Legal Assistance in Tender Cancellations

Legal Assistance in Tender Cancellations

1. Why Should Legal Assistance Be Sought in Tender Cancellations?

Under Article 39 of Public Procurement Law No. 4734, contracting authorities may reject all submitted bids and cancel a tender following a decision by the tender commission and the approval of the contracting officer.

Tender cancellation decisions may give rise to different legal consequences depending on the nature of the grounds for cancellation, the stage at which the decision was taken and the specific circumstances of the case. Each cancellation decision must therefore be assessed on its own merits.

A decision to cancel a tender constitutes an administrative act and is subject to judicial review as to its lawfulness. Although contracting authorities have discretionary powers in this regard, such powers must be exercised in accordance with the public interest and the requirements of public service. The grounds for cancellation must therefore be specific, clear and capable of being reviewed, particularly to prevent arbitrary administrative action.

The remedies available against an unlawful tender cancellation decision are governed by Law No. 4734 and the relevant secondary legislation. Depending on the circumstances of the case, these remedies may include:

• Filing a complaint with the contracting authority;

• Filing an application for review with the Public Procurement Authority; and

• Initiating proceedings before the administrative courts.

Matters such as the applicable time limits, legal standing and the existence of a legitimate interest are decisive in ensuring that the process is conducted properly and effectively.

2. How Do We Manage the Tender Cancellation Process?

Companies adversely affected by a tender cancellation may face a risk of making procedural or substantive errors. The errors most frequently encountered include:

• Failing to calculate the applicable time limits correctly;

• Failing to examine the legal basis of the grounds for cancellation;

• Choosing an incorrect legal remedy;

• Failing to remedy deficiencies in the available information and evidence; and

• Failing to comply with the applicable procedural requirements.

Failure to observe these requirements may result in the rejection of the application and the loss of the company’s rights.

Tenderers that have participated in a procurement procedure and are subsequently faced with a cancellation decision may seek legal assistance. In relation to tender cancellation decisions, Kılıç Law and Consultancy Office conducts a legal analysis by assessing the applicable legislation, relevant judicial decisions and the specific circumstances of the case as a whole.

Within this framework, we examine and pursue the administrative application and litigation processes concerning tender cancellations in accordance with the applicable legal framework.

For further information, please contact Kılıç Law and Consultancy Office.