ARTICLE · 07 DECEMBER 2016

Termination Of Defense Industry Contracts And Related Consequences

Kasaroglu Law Office

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Turkish defense industry, which is equipped with high technology systems and becoming more powerful due to its technological attempts and improved projects, recently has become a significant market for entrepreneurs and investors who are active in this field.

TurkeyGovernment, Public Sector

Hikmet Kasaroğlu

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Turkish defense industry, which is equipped with high technology systems and becoming more powerful due to its technological attempts and improved projects, recently has become a significant market for entrepreneurs and investors who are active in this field. Today, many investors get involved in defense industry projects or they provide materials and services as subcontractor or supplier of such projects.

The defense industry projects and the related purchases are realized by Undersecretariat for Defense Industries (SSM) by using standard forms of contracts which are specifically drafted by SSM for such purpose. Due to the reason that the related subcontracts are also drafted in a manner as to include same provisions of such standard SSM contracts ("Flow Down" contracts), the subcontractors may be subject to serious sanctions as a result of the severe provisions which are regulated in favor of the owner.

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