Calculate the below-80% completion compensation
When work decreases leave a job finishing below 80% of the first contract price, the contractor must still finish it and is paid 5% of the gap between 80% and the work done. Enter the first contract price, the work done and the dates to see the amount. No sign-up.
Completion compensation
Enter amounts excluding VAT. The first contract price is the price before any work increase or decrease; enter the work done at contract prices, without price adjustment.
Enter the first contract price, the work done and the dates, or try the sample data.
How the completion compensation is calculated
When a work is found to be finishing below 80% of the contract price, the contractor must still finish it. For their actual costs and profit, they are paid 5% of the gap between 80% of the price and the work done at contract prices, at prices on the provisional acceptance date.
Threshold = first contract price × 80%
Compensation = (threshold − work done) × 5% × ratio
Ratio = Domestic PPI (acceptance month) ÷ Domestic PPI (tender month)
The threshold is rounded to the kuruş. The ratio keeps twelve places, and the compensation is rounded to the kuruş once, at the end. Work exactly at the threshold earns nothing.
Rules applied
- First contract price
- The threshold is set on the first contract price, before any work increase or decrease; a decrease does not lower it (General Specification art. 21/4, YFK 2014/10).
- At contract prices
- The work done is the amount at contract prices. VAT, price adjustment and minimum-wage difference stay out of it.
- Work below the threshold
- Compensation arises only when the work done stays below the 80% threshold. Work at or above it earns none.
- The Domestic PPI update is a reading
- The rules say the amount is paid at prices on the provisional acceptance date but name no method, and the High Technical Board's decisions (2005–2020) name none either. As Kesinfiyat's reading, this tool takes the ratio of Domestic PPI (General) from the tender month to the acceptance's effective month. For tenders announced before 01.09.2025, the reduction in General Specification art. 21/6 also starts from the tender month. The amount without the update is shown for administrations that use another method.
- Effective date
- The acceptance month is the month of the effective date in the minutes, not the approval date of the minutes. Before the provisional acceptance, the tool forecasts with the newest published month.
- In the final account, on approval
- The compensation is an extra payment to the contractor, not a deduction; it is paid in the final account with the administration's approval. If the contract is terminated and wound up, there is no such item.
What this tool does not calculate
It does not derive the work done from the progress payments; you enter the amount. It does not cover the compensation's tax consequences. Termination and winding up are outside its scope.
Legal basis: Public Procurement Contracts Law No. 4735, art. 24; General Specification for Works art. 21/4-5; High Technical Board decision 2014/10. The update method is Kesinfiyat's reading. For information only.
About the completion compensation
- Price IndicesDomestic PPI sub-indices and CPI, monthly tables since 2012.
- Price Adjustment CalculatorPrice adjustment with the official formula, from Domestic PPI and CPI.
- Progress Payment Deductions CalculatorThe cover's VAT, every deduction from a) to k) and the net amount paid to the contractor, on one sheet.
- Quantity Takeoff CalculatorRebar, concrete, formwork and excavation takeoffs: a measurement sheet with deductions, exact totals and a copy for Excel.
- Index Change CalculatorHow Domestic PPI and CPI moved since your tender month, with the In/Io ratio.
- Work Experience Update CalculatorWhat a work experience certificate counts for in the tender you enter, with the right Domestic PPI months for its kind.
- Stamp Duty CalculatorThe 9.48 per mille stamp duty on a progress payment, with the yearly cap.
- VAT Withholding CalculatorThe VAT withheld on a progress payment, at the communiqué's rate for the work type.
- Withholding Tax CalculatorWithholding tax on a multi-year construction payment, at the rate for the work type and payment month.
- Performance Bond CalculatorThe performance bond on a bid, with the below-limit 9% rule and additional bonds.
- Minimum Labour CalculatorThe minimum labour to declare for the SGK clearance, the shortfall and its estimated premium.
- Advance Payment CalculatorThe advance, its 30% or one-third cap, the recovery rate and what comes off each progress payment.
- Work Increase CalculatorThe work increase room left under the 20% (unit price) or 10% (lump sum) limit.
- Delay Penalty CalculatorThe delay penalty from the first contract price, daily rate and days late, with the 15% cap.
- Work Duration CalculatorCompletion date from the site handover, days late, final acceptance and payment deadlines.
- Fuel PricesEPDK monthly averages by fuel type, for the fuel coefficient of a price adjustment.
Stop building the final account in a spreadsheet
In the final account, the below-80% completion compensation comes ready as a proposal; once the administration approves it, it goes into the final account.