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 […]
Time is often one of the most valuable elements of a construction project. A shopping centre that opens six months late may lose an entire commercial season. A hotel delivered after the beginning of the tourism period may suffer substantial revenue losses. An industrial facility that cannot commence production on schedule may expose the employer […]
Web Tapu and Online Property Transactions in Turkey: Legal Convenience and Hidden Risks Introduction Digitalisation has significantly changed the way real estate transactions are initiated and managed in Turkey. The Turkish General Directorate of Land Registry and Cadastre (Tapu ve Kadastro Genel Müdürlüğü – TKGM) operates Web Tapu, an electronic platform through which property owners […]
Introduction Turkey attracts millions of foreigners for tourism, residence, employment, education, investment, property ownership, international trade, marriage and business. A foreign national may come to Istanbul for a short holiday and later purchase an apartment. Another may establish a Turkish company and remain in the country as an investor. A foreign student may enrol at […]
Introduction International marriages increasingly involve assets located in more than one country. A British woman may be married to a Turkish citizen who owns an apartment in Istanbul. A German husband may purchase a villa in Antalya during his marriage to a foreign spouse. A Turkish-French couple may live in France while owning several properties […]