CONSTRUCTION LAW
The legal management of construction projects actually requires the application of knowledge and experience acquired in various relevant areas of law, extending beyond the narrow confines of construction law. Additionally, having a comprehensive understanding of the legal system and practices of the country in which the construction project will take place is essential.
Working with legal professionals from the outset of construction projects holds significant importance. Activities such as overseeing the administrative provisions of tender specifications, verifying and signing articles of association, and executing the constituent agreement for the partnership that will bring the project to life are critical aspects that need to be addressed from the project's inception. These elements have the potential to impact the project's profitability, success, and overall feasibility. In this context, our goal is to provide thorough assistance to the companies we collaborate with, spanning from the initial receipt of administrative specifications to the handling of guarantee letters.
Outlined below are some of the legal services offered by Pantheon Law Firm:
Control of the Administrative Specifications and Tender Agreement:
Negotiation with the employer/administration during the assessment of administrative specifications and the tender contract is feasible when the stipulations permitted and mandated by law are understood. For example, when considering the inclusion of a provision for price unit escalation, it is crucial to ascertain the legality and acceptance of such a provision in the local industry practices. Leveraging our experience in scrutinizing tender contracts, our law firm aims to enlighten clients regarding the legal and economic viability of these contracts, taking potential challenges and opportunities into account.
Drafting and/or Review of Partnership Agreements:
Forming partnerships within the context of construction projects that involve multiple collaborating companies represents a pivotal phase in the project's lifecycle. The contract signed at the project's outset demands meticulous drafting. This involves defining the responsibilities of each company, addressing potential variations in work scope and pricing, outlining procedures for tackling emerging issues, establishing profit and loss distribution, delineating penalty sharing arrangements, specifying partnership termination conditions, determining leadership roles, clarifying the rights and responsibilities of the lead company, addressing the removal of non-performing partners, and establishing mechanisms for dispute resolution. Any deficiencies in the drafting of a partnership agreement could lead to operational stagnation and irrevocable harm.
Our law firm boasts substantial expertise in crafting and preparing joint venture and consortium agreements in both Turkish and French.
Drafting General Assembly and Board of Directors Resolutions in the Contractual Language:
Ensuring that the entities stipulated in partnership agreements for construction projects fulfill their designated roles and responsibilities is of paramount importance. Certain regulations, although they may appear as redundant formalities, assume significant relevance when challenges surface during project execution or within partner interactions.
Our law firm furnishes legal services to clients, delivering General Assembly and Board of Directors resolutions in accordance with the contractual language and legal framework. This approach reflects the principles of preventive law, preserving clients' interests.
Contractual Correspondence:
Especially when operating within the framework of construction projects executed in foreign countries, meticulous correspondence practices are imperative from the project's outset. This diligence should be upheld even if the potential for claims or disputes is not anticipated initially. Failing to initiate written notifications to the employer, partner, or subcontractors at the project's inception could hinder the preparation of documentation needed to substantiate claims when issues arise. Furthermore, every written communication could imply to the other party the possibility of the dispute escalating to a legal battle. The initiation of written notifications by a company that had not previously engaged in such correspondence can be interpreted as a provocative action and may lead to a counter-response.
At Pantheon Law Office, we have been offering extensive support to contracting companies for many years, encompassing the drafting of correspondences directed at the employer/administration, overseeing these correspondences, preparing template texts, and responding to texts received from the employer/administration.
Claims, Contract Amendments, and Addenda
Handling claims, contract amendments, and addenda stands as one of the most critical legal challenges for companies engaged in the construction industry. Initiating a claim necessitates a thorough analysis of all contractual documents, including the Administrative Specification, Technical Specification, and General Provisions. Simultaneously, a solid grasp of the relevant legislation (Public Procurement Law, Procedural Law, Civil Law, Law of Obligations) is indispensable to adopt an appropriate stance tailored to the project's unique circumstances.
The ability to present a claim effectively, securing the Administration's approval either through consensus or legal channels, is of paramount significance. Moreover, in scenarios where an accepted claim is subject to an addendum or amendment, a meticulous review of these modifications becomes essential. While accommodating specific requests, prudent measures should be taken to safeguard other elements that might prove pivotal in the future, thereby preventing any potential loss of rights.
As Pantheon Law Firm, we have been rendering legal consultancy services for numerous years to Turkey's leading construction companies, focusing primarily on additional works, price adjustments, and the precise drafting and monitoring of timely amendments.
Drafting, Review, and Management of Subcontracts
In the context of crafting contracts for construction projects, a fundamental understanding of the work to be undertaken is indispensable, mirroring the requirement for the drafting of various contract types. Our law firm boasts extensive experience in contract drafting across various stages of projects, spanning tunnels, roads, dams, art structures, and including study and control contracts. Furthermore, our firm is well-versed in the control and management of such contracts. French contracts are meticulously drafted by our lawyers who are alumni of the French Sorbonne University Faculty of Law. This meticulous process ensures that the contract aligns harmoniously with French contractual practices and the pertinent legal framework governing the contract's execution.
Monitoring Bank Letters of Guarantee
Bank guarantee letters exhibit distinct characteristics. The primary divergence lies in whether a letter of guarantee guarantees immediate payment without delay upon the initial written request, or whether it only engages when a contractual defect is invoked. This differentiation is typically observed in letters of guarantee subject to ICC URDG 758, with the question of whether Article 15 applies playing a pivotal role. It is imperative for clients operating within the construction sector to strategically tailor the scope of the letter of guarantee according to their specific roles.
Beyond these considerations, certain letters may be structured as surety bonds while others may function as undertakings. In these cases, a meticulous assessment of the scope and contents of these letters assumes heightened importance.
Supervision of Insurance Policies, Notification Tracking, and Reimbursements
Our law firm is equipped with the expertise to comprehensively assess coverage, guarantees, exceptions, and exemptions across all insurance policies requisite for construction projects. Moreover, in the context of significant disasters, our firm's experience extends to effectively managing notifications and ensuing reimbursements.
Pantheon Law Firm has played a pivotal role in securing extensive insurance coverage for numerous major projects across Turkey, Algeria, and Morocco, ensuring the most suitable premium rates and robust warranties. The firm has effectively managed numerous high-value damage notifications and the subsequent reimbursement processes.