Insights
Commentary on tender procedures, contract performance and disputes, published with its sources and last review date.
- Tender Process Disputes
Amendments Made in Procurement by Decree Law No. 696
By Article 127 of the Decree Law, which was to enter into force on 2 January 2018, the following transitional articles were added to Decree Law No. 375.
12 February 2023
- Tender Process Disputes
What Kind of Changes Have Been Made in Tenders Concerning Workers and Contractors?
Decree Law No. 696, concerning the transfer of subcontracted workers employed within the scope of service procurements based on the employment of personnel to established posts, was published in the Official Gazette on 24 December 2017. The Communiqué setting out the procedures and principles for the implementation of that Decree Law entered into force upon its publication in the Official Gazette of 1 January 2018. The Communiqué clarifies certain aspects of implementation. These matters are summarised below:
12 February 2023
- Tender Process Disputes
Regulatory Board Decision on Service Procurements Based on the Employment of Personnel Published
Decree Law No. 696 on the Making of Certain Arrangements Within the Scope of the State of Emergency, which entered into force upon its publication in the Official Gazette No. 30280 of 24 December 2017, together with the Procedures and Principles published in the Official Gazette No. 30288 of 1 January 2018 pursuant to that Decree Law, set out arrangements and explanations concerning the transfer of persons employed under contracts arising from service procurement tenders based on the employment of personnel to permanent worker posts or to worker status in local administration companies.
12 February 2023
- Contract Disputes
Force Majeure
Following the signature of a procurement contract, situations may arise in which it becomes impossible for contractors to perform the contract. For example, where the legislation changes or a historical artefact is discovered on the site, the contractor becomes unable to perform the work at all or within the agreed period.
12 February 2023
- Contract Disputes
Procedure, Conditions and Consequences of Applying to the Public Procurement Authority in the Event of Unforeseeable and Unavoidable Events Preventing Performance of the Contract
It is provided that, in order for the situations referred to above to be accepted as force majeure by the contracting authority, including in cases such as the granting of an extension of time or the termination of the contract, the event must not arise from any fault attributable to the contractor, must be of a nature that prevents performance of the undertaking, must be beyond the contractor's power to remove, must be notified by the contractor to the contracting authority in writing within twenty days following the date on which the force majeure event occurred, and must be documented by the competent authorities.
12 February 2023
- Tender Process Disputes
Inspection and Acceptance Procedures in Procurements Through the State Supply Office
The inspection and acceptance procedures for goods and services procured through the State Supply Office by public institutions and organisations that are subject to public law, are under public supervision, or use public resources vary according to the supply method employed by the State Supply Office.
12 February 2023
- Financial Disputes
Price Difference in Goods Procurement: What Do the Amendments to the Principles on Price Difference Mean?
The amendment made by the Principles Amending the Principles to Be Applied in the Calculation of Price Differences in Goods Procurement entered into force upon its publication in the Official Gazette No. 30342 of 24 February 2018. Accordingly;
12 February 2023
- Tender Process Disputes
Leasing in the Documentation of Vehicles Owned by the Tenderer
Financial leasing is the acquisition by companies of the vehicles they use by way of lease. In procurements such as personnel transport, vehicle rental and ambulance services in particular, the vehicles required to be owned by the tenderer are specified in the tender documents. Where a company wishing to participate in the tender has acquired vehicles by way of financial leasing, it may participate in the tender by documenting them appropriately. To this end;
12 February 2023
- Tender Process Disputes
Cases in Which a Work Experience Certificate May Not Be Used: Conversion of a Commercial Undertaking into a Commercial Company
Article 180 of the Turkish Commercial Code, under the heading “IV - Change of type, 1. General provisions”, provides that a company may change its legal form and that the company converted into the new type is the continuation of the former one, while Article 181, under the heading “Valid changes of type”, enumerates the types of capital company into which a capital company may be converted.
12 February 2023
- Public Real Estate
Legislative Amendments That Eliminate Transparency, Competition and Public Scrutiny in Tenders
In Türkiye, the words most readily associated with public procurement have been “corruption” and “favouritism”. It is publicly known that practices such as corruption, irregularity, political patronage, favouritism and the sharing of public resources among particular groups were widespread in the public tenders of the 1983-2003 period, held under State Procurement Law No. 2886, which was scarcely amended during the twenty years following its entry into force in 1983.
12 February 2023
- Financial Disputes
Stamp Duty Practice: Stamp Duty in Procurement Procedures
The taxation procedures applied under Stamp Duty Law No. 488 also apply to tenders and contracts for goods, services and works procured under Public Procurement Law No. 4734. Stamp duty is levied on certain papers issued, or documents created in electronic form, within the scope of the tender and the contract.
12 February 2023
- Financial Disputes
The Condition for Stamp Duty Exemption in Tendered Works: the Tax, Duty and Fee Exemption Certificate
Services falling within the scope of these tenders are described as “foreign currency earning services and activities”, and a tax, duty and fee exemption certificate is issued in respect of them. Tax exemption is thereby applied to sales and deliveries treated as exports and to foreign currency earning services and activities.
12 February 2023