What are Types of Public Contracts?
German and EU procurement law distinguishes between three main types of public contracts (Auftragsarten): supply contracts (Lieferauftraege), service contracts (Dienstleistungsauftraege), and works contracts (Bauauftraege). This classification is fundamental because it determines which procurement rules, thresholds, and procedural requirements apply to a given tender.
Supply contracts cover the procurement of goods, including purchase, lease, rental, or hire-purchase arrangements. Service contracts encompass all services that are not classified as works, ranging from consulting and IT services to facility management and research. Works contracts relate to construction activities, including the execution, design and execution, or the realization of a building or civil engineering work corresponding to the requirements specified by the contracting authority.
The correct classification of the contract type is one of the first decisions a contracting authority must make when planning a procurement. Mixed contracts that combine elements of different types must be classified based on the main subject of the contract, typically determined by the component with the highest estimated value. This classification has far-reaching consequences: it affects the applicable EU threshold, the choice of procurement regulation (VgV for services and supplies, VOB for construction works), the minimum time limits, and even the available procurement procedures.
Why It Matters for Bidders
Understanding the contract type is critical for bidders because it directly influences the qualification requirements, the structure of the tender documents, and the evaluation criteria. For example, works contracts often require specific trade qualifications and references for comparable construction projects, while service contracts may emphasize the qualifications and experience of the proposed personnel.
The contract type also determines the applicable threshold values. As of current EU thresholds, works contracts have significantly higher threshold values than supply or service contracts, meaning that below-threshold rules may apply to construction projects of considerable value while equivalent service contracts would already fall under the stricter EU procurement regime.
Legal Framework
The types of public contracts are defined in Sections 103 to 105 GWB. The VgV governs the award of supply and service contracts above the EU thresholds, while the VOB/A Section 2 applies to works contracts above the thresholds. Below the thresholds, the UVgO covers supply and service contracts, and VOB/A Section 1 applies to works. EU Directive 2014/24/EU provides the overarching European framework for this classification.