Force Majeure in Construction Contracts in Turkey: Earthquakes, Pandemics and Supply Chain Delays Introduction Construction projects are particularly vulnerable to unexpected events. A contractor may begin work under commercially reasonable assumptions and later face an earthquake, pandemic, government restriction, international transportation shutdown, border closure, embargo, labour shortage or severe disruption in the supply of critical […]
Construction projects are inherently high-risk operations. Employees may work at height, operate heavy machinery, enter excavations, handle electrical systems, work around cranes and lifting equipment, use hazardous substances and perform multiple activities simultaneously within a constantly changing work environment. For this reason, occupational health and safety in Turkish construction projects is not treated merely as […]
Construction project finance is fundamentally different from ordinary corporate lending. In a conventional corporate loan, the lender primarily relies on the borrower’s overall balance sheet, operating history and general creditworthiness. In a construction project, however, repayment may depend substantially on an asset that has not yet been completed and cash flows that have not yet […]
Construction sites are among the workplaces where the consequences of inadequate occupational safety can be immediate and severe. Falls from height, collapsing scaffolding, crane accidents, electrical contact, excavation failures, falling materials, defective machinery and failures in temporary structures can result in serious injury or death within seconds. When such an accident occurs in Turkey, however, […]
Construction projects are particularly vulnerable to economic volatility. A contract may be commercially reasonable when signed but become dramatically more expensive months later because of inflation, exchange-rate movements, increases in steel or cement prices, energy costs, labour expenses, imported equipment prices, taxation, financing costs or supply-chain disruption. This creates one of the most difficult questions […]
Construction projects involve a fundamental credit risk: the employer may make substantial financial commitments long before the contractor has fully completed its obligations. A contractor may abandon the project, fail to complete the works on time, become insolvent, refuse to remedy defects or commit another material breach. Even where the employer ultimately has a strong […]
Bank guarantees are among the most powerful risk-allocation instruments used in Turkish construction projects. A contractor may spend years performing a major infrastructure, residential, industrial or energy project while simultaneously maintaining several bank guarantees in favour of the employer. These guarantees may secure advance payments, contractual performance, completion obligations, defects during the warranty period or […]
Construction Insurance in Turkey: Contractor, Investor and Project Risk Protection Introduction Construction projects combine some of the largest financial risks in the real estate and infrastructure sectors. A single project may be exposed to fire, flooding, collapse, defective workmanship, damage to neighbouring buildings, employee accidents, design errors, theft of equipment, contractor insolvency, natural disasters and […]
Construction investment in Turkey can offer significant opportunities in residential development, commercial property, hotels, logistics facilities, industrial projects and mixed-use developments. However, construction investment carries legal risks that are fundamentally different from the risks involved in purchasing an already completed property. When an investor enters a project before completion, the investor is not merely purchasing […]
Construction defects do not always appear when a project is handed over. A newly completed apartment may look perfect during inspection. Months later, water may begin penetrating through the roof. Structural cracks may emerge after seasonal movement. Waterproofing defects may appear only after heavy rainfall. Underground drainage may fail after prolonged use. Insulation problems, defective […]