The Legal Position of Progress Payments and Securities Where the Contractor Declares Composition with Creditors in a Public Procurement Contract

23 October 2025

Contracts under Public Procurement Contracts Law No. 4735 are private law contracts in which the rights and responsibilities of contracting authorities and contractors are determined on an equal footing. Accordingly, the provisions of the contract must be applied in a manner that preserves the equality of the parties and does not give rise to a loss of rights. During the contract process, the contractor is required to perform its obligation in accordance with the terms of the contract, and the contracting authority has a duty to discharge its responsibility to make progress payments in respect of the work performed within the applicable period.