THE NATURE OF CONSTRUCTION CONTRACTS
 
1. Exclusive Structure of Construction Projects 
 
23
2. Particularities of Construction Contracts 
 
24
2.1. Custom–Made Projects 
 
24
2.4. Construction Site 
 
27
2.5. Financial Dimension 
 
27
2.6. International Scope 
 
29
2.7. Voluminous Documentation 
 
30
2.7.1. Plant Deion/Specification 
 
31
2.7.3. Bill of Quantities (BoQ) 
 
32
2.7.5. Payment Schedule / Milestones 
 
34
2.8. Need for Flexibility and Reformation 
 
35
3. Parties of a Construction Project 
 
36
3.1. Employer (Owner–Client–Customer) 
 
36
3.2. Contractor(Entrepreneur) 
 
37
3.4. Engineer / Architect 
 
39
3.5. Quantity Surveyor (Cost Consultant/Engineer) 
 
40
4. Obligations of Parties 
 
41
4.1. Contractor’s Obligations 
 
41
4.1.1. Execution of the Work 
 
41
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
5. Types of Construction Contracts 
 
48
5.1. Build–OnlyDesign–Bid–Build 
 
48
5.2. Turn–KeyDesign and Build (DB) 
 
49
5.3. Engineering, Procurement, and Construction (EPC) 
 
50
5.4. Build, Operate, and Transfer (BOT) 
 
51
5.5. Construction Management (CM) 
 
51
6. Place in Swiss and Turkish Legal System 
 
52
7. The Integral Part of Construction Contracts: Standard Rules 
 
57
7.1.2. FIDIC Yellow Book 
 
61
7.1.3. FIDIC Silver Book 
 
62
POTENTIAL DISPUTES AND FORCE MAJEURE & HARDSHIP
 
1. Variations / Changes 
 
65
1.1. Possible Variation Cases 
 
65
1.2. The Scope of Variations 
 
66
1.3. The Role of Engineer in Variations 
 
68
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
2.4. Performance Certificate 
 
74
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
4.1. Differences Arising From Impossibility Types 
 
92
4.2. Perspective of FIDIC 
 
93
4.2.1. Consequences of Exceptional Events 
 
95
6. Force Majeure and Hardship Scenarios With Current Issues Through The
 
Example of A NPP Project in Turkey 
 
98
6.3. Sanctions and Embargos 
 
103
6.4. InflationFluctuations 
 
104
7.1. Employer’s Termination 
 
106
7.2. Contractor’s Termination and Suspension 
 
108
DISPUTES RESOLUTION METHODS AND MULTI–TIER CLAUSES
 
1. Conciliation and Mediation 
 
110
3.1. Features and Advantages 
 
115
3.3. Ad Hoc vs Institutional Arbitration 
 
118
4. Multi–Tier Clauses 
 
119