Construction and Engineering Law Consulting in Turkey

Construction law is a branch of law that deals with matters relating to building construction, engineering and related fields. It is in essence an amalgam of contract law, commercial law, employment law and tort. Construction law covers a wide range of legal issues including contract, negligence, bonds and bonding, guarantees and sureties, liens and other security interests, tendering, construction claims and related consultancy contracts. Construction law affects many participants in the construction industry, including financial institutions, surveyors, architects, builders, engineers, construction workers and planners. Construction law incorporates the regulatory framework (including security of payment, planning, environmental and building regulations); contract methodologies and selection; subcontract issues; causes of action and liability, arising in contract, negligence and on other grounds; insurance and performance security; dispute resolution and avoidance.

Construction Law encompasses all aspects of the legal process, from the initial bidding on the project, to the negotiation and the formation of the contracts. Although no special contract formalities are required, it is normal practice to use standard-form contracts. Construction law has been affected by the requirements in public contracts, which include surety bonds and other procedures.

The construction sector is a key sector for global economy and comprises a wide range of products, services and technologies. These are likely to vary in terms of the economic value they generate, reflecting differences in their use of particular factors of productions (raw materials, physical capital, intangible investment, skilled and non-skilled labour and knowledge) and the value which they generate from them. The contribution of construction industry towards the global GDP revolves around one-tenth of the total amount. World construction industry is also a potential employment generator and provides work to almost seven percent of the total employed person in the whole world. The extent of this industry has become so vast that the energy, in the form of electricity or fuel, consumed by it hovers around two-fifth of the total energy consumed all over the globe. The resources that are utilized in world construction industry is also staggeringly high and itself consumes fifty percent of the total world resources.

Likewise, construction industry plays a major role in Turkish economy, accounting for well over 6% of GDP and employing some 1.5 million people. When the direct and indirect impacts on other sectors are taken into account the share of the construction sector in the Turkish economy reaches 30% and the employment rate (excluding agriculture) reaches %10. Increased economic stability, decreasing exchange and interest rates and attractive long‐term loans stimulated a demand for housing, playing a major role in this process; and generated a growth rate of 8.6 % in 2013.

Additionally, the unique geographical location of Turkey at the crossroads of three continents – Europe, Asia and Africa – contributes a great deal to the global competitiveness of Turkish construction products and contracting services abroad. In 2013, a total number of 42 Turkish construction/engineering companies were ranked among the World's "Top 250 International Contractors," in the ENR – Engineering News Record (the leading industry magazine). With the 42 construction/engineering companies listed in the Report, Turkey ranked second behind China. These 42 companies have achieved total revenue of $20.4 billion (TL 44.16 billion) in the international markets and they increased their revenue by 21.4 percent compared to the previous term. The share of these firms in the total receipts of all 250 companies increased to 3.8 percent from 3.3 percent.

Turkish construction sector continues to be a vital sector of Turkish economy and one of the largest construction markets in the region. The investment environment in Turkey is becoming increasingly attractive for both local and foreign investors, and a positive growth rate in construction is expected in the years ahead.

Esmeray Law Office serves a wide array of industry players including contractors, public and private owners, developers, engineers, financial institutions, investors, vendors, designers and lenders.

We advise clients on the selection of project delivery systems, risk allocation strategies, government contracting, and the negotiation of contract documents including those published by the International Federation of Consulting Engineers (FIDIC), manuscripted design, construction, design/build, and engineering, procurement and construction (EPC) contracts.

Our services include:

Pre-construction stages of a project:
• Drafting, reviewing and negotiating architecture, engineering, procurement, construction, design and financing contracts of all types;
• Identifying appropriate project delivery methods;
• Preparing bid packages and proposals;
• Drafting, reviewing and negotiating development, completion and takeover agreements;
• Advising clients on land use entitlements, licensing, permitting and other regulatory requirements;
• Counseling clients on claims avoidance, risk allocation, management and scheduling

During the construction stages of a project:
• Assisting clients in documenting problems and positions;
• Providing advice on likely judicial interpretation of contract provisions;
• Assisting clients with contractually required notices; negotiating and drafting change orders and contract amendments;
• Evaluating claims regarding schedule impacts, and providing advice on claims mitigation;
• Assisting clients on the timely, practical settlement of contract management issues.

Dispute resolutions:
• Advising clients on preserving and perfecting construction lien and bond claims;
• Representing parties on performance bond claims, default termination disputes, and take-over issues;
• Representing contractors, design engineers and other participants in disputes and litigations before and during the construction phase and in post-construction proceedings;
• Representing contractors, vendors and owners in domestic and international cases involving the construction of power projects, refineries, transmission lines, solar and wind power generating facilities, and other energy facilities;
• Representing contractors, design engineers and other participants in disputes and litigation involving design and construction of public works, including railway constructions and water treatment facilities;
• Representing clients in connection with bid protests regarding awards of public works contracts;
• Representing owners, developers and contractors in disputes and litigation involving the construction and development of commercial facilities, such as office buildings and high-rises, shopping centers, storage facilities, residential sites, apartments, hotels and related improvements, industrial facilities, utilities and infrastructure.