Under what circumstances can the contractor terminate the contract?
If, after the contract is concluded, the contractor informs in writing with reasons that they will not be able to fulfill the contract due to their inadequate financial situation, except for force majeure cases, and additionally, without the need to protest, definite guarantees and, if any, additional definite guarantees are recorded, and the contract is terminated and settled according to general provisions.
Under what circumstances can the administration terminate the contract?
a) If the contractor fails to fulfill the contract in accordance with the tender document and contract provisions or fails to complete the work on time, despite the administration's written warning, and the same situation persists for at least ten days after the reasons are clearly stated, and
b) If it is determined that the contractor has engaged in the prohibited acts or behaviors listed in Article 25 during the implementation of the contract, without the need to protest, definite guarantees and, if any, additional definite guarantees are recorded, and the contract is terminated and settled according to general provisions.
What are the conditions required for termination due to prohibited acts or behaviors before the contract?
To interfere with or attempt to interfere with contract-related transactions by fraud, promise, threat, abuse of influence, gaining advantage, collusion, collusion, bribery, or other means
To prepare, use, or attempt to use counterfeit documents
To use fraudulent materials, tools, or methods during the performance or delivery of the contract work, to make defective or faulty production contrary to the rules of science and art
To harm the administration while fulfilling the commitment
To use one's knowledge and experience to the detriment of the administration
Except for force majeure, not to fulfill the commitment in accordance with the tender document and contract provisions
Transferring or taking over the contract in violation of Article 16 of the Law
What are the cases where termination is not necessary due to prohibited acts or behaviors?
If at least 80% of the contract has been completed and there is a public interest in completing the contract, the administration may require the contractor to complete the commitment without terminating the contract if:
There is not enough time for re-tendering the remaining part of the commitment due to urgency,
It is not possible to assign the commitment to another contractor, and
The contractor's prohibited act or behavior does not prevent the fulfillment of the commitment.
What additional works can be carried out under the contract due to unforeseen circumstances in procurement of goods, services, and construction contracts? What is the scope of this?
In case of a necessary increase in work due to unforeseen circumstances in procurement of goods, services, and construction contracts, the work subject to the increase:
Must remain within the original project of the contract,
Must not economically or technically burden the administration without being separable from the main work. Within the framework of the contract and tender document provisions, it can be assigned to the same contractor up to a rate including %10 of the contract price in lump-sum contracts for turnkey construction works, and up to %20 in contracts for goods, services, and construction works procured by obtaining unit price bids. In construction works conducted through unit price contracts, the President may authorize an increase in this rate up to %40 per contract.
What can be done if it is understood that the work cannot be completed?
If it is understood that the work cannot be completed under these conditions, the settlement is carried out according to general provisions without any increase.
If it is understood that the work will be completed with a contract price lower than 80% of the contract price, the contractor is obliged to complete the work. In this case, the contractor is paid, based on the prices at the temporary acceptance date, an amount equivalent to 5% of the price difference between 80% of the contract price and the price of the work done according to the contract prices, for the actual expenses incurred and the contractor's profit.
