a contract has been signed must maintain their economic and financial standing at the level declared in the tender and must not become bankrupt. Since the bankruptcy of a capital company during the contract process would adversely affect the meeting of public requirements on appropriate terms and in good time, this situation is addressed in detail in the procurement legislation.