Acceleration Bonuses in Procurement Law 2026

Definition: Acceleration bonuses are contractual arrangements under which a contractor receives additional remuneration if it delivers a service faster than originally agreed, and which are thus used as an incentive to minimise delivery or construction times.

Last updated: January 2026 · Legal basis: VOB/B, BGB, § 132 GWB, general contract law

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What are acceleration bonuses?

Acceleration bonuses – also called premiums for early completion – are a contractual steering instrument by which contracting authorities motivate contractors to deliver services as quickly as possible.

In public construction and in time-critical supply contracts, rapid completion can provide considerable economic or public benefit: a hospital opened earlier, a bridge completed faster or IT systems delivered swiftly save costs and enable earlier use. Acceleration bonuses provide a financial incentive for contractors to incur additional effort (e.g. overtime, additional resources) in order to finish earlier.

Admissibility under Public Procurement Law

Acceleration bonuses are in principle permissible under public procurement law, but they must already be governed by the procurement documents.

The principles of transparency and equal treatment require that the possibility and conditions for acceleration bonuses be disclosed in the tender. A subsequent agreement on acceleration bonuses outside the procurement-law framework could be regarded as an inadmissible contract amendment (§ 132 GWB).

The procurement regulations (VOB/B) for construction works enshrine the principle that additional services must be remunerated. Acceleration bonuses go further and reward the mere acceleration of performance.

Contractual Design

Acceleration bonuses must be designed clearly and measurably in order to avoid disputes.

A legally robust clause contains:

• The reference date (agreed completion date)
• The measurable performance requirement (e.g. completion X days before the deadline)
• The amount of the premium (amount per day or total amount)
• A maximum value of the premium
• Rules on acceptance and the calculation of deadlines
• Exclusion of the premium in the event of qualitative defects

Distinction from Liquidated Damages

Acceleration bonuses and contractual penalties (liquidated damages) are the positive and negative counterparts of the same steering approach.

While the contractual penalty (§§ 339 ff. BGB, § 11 No. 4 VOB/B) applies when the completion date is exceeded, the acceleration bonus provides a positive incentive for earlier completion. Both instruments can be combined.

FAQ

Can an acceleration bonus be agreed subsequently? After conclusion of the contract, this is only permissible in the public sector under the strict conditions of admissible contract amendments under § 132 GWB. As a rule, it should be provided for in the procurement documents.

Do acceleration bonuses reduce the right to damages in the event of delay? No. Acceleration bonuses and damages claims in the event of delay are not mutually exclusive, provided no contrary contractual arrangement has been made.

Are acceleration bonuses tax deductible? From the public sector's point of view, they are operating expenses; for the contractor they constitute taxable turnover. Tax advice is recommended.

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