Successful management of both local and international construction projects from start to finish is of great importance. In order to achieve the highest success in contract management in the projects we are involved in, we have been serving together with Arıkan Partners, one of the leading and most successful law firms in Turkey, as a strategic partner since 2015.
Arıkan Partners successfully provides legal consultancy services in national and international construction and real estate projects. Since its establishment, the company has been involved in legal consulting services, contract management, claim management and arbitration cases in construction and real estate projects in countries such as Algeria, Jordan, Russia, Saudi Arabia, Libya, Georgia and Nigeria, as well as in Turkey.
Arıkan Partners’ arbitration team consists of experienced members who have tried and won arbitrations under all major arbitration institutions, including the International Chamber of Commerce (ICC), the International Centre for Settlement of Investment Disputes (ICSID), the Stockholm Chamber of Commerce (SCC) and the London Court of International Arbitration (LCIA). It also has arbitration experience under the United Nations Commission on International Trade Law (UNCITRAL) and other rules. For arbitrations governed by foreign law, it works closely with the most prestigious international law firms in the relevant countries to provide its clients with the highest level of advice and assistance.
Construction contract management is the process of preparing, executing, monitoring and controlling contracts for the successful completion of a construction project. This process clarifies the rights and obligations of all parties to the project, minimizes disputes and ensures that the project is completed on time and within budget.
Before starting the contract preparation, the project’s requirements, scope, objectives and budget are determined. The appropriate contract type (turnkey, unit price, lump sum, etc.) is selected according to the nature of the project and a draft contract is prepared that includes the scope, durations, costs, quality standards and other technical details of the project.
The parties negotiate on the prepared contract draft and reach an agreement on risk sharing, distribution of responsibilities and warranty terms. The agreed issues are included in the contract and the final contract text is created. After the legal compliance check to be carried out by the lawyers, the contract can be signed and the project can be started.
During the project, the progress of the project, completion percentage and cost status are monitored with the reports to be received from the project management. By being informed about possible deviations, the necessary changes and correction requests are shared with the parties within the scope of the contract.
In order to prevent and resolve disputes that may arise during the contract process, primarily the solution methods specified in the contract, such as negotiation, mediation, and arbitration, are used. If necessary, legal processes may be put into effect.
Construction projects are processes that are prone to disputes due to their complexity and the large number of stakeholders they involve. These disputes may be related to the design, construction, costs, schedule or quality standards of the project. Effectively managing disputes is critical to completing the project on time and within budget. In this context, alternative dispute resolution methods such as arbitration help resolve disputes quickly and effectively.
Dispute Resolution is carried out through the following methods:
- Negotiation: This is the simplest and most direct method by which parties attempt to resolve their disputes among themselves. Although negotiation provides a quick and low-cost solution, the parties must be open to compromise.
- Mediation: This is a method by which the parties attempt to resolve their disputes under the guidance of a neutral third party (mediator). The mediator does not offer solutions to the parties, but helps the parties to find their own solutions.
- Arbitration: This is a method by which the parties resolve their disputes through an arbitration board, which is a non-judicial court. Arbitration, a frequently preferred solution method in construction projects, is faster, more flexible and generally less costly than the courts.
- Litigation: This is the method used as a last resort in resolving disputes. The parties try to resolve their disputes in court by resorting to litigation. It is the last preferred method in construction projects because the litigation process is long, costly and often complex.
