How to Choose a Contractor for Urban Transformation in Turkey (2026 Checklist)
- Choose the contractor after the risky-building report, the owners' decision and a feasibility study — the order matters.
- The ministry contractor licence, completed and occupancy-approved references, and financial strength are the first three filters.
- Since 9 November 2024, projects under Law No. 6306 need building completion insurance or another guarantee before the building permit.
- The flat-for-land contract should be notarised and must state the delivery date, delay penalties and staged title transfer.
For the owners of an ageing building, urban transformation (kentsel dönüşüm) is usually the biggest property decision of their lives — and the single most important variable is the choice of contractor. ÇET Yapı has been delivering residential, school and urban transformation projects in Istanbul since 1993. Below are the most common mistakes owners make and a checklist you can use.
The right order: the contractor comes in the middle, not at the start
The most frequent mistake is negotiating with contractors before the building has been designated as risky or before the owners agree on a common vision. A sound process looks like this:
- Risky-building assessment by a ministry-licensed institution, annotated on the title deed.
- Owners' decision: under Law No. 6306, decisions on risky buildings are taken by a simple majority of the shares (two-thirds before Law No. 7471 of November 2023; see our article on the majority decision).
- Zoning and feasibility: confirm the zoning status, floor-area ratio and approximate buildable area. This makes offers comparable.
- Contractor selection and contract
- Guarantee / building completion insurance, building inspection firm and building permit
- Construction, occupancy permit and title distribution
Offers collected without a feasibility study do not price the same thing: one may offer 120 m² gross flats, another 95 m² net. Define what you are buying first.
A 12-point checklist for choosing a contractor
Legal eligibility
- Contractor licence: building contractors in Turkey are registered with the Ministry of Environment, Urbanisation and Climate Change and hold a licence number. Ask for the licence group, which reflects the size of work the firm may undertake.
- Tax and social security debts: a firm with arrears is more likely to run out of cash mid-construction. Ask for documentary proof.
- Trade registry and company history: check how long the firm has traded under the same name; be wary of frequent name changes.
Experience and references
- Completed, occupancy-approved projects: projects "under construction" are not references. Ask for addresses of delivered buildings and visit them.
- Comparable scale: an 8-flat block and a 40-unit complex need different organisations. For example, ÇET Yapı's İnsaya Residences in Merter — 40 homes and 2 shops — were completed in 25 months.
- Talk to previous residents: was the delivery date met, were snags fixed?
Financial strength and guarantees
- Building completion insurance or guarantee: under the provision added to Law No. 6306 by Law No. 7471, the contractor must take out building completion insurance or provide another prescribed guarantee before obtaining the building permit for projects in urban transformation areas and parcels. The rule has applied since 9 November 2024.
- Financing plan: how much is funded by equity and how much by off-plan sales? A plan that depends on sales means delays when the market slows.
Technical quality
- Specification schedule: joinery, insulation, lifts, kitchen and bathroom fittings should be annexed to the contract with brands and grades.
- Design team: who prepares the architectural, structural and MEP designs, and who will be the site manager?
- Seismic compliance: the new building must be designed to the 2018 Turkish Building Earthquake Code, based on a geotechnical survey.
Clauses the contract must include
Because it involves the transfer of real estate, a flat-for-land construction contract should be executed before a notary. At a minimum it should include:
| Clause | Why it matters |
|---|---|
| Delivery period and start date | So that delay can be measured |
| Delay compensation / rent | Puts the cost of delay on the contractor |
| Flat allocation list | Everyone knows which unit is theirs from day one |
| Staged title transfer | Links shares transferred to the contractor to construction progress |
| Type of guarantee | Building completion insurance, bank letter of guarantee, etc. |
| Taxes, fees and charges | Clear ownership of later costs |
| Termination and penalty | The scenario where works stop |
How to compare offers
Do not compare offers only by "percentage of flats". Put offers prepared on the same feasibility study into one table covering total net area, delivery period, specification grade, guarantee type and the firm's track record. A few points more in the sharing ratio do not compensate for a delivery that is two years late.
The ÇET Yapı approach
In its real estate development and contracting projects, ÇET Yapı places the delivery schedule at the centre of the contract. Our Yeşilköy Ateş Residence project was completed in 20 months and handed over on 3 November 2016; İnsaya Residences in Merter were completed in 25 months. Contact us to assess your urban transformation project together from the feasibility stage.
This article is for general information only; please obtain legal advice before signing a contract.
Frequently Asked Questions
Who chooses the contractor in an urban transformation project?
Once a building is officially designated as risky, the owners decide by a simple majority of the shares. The decision should also set out the main terms of the contract.
How can I verify a contractor's licence in Turkey?
Building contractors in Turkey must hold a licence number issued by the Ministry of Environment, Urbanisation and Climate Change. Ask for the number and licence group and verify them with the ministry's records.
Is building completion insurance mandatory in urban transformation?
Yes. Under the amendment introduced by Law No. 7471, for areas and parcels within the scope of Law No. 6306 the contractor must take out building completion insurance or provide another prescribed guarantee before obtaining the building permit. The rule took effect on 9 November 2024.
What share of the flats should the owners get?
The law does not fix the ratio; it is negotiated according to location, zoning rights, construction cost and market conditions. Compare offers only on the basis of the same project and the same specification.
What happens if the contractor abandons the project?
If there is building completion insurance or another guarantee, that protection applies. That is why the contract must define the guarantee, link title transfers to construction progress and set out termination terms.
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