Originally from Arbitration Law of Turkey: Practice and Procedure

CHAPTER 22

CONSTRUCTION ARBITRATION INVOLVING TURKEY

The general trend towards the globalization of markets, with the elimination of trade barriers, the adoption of international procedures and performance standards and the opening of private and public national markets to foreign competition, increases the feasibility of exporting construction services to foreign markets.

Construction disputes are often factually and legally rather complex. The construction disputes involve complex technical questions and projects with multiple actors and for this reason disputes in the field of construction can pose specific challenges to arbitration practitioners.

22.1 THE TURKISH CONSTRUCTION INDUSTRY

The Turkish Construction and Contracting Industry is one of the leading industries in Turkey. At the time of publishing, the Turkish construction/contracting industry was ranked to be the world's 3rd largest, behind those of the USA and China by the Engineering News Report1.

On the other hand, the globalization strategy becomes significant among construction companies as shifts in technology, consumer needs, and government policy or country infrastructure create major differences in the competitive position among firms from different nations. The motivational background behind the globalization of construction activities in different countries may be explained both by a saturation of home construction demand in advanced industrial countries, or the survival strategy of contractors in newly industrialized countries due to instability in their own domestic construction market. Construction companies in advanced industrial countries play an important role in the global construction market as providers of construction services where a higher level of technology and know-how are required.