The legal management of construction projects actually requires the use of knowledge and experience acquired in the relevant parts of many different branches of law, notably beyond the construction law in a narrow sense. In addition, it is obligatory to know the law and legal practice in the country where the construction project will be accomplished.
It is very important to work with a lawyer from the outset of construction projects. The control of the administrative provisions of tender specifications, the control and signature of articles of association and the signing of constituent agreement of the partnership, which will realize the project are the elements that should be accomplished from the outset of the work but such elements might determine the profitability, success and even the performability of the work. In this respect, we aim to provide a comprehensive support to the companies we work with as from the receipt of the administrative specification until the return of the letters of guarantee.
Please kindly find below some of the legal services provided by Yalım Turan Law Firm:
- Control of the administrative specification as well as of the tender agreement:
It is possible to negotiate, in the literal sense, with the Employer Administration during the control of the administrative specification and the tender contract, provided that the issues permitted and required by law are known. For example, in case it is desired to foresee a right to increase the unit price, it is necessary to know whether the law allows it and whether it is accepted or not in the general practice in that country. Thanks to the experience it had gained in the area of tender contracts’ controls, our law firm aims to inform its clients with respect to the legal and economic suitability of these contracts by considering potential problems and possibilities.
- Drafting and/or control of partnership agreements
Establishing a partnership within the scope of construction works where more than one company will come together is one of the most important stages of the project. This contract to be signed at the beginning of the work must be meticulously drafted. Responsibility of each company, job and price increase and/or decrease, path to follow in case of any potential problems, sharing of profit and loss, sharing of penalties, conditions of termination of partnership, management bodies, rights and responsibilities of the leading company, discharge of the partner which does not perform its work and dispute resolution should be considered at the beginning of the work and should be concluded accordingly. A poorly written partnership agreement might even put things at a standstill and cause hence irreparable damage.
Our law firm has extensive experience in the drafting and preparation of joint venture and consortium agreements in Turkish and French.
- Drafting of the decisions of the General Assembly and those of the Board of Directors in the contract language
It is of utmost importance that the bodies foreseen in the partnership agreements of partnerships established in construction projects perform all their missions and responsabilities that are foreseen in the contract. Some rules, which may seem to be as a redundant formality and that are ignored during the smooth execution of the project, are of great importance when problems arise in the project and between the partners.
Our law firm provides legal services to its clients in the language of the contract and in accordance with the law of the contract while drafting the General Assembly’s resolutions as well as the Board of Directors’ resolutions by considering the principles of preventive law.
- Contractual correspondences
Especially when you work within the scope of construction projects, which are realized in a foreign country, all correspondences should be meticulously done at the beginning of the project, even if it is not considered at the beginning of the project that a claim could be made or a dispute could arise in the future. In case no written notification is made as from the beginning of the project to the Employer, partner or sub-contractors; it would be difficult to prepare the file, which will serve to prove the rightfulness when problems arise. Besides, each written text would create in the other party the perception that the dispute could be transferred to the legal arena. The fact that a company, which has not previously sent any letter to its partner, begins to send written notifications, this would suggest that the swords were drawn and this may have a counter-reaction.
As Yalım Turan Law Office, we have been providing services to contractor companies for many years with respect to the drafting of correspondences to be sent to the Employer Administration, control of these correspondences, preparation of template texts and replying to the texts sent by the Employer Administration.
- Claims, Contracts Amendments and Addenda
Claims, contracts amendments and addenda form one of the most important legal issues for companies working in the construction sector. In order to create a claim, all contractual documents (Administrative Specification, Technical Specification, General Provisions) should be analyzed, and the legislation should be known (Public Procurement Law, Procedural Law, Civil Law, Law of Obligations) and appropriate position should be taken by considering the specific situation of the project.
It is very important to establish the claim and to be able to make the Administration accept such claim both through consensus or trough legal means. At the same time, in case the accepted claim is subject to an addendum or amendment, this addendum or amendment should also be meticulously verified. While accepting some requests, it would be useful to take necessary measures in order not to give up any other elements that may be important in the future and to prevent any loss of rights.
As Yalım Turan Law Firm, we have been providing for many years legal consultancy services to Turkey’s largest construction companies primarily with respect to additional works, price increase and price decrease and the drafting and control of amendments on time extension.
- Drafting, control and management of subcontracts
As for the writing of contracts on construction projects, it is necessary to have a minimum level of knowledge about the work to be performed as this is the case for the drafting of all kinds of contracts. Our law firm has experience in contract drafting at every stage of works of tunnels, roads, dams, art structures including contracts of studies and control contracts. Besides, our law firm has experience in control and management of such contracts. The French contracts are drafted by our lawyers who are graduates of the French Sorbonne University Faculty of Law. Both the compliance of the contract with the French contractual practice and with the relevant legal system, which will govern the said contract are cautiously controlled.
- Control of the bank letters of guarantee
Bank guarantee letters present different characteristics. The most important difference in bank letters of guarantee is that either the letter of guarantee has a guarantee of immediate payment without any delay upon first written request or such letter of guarantee disposes of a guarantee of payment when a contractual defect is alleged. This difference is reflected generally in a letter of guarantee subject to ICC URDG 758, in the question of whether Article 15 is applicable or not. It is important that clients working in the construction sector aim to narrow or extend the scope of the letter of guarantee according to the position they work.
Apart from the above, some letters may be arranged as surety and some letters may be arranged as undertaking. In this case, such control of the scope and content of these letters would be more important.
- Monitoring of Insurance Policies, follow-up of notifications and refunds
Our law firm has experience in the coverage, guarantee, exception and exemption control of all insurance policies required for a construction project. Besides, with respect to important disasters it has experience concerning the follow-up of notification and repayments.
Yalım Turan Law Firm, has ensured that many major projects in Turkey, Algeria and Morocco be covered by insurance policies with the most appropriate premium rates and the largest warranties. It has successfully completed the notifications of many damages of a high amount as well as the relevant reimbursements of such damages.