British developers and institutional investors moving into Turkish construction and refurbishment projects often assume that warranty and defects liability frameworks mirror the JCT or NEC conventions they know at home. They do not. Türkiye's system blends civil code obligations, a distinct statutory structural liability period, and contract-specific defects notification mechanics that can catch UK parties off guard if not addressed at the tender stage.
Statutory liability under the Turkish Civil Code
Under Turkish law, contractors and, in many cases, structural engineers and architects carry statutory liability for defects in load-bearing and structural elements for a period that can extend well beyond the contractual defects liability period typically seen in UK forms. This liability, rooted in the Code of Obligations, attaches to the building itself rather than purely to the contract between the parties, meaning it can survive a change of ownership. For a UK investor acquiring a completed asset or funding a development for eventual sale, this structural liability regime is a material point of due diligence, not a boilerplate clause to skim.
Practical implication : buyers should request the full construction file, including as-built drawings, structural calculations, and occupancy permits (iskan), before closing, since gaps in this documentation weaken the ability to pursue a claim later.
Contractual defects liability periods
Separate from statutory structural liability, most Turkish construction contracts include a negotiated defects liability period, commonly between twelve and twenty-four months from provisional acceptance. Where FIDIC-based forms are used, which is increasingly common on larger commercial and mixed-use schemes involving international lenders, the mechanics will feel familiar to UK teams. Where local standard forms are used instead, the defects notification process is often less prescriptive, with fewer defined milestones and looser retention release triggers. UK parties should not assume retention monies are automatically held in a segregated account; this needs to be negotiated explicitly.
Retention and performance security
Performance bonds and retention practices in Türkiye tend to follow local banking norms rather than the London market conventions UK sponsors expect. Letters of guarantee issued by Turkish banks are the standard security instrument, and their wording, expiry mechanics, and call conditions differ from an on-demand bond under English law. It is worth having Turkish counsel review the guarantee wording alongside the main contract, since a mismatch between the defects liability period and the guarantee's validity date is one of the more common gaps we see in cross-border deals.
Insurance and third-party liability
Contractors' all risks insurance and professional indemnity cover are available in the Turkish market but are not always mandated by default; they should be specified as contractual conditions precedent to mobilisation. UK investors accustomed to CAR and PI cover being a near-automatic feature of any reputable contractor's package should confirm coverage limits, deductibles, and whether the policy is denominated in Turkish lira or a hard currency, since claims settled in lira carry currency exposure over a multi-year defects period.
Dispute resolution considerations
Where contracts are silent or ambiguous on governing law and forum, disputes over defects and warranty claims default to Turkish courts and Turkish substantive law. Many UK sponsors on larger projects negotiate for ICC or other institutional arbitration seated outside Türkiye, paired with a clear choice of law clause. This is a negotiation point worth prioritising early, since retrofitting dispute resolution mechanics after a defect has already surfaced is far harder than agreeing them at contract signature.
Working with local advisory support
Because structural liability, contractual defects periods, and financial security instruments operate on different legal tracks in Türkiye, UK investors are well served by engaging advisers who can coordinate these three strands from the outset, rather than treating warranty and defects liability as a single boilerplate clause. A construction-specific legal and technical review before signing, not after handover, remains the most effective way to avoid disputes that are costly and slow to resolve once a project is complete.
Eurasia Experts works with UK developers, investors, and lenders on construction risk allocation, contractor due diligence, and defects liability structuring across Turkish real estate and infrastructure projects, helping clients align local practice with the standards they expect at home.