Price in work contract

Price in work contract

Turkish Legal Insights & Judicial Precedents

Price in work contract

Price in work contract

Legal Notice

This article is an English translation of Turkish jurisprudence provided for international clients and informational reference. Under Turkish procedural and substantive law, official judicial proceedings, statutory interpretations, and court verdicts are governed exclusively by the authentic Turkish legal text.

According to Article 470 of the Turkish Code of Obligations, the most basic obligation of the employer in work contracts is the obligation to pay the price. Again, in a work contract, the cost of work is a mandatory element of the contract. Therefore, the price must be agreed upon in work contracts. However, it is also possible that the parties have not agreed on the price.

FAILURE TO SPECIFY THE PRICE IN THE CONTRACT

If the price is not agreed in the work contract, the contract will not become invalid. If the price is not clearly agreed, the work contract will remain valid.

If the price is not written in the contract or the parties cannot agree on the price, the cost of the work will be calculated by an expert. When conducting an examination, the expert will take as a basis the market value of the year in which the work was made.

APPROXIMATE PRICE

In some cases, the parties may have difficulty determining the cost of the work. In such cases, it is possible to determine the price approximately.

TBK 481: ''If the price of the work is not determined in advance or is determined approximately, the price is determined by looking at the value of the work at the place and time it was made and the contractor's expenses.''

''... no evidence has been provided that the price of the work has been agreed upon between the parties. If the work price has not been determined in accordance with Article 481 of the Turkish Code of Obligations, which was in force at the time the agreement was made, the calculation must be made according to the local market rate in the year in which it is made. No evidence has been presented that there was such an agreement between the plaintiff and the defendants. On the other hand, while calculating by the court, the result was reached by multiplying the unit price by 10,000 units. However, the plaintiff claimed that the number 10,000 stated in the invoice was not a piece but a set, which corresponded to 40,000 pieces. In the evaluation made by the court on this issue, the calculation was made because the total number of Lego units delivered in 2 invoices was accepted as 10,000, but since it is stated in the invoices that the delivered goods are a set, this issue must be evaluated. Since the cost of the work is also in dispute, first of all, considering that there is no price agreement between the parties, a new report should be obtained by asking the expert expert on the subject from the relevant chambers of commerce and joining the previous delegation, and since the products delivered in the invoice are a set, it should be determined how many units they correspond to, the unit price should be determined with the local free market market, the total deserved work price should be calculated and a decision should be made in accordance with the result to be obtained by deducting the amount paid and agreed upon by the parties. HD. K. 2018/3901

LUMPSUM PRICE

In Article 480 of the Turkish Code of Obligations, if the lump sum price is determined as a lump sum, the contractor is obliged to produce the work for that price. "Even if the work requires more labor and expense than anticipated, the contractor cannot request an increase in the determined price." Lump sum is a type of fee in which the price to be paid by the employer is determined in advance and definitively by the parties when the contract is established. If the price is determined as a lump sum, there is no obligation to pay more than this price for the work done. Likewise, even if the work is completed by the contractor at a cost less than the agreed price, the owner cannot request a reduction in the price. As a matter of fact, in a decision dated 16.1.2020 of the 15th Civil Chamber of the Supreme Court of Appeals, "Although it has been understood that some payments have not been made to the plaintiff subcontractor due to the defendant subcontractor not being able to collect from the out-of-case contractor and business owner, since the price in the contract has been decided as a turnkey lump sum, the subcontractor-contractor is obliged to carry out the work with the agreed price, and in the absence of adaptation conditions, it is not possible to request the price to be increased or adapted, and the employer cannot It is not possible for him to ask for the price to be reduced, even if it requires less effort and expense than he has to pay the agreed lump sum.'' He said.

However, if circumstances that were not foreseen at the beginning or that were foreseen but not taken into account by the parties prevent or make it extremely difficult to carry out the work with the lump sum determined by the parties, the contractor has the right to ask the judge to adapt the contract to new conditions, and if this is not possible or cannot be expected from the other party, the contractor has the right to withdraw from the contract. The contractor may only exercise his right of termination when required by the rules of integrity.

A- TOTAL LUMPS COST

The total and final determination in the contract for the entire agreed work is defined as the lump sum price.

B- UNIT PRICE

If the work to be done is shown in units and the fee to be paid is separate for each unit, unit price will be mentioned. The units of work are meters, square metres, cubic metres, etc. It is shown as . Then, the total cost is calculated by multiplying the price by the work done.

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