As all other actors in Turkish economy, public procurement
contractors have also suffered due to unexpected economical
fluctuations. Many of the public procurement contracts has become
more expensive for contractors, even some are not feasible anymore.
More importantly, some contractors have faced risk of
debarment.
Lawmakers, to deal with this problem, promulgated Law No. 7161
dated 17/01/2019 ("Law") which adds a Provisional Article
to Public Procurement Contracts Law (Law No. 4735, dated
05/01/2002). The Provisional Article offers a way out
(termination/assignment) for public procurement contractors of
which manufacturing cost unexpectedly increased.
Accordingly, Provisional Article applies to the following; (1)
Contracts that have been entered into before August 3, 2018; (2)
Contracts that have been executed in accordance with the Law No.
4734 (also applies to exceptions in the Article 3 of Law No. 4734);
(3) Contracts that are still in effect as of January 18,