Public Procurement Contracts

Public procurement contracts are referred to as contracts formed as a result of public tenders. There are a total of five types of contracts, mainly three types as envisaged in Article 6 of the Public Procurement Contracts Law No. 4735.
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  • In construction works; turnkey lump sum contract based on implementation projects and the corresponding location lists, for the total amount proposed by the bidder for the entire work,
  • In procurement of goods or services, lump sum contract based on detailed specifications and quantities determined by the administration for the entire work,
  • In construction works; unit price contract based on preliminary or final projects and the corresponding location lists and unit price schedules, or in procurement of goods or services based on detailed specifications of the work; for each work item listed in the table prepared by the administration, the total amount obtained by multiplying the quantity of each work item with the unit prices proposed by the bidder,
  • In construction works; mixed contract resulting from tenders where lump sum turnkey for some items and unit price offers for some items are applied together,
  • Individual contract signed between the administration and the contractor based on a framework agreement.

What is the Legal Nature of Public Procurement Contracts?

Firstly, it is possible to say that there is much debate on this issue. Both in doctrine and in the jurisprudence of the Court of Cassation, these contracts are generally considered as private law contracts due to the fact that the legislator subjects the parties to equal rights and obligations in the application of contract provisions within the scope of the law. However, this situation is not absolute. Because the legislator did not treat the parties equally in all provisions within the scope of the law. According to the law, in cases where the administration has superior rights and powers, this contract should be evaluated not as a private law contract but as an administrative contract. For example; contracts for the purchase of food or equipment made by the administration with private legal entities are private law contracts. However, contracts made in accordance with the regulation made in Article 24 of this law definitely do not have the nature of private law.

What are the Types of Termination of Public Procurement Contracts?

  1. Termination by the Contractor
  2. Termination by the Administration
  3. Termination due to prohibited acts or behaviors before the contract
  4. Termination of the contract due to force majeure

What is the Procedure for Termination?

In case of termination by the Contractor, the transfer of the termination request to the administration, the expiration of the period determined as at least 10 days, the determination of the prohibited act or behavior of the contractor during the implementation of the contract as listed in Article 25, or if the prohibited act or behavior is determined after the contract is concluded, the contract is deemed terminated as of the determination date. A termination decision is made by the administration within seven days following these dates. This decision is notified to the contractor within five days following the decision date.

How Should Disputes Arising from the Conclusion of Public Procurement Contracts be Resolved?

Lawsuits against actions to be taken before the signing of the contract are under the jurisdiction of administrative courts. However, disputes arising from the implementation of contract provisions after the contract is signed are under the jurisdiction of judicial courts.
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