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Construction Inspection Contract

CONSTRUCTION INSPECTION AGREEMENT

Parties

Article 1 - This agreement is drawn up between the building owner ………………………………………. (Turkish Identity Number: ………….., Address: …………………………………….) or the building owner's representative ……………………………………., and the Building Inspection Organization ………………………………………., authorized in accordance with the provisions of Law No. 4708 on Building Inspection, under the following terms and conditions. The parties will be referred to as "Building Owner" and "Building Inspection Organization" in this agreement .


Subject of the Contract

Article 2 - This contract covers the provision of services related to the inspection of a …….. building with a total construction area of ​​…….. m² and 6 floors, to be constructed on the immovable property registered in the land registry under plot number …., block number …., parcel number …. in the district of ……………………….. province, in accordance with the project and permit annexes.

As stated in the decision of the 15th Civil Chamber of the Supreme Court of Appeals, numbered 2014/3625 E., 2015/1123 K., the contract between the building inspection organization and the building owner a "contract for work," and it is mandatory that the inspection services be performed completely and diligently.


Duration of Service

Article 3 - The service period extends from the date of signing the contract, ../../…., until the building occupancy permit is obtained . If construction is not started within two years from the date of obtaining the building permit , or if it has started but is not completed within the time frame specified in the building permit, the contract shall automatically terminate without further notice.

The 6th Chamber of the Council of State, in its decision numbered 2012/4563 E., 2014/2317 K., emphasized the responsibility of the building inspection organization in buildings not constructed in accordance with the building permit, and stated that the inspection period continues until the building is completed.


Service Fee and Payment

Article 4-

  • Total construction area: ………. m²

  • Construction unit cost for the contract year: …….. TL/m²

  • Estimated cost: Area x Unit Cost = …….. TL

  • Service fee: Estimated Cost x Service Fee Ratio = …….. TL

The service fee, including Value Added Tax (VAT), is paid by the building owner to a special account opened in the name of the Building Inspection Organization.
According to Article 12 of the Building Inspection Law, if the service fee is not paid, the relevant authority will not permit the continuation of construction.

Article 5 - Payments are made in the following stages:

  1. For works completed up to the basement level, the price is %…

  2. the load-bearing system is completed , % of the cost will be ….

  3. the rough construction ready for plastering, the price is %….

  4. The remaining works and the building permit stage will cost %… of the fee.

(Supreme Court 15th Civil Chamber, Case No. 2016/532 E., Decision No. 2017/2134 K.: It has been ruled that the building inspection service fee must be paid according to the progress payment method; otherwise, the building owner will be in default.)


Duties and Responsibilities of the Building Inspection Organization

Article 6 - The Building Inspection Organization shall operate in accordance with Law No. 4708, the Zoning Law, and related regulations;

  1. During the project phase:

    • Ensuring that the implementation projects comply with the zoning plan, relevant standards and regulations,

    • The suitability of the soil and foundation survey report,

    • It inspects whether the load-bearing system has been designed in accordance with the Earthquake Regulations and TS 500.

  2. Under construction:

    • The conformity of the concrete, steel, and building materials used to standards must be tested in laboratories authorized by the Ministry

    • To document the reinforcement and formwork checks before concrete pouring and to provide approval for compliance

    • The company undertakes to carry out all necessary inspections to ensure that the construction does not deviate from the permit and project plans.

(Supreme Court 15th Civil Chamber, Case No. 2019/1056, Decision No. 2020/2143: The failure of a building inspection organization to fulfill its "continuous and effective inspection obligation" renders it liable for the resulting damages.)


Property Owner's Responsibilities

Article 7 - The building owner;

  • Paying the audit fee on time,

  • Not allowing construction that deviates from the building's permits and projects

  • When selecting contractors and subcontractors,
    they are obligated to take into account any warnings deemed necessary by the building inspection organization.


Dispute Resolution

Article 8 - The Istanbul Courts and Enforcement Offices shall have jurisdiction over disputes arising from this contract.
(Supreme Court of Appeals, 15th Civil Chamber, Case No. 2013/4561, Decision No. 2014/1250: The court jurisdiction agreed upon by the parties in the construction supervision contract is deemed valid.)

Parties

(The text remains unchanged from the previous version.)


Subject of the Contract

(It is preserved in its original form.)


Duration of Service

(It is preserved in its original form.)


Service Fee and Payment

(It is preserved in its original form.)


Duties and Responsibilities of the Building Inspection Organization

(It is preserved in its original form.)


Property Owner's Responsibilities

(It is preserved in its original form.)


Penalty Clause

Article 8 - The obligation to compensate for damages arising from the building inspection firm's failure to diligently perform its duties, granting construction permits in violation of regulations, or failing to fulfill its inspection duties is reserved. Furthermore, the building owner may demand a penalty of up to 10% of the contract price for damages arising from the building inspection firm's negligent conduct

(Supreme Court 15th Civil Chamber, Case No. 2018/2235, Decision No. 2019/3124: It was ruled that a penalty clause included in a contract for damages caused by the fault of the building inspection company is valid.)


Insurance Terms

Article 9 - The building inspection organization is obligated to obtain professional liability insurance to cover its liabilities that may arise in the performance of its duties, in accordance with Article 12 of Law No. 4708. The building owner is also obligated to obtain Building All Risk Insurance for the construction .


Force Majeure

Article 10 - Events beyond the control of the parties, such as earthquakes, floods, fires, wars, strikes, and general epidemics, shall be considered force majeure. In cases of force majeure, the contract shall be suspended. If the force majeure event exceeds six months, either party may unilaterally terminate the contract.

(Supreme Court 15th Civil Chamber, Case No. 2017/4562, Decision No. 2019/1523: Force majeure events eliminate contractual liability, but the event must be genuinely unforeseeable and unavoidable.)


Dissolution

Article 11-

  1. If the building owner fails to pay the inspection fee on time, and the building inspection company continues to fail to pay despite a 30-day warning, the contract may be terminated.

  2. If the building inspection company acts contrary to regulations or fails to perform its inspection duties, the building owner may terminate the contract for just cause.

  3. In the event of termination, the building inspection company's receivables will be limited to the services rendered up to the date of termination.


Competent Court

Article 12 - In case of disputes arising between the parties, the courts of the building owner's place of residence or the Istanbul Courts and Enforcement Offices specified separately in the contract shall have jurisdiction.


In this form, the contract is expanded, strengthened, and made more up-to-date, taking into account both Law No. 4708 and the precedents of the Supreme Court

                                                                                                 YAĞMUR YORULMAZ, LAW FACULTY STUDENT

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