Covid-19 Pandemic’s Impact On Public Procurement Contracts
Circular No. 2020/5 (“Circular”) regarding COVID-19 pandemic’s impact on public procurements has been published on the Official Gazette numbered 31087 and dated 02.04.2020. Circular provides the following regulations within the scope of Public Procurement Law No. 4734 (“Public Procurement Law”) in order to prevent the pandemic and reduce its adverse effects across the country:
- Within the scope of the contracts entered into upon the public procurements concluded subject to Public Procurement Law (including the exceptions), contractors may submit their applications to the relevant contracting authorities in relation to their claims involving permanent, temporary, partial, entire impossibilities preventing the works under such contracts due to COVID-19 pandemic. Contractors must also submit documentation proving such impossibility in performing the works under the relevant contracts together with their applications.
- Relevant authorities shall evaluate the applications of the contractors within the scope of Public Procurement Law Article 10 and other relevant articles. Decisions regarding the applications shall not be concluded by the relevant authorities without obtaining determination of the Ministry of Treasury and Finance on each application.
- Having evaluated the applications by the contractors; relevant authority may grant the contractor an extension of time or may terminate the contract provided that the following conditions are completely fulfilled: (i) the impossibility has not occured due to reasons attributable to the contractor (ii) the impossibility prevents the contractor from performing its obligations under the contract, and (iii) the contractor cannot eliminate the impossibility in performing the works.
@ Sena Güngördü | Kesikli Law Firm