Insights
Commentary on tender procedures, contract performance and disputes, published with its sources and last review date.
- ARTICLE4735Contract Disputes12 February 2023
Who Should Bear the Laboratory Costs Arising in Inspection and Acceptance?
Under the procurement legislation, construction supervision officers have various duties and powers directed at ensuring that the work performed by the contractor is free from deficiencies, errors and defects and that the materials used comply with the specifications.
- ARTICLE4734Tender Process Disputes12 February 2023
Domestic Goods Practice: The Most Recent Arrangements on the Procurement of Domestic Goods
A significant budget deficit is recorded in our country each year. For example, the budget, which recorded a deficit of TRY 23.5 billion in 2015, recorded a deficit of TRY 29.3 billion over 2016 as a whole.
- ARTICLE4734Tender Process Disputes12 February 2023
Corruption Perceptions Index Published: Türkiye Falls Further in the Rankings
Türkiye's score and ranking in the Corruption Perceptions Index have continued to decline rapidly since 2013. According to the index results, Türkiye, whose score fell by one point to 40, dropped a further six places to rank 81st among 180 countries. Having declined in the index for four consecutive years, Türkiye has thus fallen 28 places over the last five years, with a drop of ten points.
- ARTICLE4734Debarment and Defence12 February 2023
If a Person Participating in a Tender as Proxy for a Company Is Debarred, Is the Company Also Debarred?
Subparagraph (a) of Article 11 of Law No. 4734 provides that persons temporarily debarred by contracting authorities from participating in public tenders may not participate in tenders in any manner, whether directly or indirectly or as a subcontractor, on their own behalf or on behalf of others.
- ARTICLE4734Debarment and Defence12 February 2023
Prohibited Acts and Conduct: Breaches of Business and Professional Ethics Entail Exclusion from the Tenders of the Same Contracting Authority for Five Years
Subparagraph (f) of the fourth paragraph of Article 10 of Law No. 4734 lays down provisions preventing tenderers found to have engaged in conduct contrary to business and professional ethics from participating in tenders for a period of five years. Accordingly, tenderers;
- ARTICLE4734Tender Process Disputes12 February 2023
Instruments Acceptable as Security: the Use of Surety Insurance and Surety Bonds in Tenders Has Begun
This Law has opened the way for the use of surety insurance (surety bonds) within the scope of letters of guarantee in tenders falling under Public Procurement Law No. 4734. Specifically;
- ARTICLE2886Public Real Estate12 February 2023
Is It Possible for Municipalities to Allocate Their Immovable Property Without Holding a Tender?
Complaints reach us to the effect that certain municipalities allocate their immovable property, by decision of the municipal council, to various organisations that do not qualify as public institutions, at very low prices or even free of charge.
- ARTICLE4734Tender Process Disputes12 February 2023
What Should Be Taken into Account in Applications to the Public Procurement Authority?
The highest administrative supervisory body in public procurement is the Public Procurement Authority. Under Article 53 of Public Procurement Law No. 4734, the Authority supervises the process from the commencement of tenders until the signature of the contract.
- ARTICLE4734Tender Process Disputes12 February 2023
May Contracting Authorities Bring Proceedings Against the Public Procurement Authority? What Can Authorities Whose Tenders Are Cancelled by the Authority Do?
Contracting authorities that suffer a loss of rights as a result of a decision of the Public Procurement Authority may bring proceedings before the Ankara Administrative Courts.
- ARTICLE4734Tender Process Disputes12 February 2023
The Ceiling Price for Labour Will Now Be Set by the Ministry of Finance
“For services based on the employment of personnel within the scope of subparagraph (e) of the first paragraph of Article 62 (excluding consultancy service procurements), before the tender is launched;”
- ARTICLE4734Tender Process Disputes12 February 2023
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.
- ARTICLE4734Tender Process Disputes12 February 2023
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…
- ARTICLE4734Tender Process Disputes12 February 2023
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…
- ARTICLE4735Contract Disputes12 February 2023
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.
- ARTICLE4735Contract Disputes12 February 2023
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…
- ARTICLE4734Tender Process Disputes12 February 2023
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.
- ARTICLE4735Financial Disputes12 February 2023
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;
- ARTICLE4734Tender Process Disputes12 February 2023
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…
- ARTICLE4734Tender Process Disputes12 February 2023
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.
- ARTICLE2886Public Real Estate12 February 2023
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…