What is a Consortium Agreement?
CONSORTIUM AGREEMENT
Article 1 – Parties
(Information for Company 1 and Company 2 is entered here. They will hereafter be referred to collectively as "Partners.")
Article 2 – Subject
The subject of this agreement is the submission of a bid by the parties as a consortium for the ………… Project, tendered by the ………… General Directorate of the ………… Ministry of the Republic of Turkey , and the determination of the rights and obligations of the parties for the execution of the Tender Contract if the bid is accepted.
Article 3 – Definitions
(Your definitions will be preserved; additional ones may be added:)
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Management Committee: The decision-making body of the consortium.
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Project Management Team: The team responsible for technical and commercial coordination.
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Share Ratio: The ratio of the work obligation undertaken by each party to the total contract price.
Article 4 – Legal Nature of the Consortium
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The consortium is not a general partnership; each partner is responsible only for the work they have undertaken.
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The consortium does not have legal personality.
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All official procedures on behalf of the consortium will be conducted through the Lead Partner.
📌 Supreme Court 15th Civil Chamber, Case No. 2016/2224, Decision No. 2018/1234: In consortia, the responsibilities of the parties are divisible; each partner's liability is limited to their own commitment.
Article 5 – Scope of Work
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The items of work to be undertaken by the parties are detailed in Annex 1
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Each partner is responsible for ensuring their own work is completed on time and in full.
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If one of the partners fails to fulfill their obligation, and liability arises before the Administration, that partner will be liable for the resulting damage.
Article 6 – Leading Partner
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Company 1 has been designated as the Lead Partner.
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The responsibilities of the Lead Partner:
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Correspondence with the administration,
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Project coordination,
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Implementation of the Management Committee's decisions.
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The Lead Partner may not incur debt on behalf of the other partner without the written consent of that partner.
Article 7 – Management Committee
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The Management Committee consists of representatives from both partners.
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Decisions are made by consensus. If consensus cannot be reached, the dispute is referred to arbitration.
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The Management Committee approves the work program and financial plan.
Article 8 – Financial Provisions
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The consortium fee will be shared among the parties according to their respective scopes of work.
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Each partner is responsible for providing their share of the financing.
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The Leading Partner may deduct a certain percentage (e.g., 1%) from the partners' earnings as administrative expenses
Article 9 – Guarantees and Insurances
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The provisional and final guarantees required for the tender shall be provided by the parties in proportion to their share.
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Insurance policies related to the project (construction all-risk, employer's liability, third-party liability, etc.) are taken out in the name of the consortium.
Article 10 – Confidentiality
The parties shall keep confidential all commercial and technical information obtained during the consortium's existence.
Article 11 – Duration and Termination of the Agreement
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This contract shall remain in effect until all commitments of the Tender Contract are fulfilled.
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If one partner fails to fulfill their obligation, the other partner may terminate the contract and claim compensation.
Article 12 – Resolution of Disputes
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The parties will first engage in negotiations.
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If a solution cannot be reached, the Istanbul (Central) Courts and Enforcement Offices have jurisdiction.
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Arbitration clauses may be added to international tenders (ICC, ISTAC, etc.).
Article 13 – Entry into force
This agreement was signed on ../../…. and shall enter into force upon signature by the parties.
Company 1 (Signature/Stamp)
Company 2 (Signature/Stamp)
