Mehmet Ali DEMİRCİ
TABLE OF CONTENTS
FOREWORD.7
ÖZET .9
ABSTRACT .11
TABLE OF CONTENTS 13
ABBREVIATIONS19
CHAPTER ONE
THE NATURE OF CONSTRUCTION CONTRACTS
Exclusive Structure of Construction Projects23
Particularities of Construction Contracts .24
2.1. Custom-Made Projects.24
2.2. Duration .25
2.3. Complexity .26
2.4. Construction Site27
2.5. Financial Dimension .27
2.6. International Scope29
2.7. Voluminous Documentation 30
2.7.1. Plant Description/Specification .31
2.7.2. Design 31
2.7.3. Bill of Quantities (BoQ) 32
2.7.4. Contract Price 34
2.7.5. Payment Schedule / Milestones 34
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2.7.6. Others . 35
2.8. Need for Flexibility and Reformation. 35
Parties of a Construction Project 36
3.1. Employer (Owner-Client-Customer) 36
3.2. Contractor(Entrepreneur) 37
3.3. Subcontractor(s) 38
3.4. Engineer / Architect. 39
3.5. Quantity Surveyor (Cost Consultant/Engineer) . 40
3.6. Others 40
Obligations of Parties . 41
4.1. Contractor’s Obligations 41
4.1.1. Execution of the Work 41
4.1.2. Duty to Inform. 42
4.1.3. Delivery of the Work . 43
4.1.4. Statutory Obligations 44
4.2. Employer’s Obligations 44
4.2.1. Payment of the Contract Price 44
4.2.1.1. Fixed Price / Lump Sum: . 44
4.2.1.2. Unit Price / Re-Measurement: 45
4.2.1.3. Cost-Reimbursement / Cost-Plus:. 46
4.2.2. Non-Hindrance and Collaboration 46
4.2.3. Duty of Notice for Defects. 47
Types of Construction Contracts . 48
5.1. Build-Only or Design-Bid-Build 48
5.2. Turn-Key or Design and Build (DB). 49
5.3. Engineering, Procurement, and Construction (EPC) 50
Table of Contents 15
5.4. Build, Operate, and Transfer (BOT) 51
5.5. Construction Management (CM) .51
Place in Swiss and Turkish Legal System 52
The Integral Part of Construction Contracts: Standard Rules57
7.1. FIDIC .58
7.1.1. FIDIC Red Book 60
7.1.2. FIDIC Yellow Book61
7.1.3. FIDIC Silver Book62
7.2. NEC.62
7.3. JCT 63
CHAPTER TWO
POTENTIAL DISPUTES AND FORCE MAJEURE & HARDSHIP
Variations / Changes .65
1.1. Possible Variation Cases.65
1.2. The Scope of Variations66
1.3. The Role of Engineer in Variations .68
1.4. Valuation Matter69
Defects70
2.1. Before Taking Over.71
2.2. After Taking Over .72
2.2.1. Defects Notification Period (DNP) .72
2.2.2. Remedies Against Defects .73
2.3. Serial Defects .74
2.4. Performance Certificate .74
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Delays 75
3.1. Types of Delays 78
3.1.1. Critical / Non-Critical Delays . 78
3.1.2. Excusable / Non-Excusable Delays 79
3.1.2.1. Compensable / Non-Compensable Delays:. 80
3.1.3. Concurrent Delays. 80
3.2. The Completion Date. 83
3.3. Extension of Time (EoT) . 84
3.4. Entitlement to Additional Expenses and Loss 86
3.5. Liquidated Damages (LDs) . 87
Force Majeure 89
4.1. Differences Arising From Impossibility Types 92
4.2. Perspective of FIDIC. 93
4.2.1. Consequences of Exceptional Events 95
Hardship. 96
Force Majeure and Hardship Scenarios With Current Issues Through The
Example of A NPP Project in Turkey 98
6.1. COVID-19 . 99
6.2. Climate Chance 100
6.3. Sanctions and Embargos 103
6.4. Inflation or Fluctuations 104
Termination 105
7.1. Employer’s Termination 106
7.2. Contractor’s Termination and Suspension 108
Table of Contents 17
CHAPTER THREE
DISPUTES RESOLUTION METHODS AND MULTI-TIER CLAUSES
Conciliation and Mediation .110
Dispute Boards112
2.1. FIDIC DAAB.113
Arbitration 114
3.1. Features and Advantages.115
3.2. Drawbacks116
3.3. Ad Hoc vs Institutional Arbitration.118
Multi-Tier Clauses 119
CONCLUSION.123
BIBLIOGRAPHY 127
