Understanding German Procurement Law

If you're entering the world of German public tenders for the first time, you'll face a mountain of acronyms: VOB, VOL, VGV, UVGO, GWB. What looks like alphabet soup is actually a well-designed system – once you understand it. This article sheds light on the complexity.

Why Does Procurement Law Exist?

Public contracting authorities – federal government, states, municipalities, and other public bodies – spend hundreds of billions of euros annually on construction projects, services, and goods. That's taxpayer money. And taxpayer money cannot be spent arbitrarily.

Procurement law ensures that:

• Competition exists and the same companies don't always win
• Transparency is guaranteed and decisions remain traceable
• Equal treatment of all bidders applies – regardless of size
• Economic efficiency is the priority

The Hierarchy: From EU Law to State Regulations

German procurement law is structured like a pyramid. At the top are EU directives that apply to all member states. Below that are national laws and regulations.

The GWB: The Constitution of Procurement Law

The Act against Restraints of Competition (GWB) is more than just a cartel law. Part 4 of the GWB forms the foundation of German procurement law. It establishes the fundamental principles:

• Who qualifies as a public contracting authority?
• What principles must be observed in procurement?
• How does legal protection work if something goes wrong?

Important sections you should know: § 97 (principles of procurement), § 134 (information obligation), § 160 (review procedure).

VOB, VOL, VGV – What Applies When?

For Construction Services: The VOB

The Construction Contract Procedures (VOB) is the rulebook for everything that gets built. It consists of three parts:

• Part A regulates the procurement procedure itself: How is tendering done? What deadlines apply? How are bids evaluated?
• Part B contains the contract conditions: What happens with defects? How is billing done? When is acceptance?
• Part C defines technical standards for individual trades

The VOB is regularly updated. Make sure you always work with the current version.

For Supplies and Services: VGV and UVGO

Here's where it gets interesting – because it depends on the contract value:

Above EU thresholds, the Public Procurement Ordinance (VGV) applies. These contracts must be tendered EU-wide. Procedures are strictly formalized, deadlines are long, and documentation requirements are extensive.

Below EU thresholds, the Sub-threshold Procurement Ordinance (UVGO) applies. Things are somewhat less bureaucratic here. Procedures are more flexible, deadlines shorter. But: clear rules still apply.

The UVGO is implemented differently by federal states. Different value limits may apply in NRW compared to Bavaria or Saxony. Check the regulations in your federal state.

Special Cases: SektVO and KonzVgV

Not all procurements follow the standard scheme:

The Sector Regulation (SektVO) applies to contracting authorities in water, energy, transport, and postal services. These sectors have their own rules because they often operate in a special competitive environment.

The Concession Award Ordinance (KonzVgV) governs the award of concessions – contracts where the contractor bears the economic risk (such as operating a highway rest stop).

When Disputes Arise: Review Board and Appeals

What if you believe something went wrong in a procurement? Procurement law provides legal protection:

1. Complaint: First, you must point out the alleged error to the contracting authority. And quickly – the complaint period is often only 10 days.

2. Review Application: If the contracting authority doesn't respond or rejects the complaint, you can appeal to the procurement review board. It examines whether procurement law was followed.

3. Standstill Period: Before a contract is awarded, the contracting authority must observe a waiting period. This gives unsuccessful bidders time to file legal remedies.

Transparency Through Announcements

Public contracting authorities must publish their procurements. This happens in various forms:

• Prior Information Notice: Announces planned procurements early
• Contract Notice: The actual tender
• Contract Award Notice: Informs about who received the contract

For EU-wide procurements, publication occurs in TED (Tenders Electronic Daily). For national procurements, contracting authorities use various platforms.

A special case is the Ex-ante Transparency Notice: Used when a contracting authority wants to award a contract without tendering and announces this in advance.

Key Points at a Glance

Conclusion: Complex, but Logical

German procurement law isn't rocket science. It follows clear logic: The higher the contract value, the stricter the rules. The greater the public interest, the more transparency is required.

The key to success in public tenders lies in understanding these structures. Those who know which rulebook applies and which procedures are possible can place their bids strategically and successfully.

In the next article, you'll learn where to find current tenders – and how to effectively use the main tender platforms.