Turkey Amends Public Procurement Regime

Significant amendments were introduced to the Public Procurement Code No. 4734 (“PPC”) and Public Procurement Contracts Code No. 4735 (“PPCC”) in the Omnibus Bill No. 7161, published in the Official Gazette dated 18 January 2019 and numbered 30659 (“Omnibus Bill”).

Option to transfer or terminate agreements in case of unexpected cost increases

The most significant amendment introduced by the Omnibus Bill is the appendage of a Provisional Article 4 to the PPCC (“ProvisionalArticle”). The Provisional Article allows contractors to terminate or assign public procurement contracts by reason of unexpected increases in manufacturing costs.

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