Discover the legal remedies available for construction defects in solar and wind energy projects in Turkey. This 2026 legal guide explains EPC contractor liability, hidden defects, warranty claims, expert reports, compensation, EMRA compliance, and dispute resolution for foreign investors.

Turkey has become one of the leading renewable energy markets in Europe, attracting billions of dollars in foreign investment in solar power plants (GES), wind farms (RES), battery energy storage systems (BESS), hybrid renewable energy projects, and utility-scale electricity generation facilities. While these projects offer long-term investment opportunities, construction defects remain one of the most common causes of disputes between project owners, EPC contractors, equipment manufacturers, insurers, and lenders.

Construction defects may reduce electricity production, delay the Commercial Operation Date (COD), increase maintenance costs, invalidate equipment warranties, trigger EMRA investigations, and significantly reduce the value of the investment. In serious cases, defects may require partial reconstruction of the project or complete replacement of critical equipment.

Foreign investors are not without protection. Turkish law provides several legal remedies against contractors, designers, consultants, suppliers, and other responsible parties, provided that claims are pursued correctly and within the applicable contractual and statutory time limits.

Construction disputes involving renewable energy projects in Turkey are generally governed by:

• Turkish Code of Obligations No. 6098
• Turkish Commercial Code No. 6102
• Electricity Market Law No. 6446
• Renewable Energy Law No. 5346
• EMRA (EPDK) Regulations
• Occupational Health and Safety legislation.
• Environmental legislation.
• International EPC standards (including FIDIC where incorporated).
• Project finance agreements.

This 2026 Updated Legal Guide explains the legal remedies available when construction defects are discovered in Turkish solar and wind energy projects.

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What Is a Construction Defect?

A construction defect is a failure of the completed works to comply with:

• The EPC Contract.
• Technical specifications.
• Approved engineering drawings.
• Applicable Turkish legislation.
• EMRA technical requirements.
• Manufacturer standards.
• Industry best practices.
• Accepted engineering principles.

Defects may appear immediately after completion or several years after commercial operation.

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Why Construction Defects Matter

Defects may result in:

• Reduced electricity generation.
• Safety risks.
• Grid compliance failures.
• Equipment damage.
• Increased maintenance costs.
• Insurance disputes.
• Financing defaults.
• Environmental liabilities.
• Loss of investor confidence.

Large renewable projects may suffer substantial financial losses if defects are not identified and corrected promptly.

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Common Construction Defects in Solar Projects

Frequently encountered problems include:

• Defective solar module installation.
• Improper mounting structures.
• Inverter failures.
• Cable defects.
• DC connection faults.
• Earthing deficiencies.
• Tracker malfunction.
• Water ingress.
• Corrosion.
• Foundation settlement.

These defects often reduce system efficiency and long-term reliability.

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Common Construction Defects in Wind Farms

Typical issues include:

• Turbine foundation defects.
• Blade damage.
• Tower alignment problems.
• Gearbox failures.
• Generator defects.
• Transformer failures.
• SCADA integration problems.
• Crane pad defects.
• Cable installation errors.
• Access road failures.

Many of these issues require specialist engineering analysis.

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1. Defective Design

Construction defects often originate during the design phase.

Examples include:

• Incorrect structural calculations.
• Inadequate geotechnical analysis.
• Improper cable sizing.
• Foundation design errors.
• Wind load miscalculations.
• Drainage deficiencies.

Design consultants may be liable where defects result from professional negligence or contractual breach.

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2. Defective Materials

Liability may arise where:

• Inferior materials are used.
• Non-certified components are installed.
• Equipment differs from contractual specifications.
• Counterfeit products are supplied.

Material defects may affect both contractor liability and manufacturer warranty rights.

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3. Poor Workmanship

Examples include:

• Improper welding.
• Incorrect bolt torque.
• Inadequate concrete quality.
• Poor cable termination.
• Faulty electrical connections.
• Incorrect equipment installation.

Workmanship defects frequently become apparent during commissioning or the first years of operation.

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4. Failure to Meet Technical Specifications

If the completed project does not satisfy contractual specifications regarding:

• Capacity.
• Efficiency.
• Availability.
• Performance.
• Safety.

the project owner may have contractual remedies against the EPC contractor.

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5. Hidden (Latent) Defects

Latent defects are defects that:

• Could not reasonably be discovered during acceptance.
• Become apparent after completion.
• Affect safety or performance.

These claims often require independent expert investigations and careful evidence preservation.

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6. Patent (Visible) Defects

Visible defects generally include:

• Cracked concrete.
• Damaged equipment.
• Misaligned structures.
• Missing components.
• Poor finishing.

Such defects should normally be documented during inspections and acceptance procedures.

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7. Acceptance Testing

Acceptance testing should verify:

• Electrical performance.
• Mechanical integrity.
• Safety systems.
• Grid compliance.
• Output guarantees.
• SCADA functionality.

Acceptance certificates should not be signed without resolving significant outstanding defects.

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8. Performance Guarantee Failures

The contractor may be liable where the facility fails to achieve:

• Guaranteed output.
• Availability guarantees.
• Capacity guarantees.
• Performance ratio.
• Heat rate (where applicable).

These claims often coexist with construction defect claims.

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9. Warranty Claims

The project owner should review:

• EPC warranty.
• Manufacturer warranty.
• Equipment warranty.
• Performance warranty.
• Spare parts warranty.

Failure to follow maintenance procedures may affect warranty coverage.

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10. Contractor Liability

Depending on the contract, the EPC contractor may be responsible for:

• Repair costs.
• Replacement costs.
• Engineering redesign.
• Additional testing.
• Delay damages.
• Completion costs.

Liability limitations should be reviewed carefully.

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11. Consultant Liability

Project consultants may also be liable for:

• Faulty supervision.
• Inadequate inspections.
• Design approval errors.
• Engineering negligence.
• Failure to detect defects.

Professional indemnity insurance should also be examined.

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12. Supplier Liability

Equipment suppliers may be responsible for:

• Manufacturing defects.
• Product defects.
• Warranty breaches.
• Replacement obligations.

Supply contracts should be analyzed separately from the EPC Contract.

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13. Insurance Claims

Potential insurance coverage may include:

• Construction All Risk (CAR).
• Machinery Breakdown Insurance.
• Business Interruption Insurance.
• Professional Indemnity Insurance.
• Product Liability Insurance.

Early notification to insurers is essential.

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14. Expert Reports

Technical disputes almost always require:

• Civil engineering experts.
• Electrical engineers.
• Mechanical engineers.
• Renewable energy specialists.
• Independent forensic experts.

Expert evidence frequently determines the outcome of litigation or arbitration.

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15. Evidence Preservation

Developers should preserve:

• Construction photographs.
• Drone footage.
• Daily site reports.
• Inspection records.
• Quality control documentation.
• Test reports.
• Correspondence.
• Maintenance records.

Comprehensive documentation strengthens future legal claims.

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16. EMRA Compliance

Construction defects may affect:

• Generation licenses.
• Technical compliance.
• Operational safety.
• Regulatory inspections.
• Administrative investigations.

Developers should ensure that remediation plans remain consistent with EMRA obligations.

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17. Compensation Claims

Foreign investors may seek compensation for:

• Repair costs.
• Replacement costs.
• Lost electricity production.
• Delay damages.
• Additional engineering expenses.
• Expert fees.
• Financing costs.
• Legal expenses.

Recoverable losses depend on the contract and Turkish law.

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18. Limitation of Liability

Many EPC Contracts contain:

• Liability caps.
• Excluded losses.
• Consequential loss exclusions.
• Time limits.
• Warranty periods.

These provisions should be reviewed before initiating proceedings.

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19. Dispute Resolution

Construction defect disputes are commonly resolved through:

• Negotiation.
• Mediation.
• Expert determination.
• Dispute Adjudication Boards (where applicable).
• ICC Arbitration.
• ISTAC Arbitration.
• LCIA Arbitration.
• Turkish Commercial Courts.

International renewable energy projects frequently favor arbitration because of confidentiality and enforceability.

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Top 30 Legal Checks After Discovering Construction Defects

1. Review the EPC Contract.
2. Inspect warranty provisions.
3. Preserve evidence.
4. Photograph all defects.
5. Conduct drone inspections.
6. Obtain independent expert reports.
7. Review manufacturer warranties.
8. Notify the EPC contractor.
9. Notify consultants.
10. Notify suppliers.
11. Notify insurers.
12. Review EMRA obligations.
13. Review financing documents.
14. Assess project safety.
15. Evaluate operational impact.
16. Calculate financial losses.
17. Review performance guarantees.
18. Assess insurance coverage.
19. Analyze limitation periods.
20. Preserve defective components.
21. Review quality-control records.
22. Verify testing documentation.
23. Evaluate repair options.
24. Coordinate with lenders.
25. Review dispute resolution clauses.
26. Consider mediation.
27. Assess arbitration options.
28. Protect electronic records.
29. Develop a legal strategy.
30. Obtain specialist Turkish legal advice.

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Common Mistakes Made by Foreign Investors

Foreign investors frequently:

• Sign final acceptance too early.
• Delay notifying contractors.
• Destroy defective components.
• Ignore warranty deadlines.
• Rely solely on internal engineers.
• Fail to notify insurers promptly.
• Overlook consultant liability.
• Ignore financing obligations.
• Miss contractual claim deadlines.
• Delay seeking legal advice.

These mistakes may significantly reduce recoverable compensation.

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Best Practices

When construction defects are discovered:

• Conduct an immediate technical inspection.
• Preserve all available evidence.
• Suspend further damage where possible.
• Notify all relevant contractual parties.
• Review EPC and warranty documentation.
• Coordinate with insurers and lenders.
• Engage independent engineering experts.
• Obtain specialist Turkish legal advice before agreeing to repairs or settlements.

Early legal and technical intervention substantially improves the likelihood of a successful outcome.

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Why Professional Legal Assistance Is Essential

Construction defect disputes require expertise in:

• Turkish Code of Obligations.
• Turkish Commercial Code.
• Electricity Market Law.
• Renewable Energy Law.
• EMRA regulations.
• Construction law.
• Engineering contracts.
• International arbitration.

An experienced Turkish energy lawyer can:

• Assess contractor liability.
• Coordinate technical investigations.
• Draft formal defect notices.
• Preserve warranty rights.
• Pursue compensation claims.
• Negotiate settlements.
• Represent investors in arbitration and litigation.
• Ensure compliance with Turkish energy legislation.

Professional legal support helps foreign investors protect the long-term value and performance of renewable energy assets.

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Frequently Asked Questions

1. What is considered a construction defect in a solar or wind project?

A construction defect is any deficiency in design, workmanship, materials, installation, or performance that causes the completed project to fail to meet contractual specifications, applicable legislation, technical standards, or accepted engineering practices.

2. Can foreign investors claim compensation for construction defects?

Yes. Foreign investors may seek compensation where defects result from contractual breaches, negligent design, defective workmanship, defective materials, or other legally actionable conduct, subject to the relevant contract terms and Turkish law.

3. What is the difference between a latent defect and a patent defect?

A patent defect is visible or reasonably discoverable during inspection or acceptance. A latent defect is hidden and becomes apparent only after completion or during operation.

4. Is the EPC contractor always responsible?

Not necessarily. Depending on the circumstances, liability may also rest with designers, consultants, equipment manufacturers, suppliers, subcontractors, or multiple parties simultaneously.

5. Can defective equipment be covered by warranty?

Yes. Many EPC Contracts and manufacturer warranties provide repair or replacement rights for defective equipment, provided that warranty procedures and maintenance requirements have been followed.

6. Should independent experts be appointed?

Absolutely. Independent engineering experts play a critical role in identifying the cause of defects, determining responsibility, estimating repair costs, and providing evidence in arbitration or court proceedings.

7. Is arbitration common for renewable energy construction disputes?

Yes. Large international renewable energy projects frequently include ICC, ISTAC, LCIA, or other arbitration clauses because arbitration offers confidentiality, specialist decision-makers, and internationally enforceable awards.

8. Why should foreign investors hire a Turkish energy lawyer?

A Turkish energy lawyer can evaluate contractual remedies, preserve evidence, coordinate technical experts, enforce warranty rights, pursue compensation claims, ensure compliance with EMRA requirements, negotiate settlements, and represent investors in arbitration or litigation arising from construction defects.

Legal Support – Contact Our Energy Lawyers

Construction defects can significantly reduce the value and profitability of renewable energy investments. Prompt legal action, combined with technical investigation and effective contract enforcement, is essential to protect investor rights and secure appropriate compensation.

Fırat Fesih Kaya and our legal team advise foreign investors, renewable energy developers, infrastructure funds, EPC contractors, multinational corporations, project sponsors, lenders, and institutional investors on construction defect claims, EPC Contracts, warranty disputes, EMRA compliance, renewable energy investments, engineering contracts, international arbitration, and all aspects of Turkish energy and commercial law.

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Email: info@firatfesihkaya.av.tr

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