Companies participating in public procurements must conduct the bid-preparation process not only from a financial and technical standpoint but also with careful attention to the legal framework. Seemingly minor mistakes made during participation may result in the bid being deemed entirely invalid and, consequently, in disqualification from the tender. In particular, obtaining preventive legal counsel on critical elements such as the bid letter, bid security, and compliance with tender specifications helps avoid escalation to litigation and prevents loss of time and money.
In this article, we address—within a legal framework—four critical mistakes that frequently lead to bids being declared invalid, issues that are also commonly reflected in Council of State (Danıştay) and Administrative Court jurisprudence. If you require a legal assessment of your company’s specific situation, or if your issue falls outside the reasons explained below, you may benefit from our advisory services.
Failure to Prepare the Bid Letter in Compliance with Procedural Requirements
Even if the substantive content of your offer is strong, a procedural defect in the bid letter may still lead to your exclusion from the tender. Therefore, when preparing the bid letter, it must strictly comply with the formal requirements set out in the applicable laws and secondary legislation.
The bid letter—being a mandatory tender document—is comprehensively regulated under Law No. 4734 on Public Procurement, the Public Procurement General Communiqué, and other relevant regulations. In addition, the implementing regulations prepared for goods procurement, service procurement, and construction works also prescribe distinct formal requirements for bid letters. Likewise, according to Danıştay case law, bid letters that fail to meet the legally prescribed formal requirements may directly result in disqualification.
A minor defect in the bid letter can lead to irreversible consequences, and—other than corrections made through an official tender addendum—such errors typically cannot be remedied after submission. For the preparation of a bid letter that fully complies with the relevant legal and formal requirements, you may contact our office.
Insufficient or Non-Compliant Bid Security (Provisional Guarantee)
Bid security (provisional guarantee) is the security amount submitted together with the bid to demonstrate that the tenderer’s offer is serious and that the tenderer has the intent and capability to fulfill the tender requirements.
In a bid bond/letter of guarantee, the name of the tender, the tender registration number, the exact amount, the validity period, and the form of the guarantee (i.e., the bank’s guarantee undertaking) must be clearly stated. When calculating the amount of the guarantee, the rate of 3% (or the rate specified in the tender documentation) must be preserved. When obtaining the guarantee letter from the bank, attention must be paid to ensuring that the template conforms to the specimen form determined by the Public Procurement Authority (Kamu İhale Kurumu). The final validity date stated on the letter must exceed the bid validity period, and the maturity/validity of the instrument must be sufficient.
Guarantee letters that are incomplete or have an insufficient validity period are generally not corrected except through an official tender addendum. For this reason, prior to submission, the amount, duration, and the checks summarized above must be carefully verified.
Submitting a Bid Contrary to the Tender Specifications (Price/Scope Errors)
Price/scope errors are particularly common in tenders for goods procurement and construction works. Bids that breach the provisions of the tender specifications are deemed invalid outright. Offering an alternative bid where alternatives are prohibited, or submitting a bid that violates non-price evaluation elements, also constitutes a breach of the specifications.
In practice, arithmetic errors in the unit price schedule and missing signatures are also frequently encountered; for example, the absence of a signature/stamp on a single-page unit price schedule may render the bid procedurally defective. Even such a minor omission may lead to the bid being declared invalid.
Pursuant to Article 37 of Law No. 4734, “in no manner shall tenderers be requested to provide explanations for the purpose of changing the bid price or remedying non-compliance with the requirements.” Accordingly, a bid that does not meet the tender specifications is not treated as a valid bid.
Therefore, the tender specifications must be reviewed thoroughly from start to finish; all price fields in the bid forms must be completed in full; and totals in the unit price schedule must be calculated accurately. Otherwise, the tenderer may face direct disqualification.
Procedural Errors Relating to the Bid Envelope / Electronic Submission Package
The bid envelope (or electronic submission package) is the sealed envelope or electronic file in which the tenderer submits the bid letter, bid security, qualification documents, and all other mandatory documents in a complete and orderly manner. In practice, submissions are most commonly prepared and delivered as an electronic file.
The bid envelope/submission is submitted electronically through the EKAP system. Within the system, there are essentially four main tabs: the bid letter and unit price schedule; bid security information; the qualifications information table; and other documents requested in the tender documentation.
If the bid envelope/submission is not procedurally compliant, the tender commission records the issue in minutes and returns the submission unopened. Accordingly, even the smallest procedural error in the bid envelope may result in the entire bid being eliminated. The bid envelope stage is the final step of participation, where all required documents are submitted collectively to the contracting authority. A minor procedural omission at this stage may directly result in disqualification from the tender.
For the preparation of the bid envelope/submission—being the final stage of participation—in a complete manner and without legal/procedural defects (including the bid letter, bid security, qualification documents, and all other mandatory documents), you may obtain legal advisory services from our office, which provides counsel in the field of public procurement law. This reduces the risk of invalidation and ensures that the procurement process proceeds more securely for your company.