Above-Threshold Contract Value in Public Procurement Law 2026

Above-threshold contract value: contract value above the EU thresholds with full application of EU procurement law – calculation, aggregation and current values 2026.

Definition: An above-threshold contract value exists when the estimated total value of a public contract (net, excluding VAT) exceeds the thresholds set by the European Commission and thus triggers the full application of the EU procurement directives.

Last updated: January 2026 · Legal basis: Art. 4 Directive 2014/24/EU; §§ 3–3b VgV; Delegated Regulation (EU) 2023/2495; § 12 BVergG 2018

Concept and function

The above-threshold contract value is the procurement-law entry threshold for EU procurement law: if the estimated contract value exceeds one of the thresholds set at EU level, public contracting authorities must apply the full EU procurement law with EU-wide notice, strict minimum deadlines and the special legal protection regime of the procurement chambers. The above-threshold contract value is thus the central constituent element for the applicability of GWB procurement law (§§ 97 et seq. GWB) and BVergG 2018 (above-threshold area).

Current thresholds (2024/2025)

The European Commission sets the thresholds every two years by means of a delegated regulation; the currently applicable values were determined by Delegated Regulation (EU) 2023/2495.

Classic area (Directive 2014/24/EU)

Type of contract	Central government authorities	Other public contracting authorities
Supply and service contracts	EUR 143,000	EUR 221,000
Works contracts	EUR 5,538,000	EUR 5,538,000
Design contests (prize competitions)	EUR 143,000 / EUR 221,000	–

Sector area (Directive 2014/25/EU)

Type of contract	Threshold
Supply and service contracts	EUR 443,000
Works contracts	EUR 5,538,000

Concessions (Directive 2014/23/EU)

Type of concession	Threshold
Works and service concessions	EUR 5,538,000

Calculation of the contract value

The calculation of the contract value follows mandatory statutory rules that prevent circumvention through splitting or excluding certain costs.

Basic rule

Decisive is the estimated total contract value excluding VAT, including all options, extension clauses and other additional services that the contracting authority already plans at the time of the award.

Framework agreements

In the case of framework agreements, the estimated total value of all individual contracts over the entire term (max. 4 years) is decisive.

Lot division

If contracts are divided into lots, the sum of all lots is decisive for the threshold calculation – not the value of the individual lot. An exception applies to small lots: lots below EUR 80,000 (supplies/services) or EUR 1,000,000 (works contracts) may be awarded under simplified rules up to a limit of 20 % of the total value.

Recurring contracts and continuing services

In the case of continuing services without a fixed total price, the monthly price is multiplied by 48 (4-year calculation). In the case of recurring contracts, the total value of similar contracts in the previous year period or in the next 12-month period must be used.

Significance of correct estimation

An incorrect, too-low contract value estimate may lead to the unlawful non-application of EU procurement law, which may result in the ineffectiveness of the contract concluded and damages obligations. The estimate must be careful, methodologically verifiable and realistic at the time of initiation of the procedure.

Updating of the thresholds

The thresholds are updated every two years on 1 January; the next adjustment is expected on 1 January 2026. Public contracting authorities must check the currently valid thresholds for every award. The values are published in the Official Journal of the EU.

FAQ

What happens if the contract value exceeds the threshold during the contract term? Decisive is the estimated value at the time of the award; subsequent increases generally do not give rise to a new tender obligation, provided they were within the original estimation framework.

Are taxes included in the contract value? No, the threshold comparison is always made net (excluding VAT); the VAT is excluded.

Does the lower threshold (EUR 143,000) apply to all federal authorities? Yes, the threshold of EUR 143,000 applies to central government authorities (supreme federal authorities); for other public contracting authorities (municipalities, federal states, subordinate authorities), the higher value of EUR 221,000 applies.

Last updated: January 2026 All information without guarantee. For legally binding information, please consult a law firm specialising in procurement law.