Arbitration is accepted as a way of settling disputes arising from public tenders for product purchase, consulting and service procurement, construction works and framework agreement tenders.
The related regulations are published in the Official Gazette dated 30th December 2017.
Pursuant to the relevant regulations, the administration can choose either Turkish Courts or İstanbul Arbitration Centre for the resolution of disputes which may arise between parties during the execution of the contracts signed upon the public tenders for product purchase, consulting and service procurement, construction works and framework agreements.
The dispute resolution clause to be added in the contracts shall be as follows, should the preference be the Turkish Courts:
“…………… (The judicial authority that the administration is located shall be written) Courts and enforcement Offices are entitled for the resolution of the disputes arising from the execution of this contract and its attachments.”
The arbitration clause to be added in the contracts shall be as follows, should the preference be the arbitration:
“For all the circumstances except the cases where the residence or domicile or place of business of the parties to the arbitration agreement are located in different countries;
Any dispute which may arise from the implementation of the contract and its attachments (save for the circumstances where the administration has the discretion to act and decide upon on its own according to the contract) shall be finally settled in accordance with ISTAC arbitration rules. Place of arbitration is …………… (Place of the office of administration or İstanbul shall be written). Arbitration language shall be Turkish. Arbitration tribunal shall consist of three (3) arbitrators. Turkish law shall be applied to the merits of the dispute.
In cases where either the administration or the contractor applies to arbitration, the contractor shall continue to works and shall comply with the decisions given by the administration, related with the execution of the work.”
- Administration shall make a choice between the following texts which is specified in (a) and (b) subclauses below in addition to above mentioned text.
a. ”In circumstances where the residence or domicile or place of business of the parties to the arbitration agreement are located in different countries;
and whereas the administration has chosen arbitration as a way of settlement of the dispute, in accordance with ISTAC Arbitration Rules, the undermentioned text shall be added to the contract:
Any dispute which may arise from the execution of the contract and its attachments (save for the circumstances where the administration has the discretion to act and decide upon on its own according to the contract) shall be finally settled in accordance with ISTAC arbitration rules. Place of arbitration is ………… (Place of administration or İstanbul shall be written). Arbitration language is …………. Arbitration tribunal shall consist of 3 arbitrators. (Law of a country which the parties agree upon to be applied to the dispute shall be specified here) ……… law shall be applied to the merits of the dispute.
In cases where either the administration or the contractor applies to arbitration, the contractor shall continue to works and shall comply with the decisions given by the administration, related with the execution of the work.”
b. In case the administration has chosen the international arbitration as a way of resolution in accordance with the provisions of International Arbitrational Code Nr. 4686, the undermentioned text shall be added to the contract.
Any dispute which may arise from the execution of the contract and its attachments (save for the circumstances where the administration has the discretion to act and decide upon on its own according to the contract) shall be finally settled in accordance with International Arbitration Code Nr. 4686 dated 21.06.2001.
Arbitration tribunal shall consist of 3 arbitrators. Each party shall choose one arbitrator and these two arbitrators shall choose the third arbitrator within thirty days. In the cases where one of the parties did not choose his/her own arbitrator within thirty days, upon other party’s request in this respect which has reached to him/her via notary public or in case two arbitrators selected by the parties cannot designate the third arbitrator within the thirty days from the date they have been elected; second arbitrator or the third arbitrator shall be chosen by Civil Court of First Instance of …………… (Place of the office of Administration shall be written). Third arbitrator shall be assigned as the chairman of the arbitration tribunal.
The substantive law provisions to be applied to the merits of the dispute shall be ……………. (Law of the country which the parties agree upon to be applied to the dispute shall be specified here). The language of arbitration is ………. The place of arbitration is …………. (place of office of the administration or İstanbul shall be written here). ) Civil Court of First Instance of …………. (place of office of the administration shall be written here) is entitled for works related to arbitration as specified to be done by the courts in the International Arbitration Code Nr.4686.
In cases where either the administration or the contractor applies to arbitration, the contractor shall continue to works and shall comply with the decisions given by the administration, related with the execution of the work.”
Enforcement
These regulations shall enter into force following 20 days from their publication date, which is 19 January 2018.