Alternative Tender in Public Procurement Law

Alternative tender: a tender with an alternative solution for functional specifications. Only admissible on express authorisation. § 106 BVergG 2018, § 35 VgV.

Definition: An alternative tender (Alternativangebot) is a tender in which a bidder offers a functionally equivalent solution that differs from the contract notice, admissible where functional or outcome-based specifications are used, provided that the contracting authority has expressly permitted alternative tenders in the contract notice and set minimum requirements for their admissibility to evaluation.

Last updated: January 2026 · Legal status: § 106 BVergG 2018, Art. 45 Directive 2014/24/EU, § 35 VgV

What is an alternative tender?

An alternative tender (in Austria sometimes referred to as a "variant tender") exists where a bidder does not offer the works/services exactly as described in the contract notice, but instead a functionally equivalent alternative solution that achieves the same result by a different route.

The alternative tender presupposes a degree of openness in the contract notice: with a purely constructive, fully detailed specification, there is no scope for alternatives. Alternative tenders come into consideration in particular for functional or outcome-based specifications, where the contracting authority defines the desired outcome but leaves the specific solution to the bidder.

Typical fields of application: construction contracts using innovative building methods, IT solutions with alternative architecture, energy supply concepts using different technologies.

The term "alternative tender" is sometimes used synonymously with "variant tender" in Austria; both refer to the same concept.

Significance and function

The alternative tender allows bidders to bring forward innovative or more economical solutions that the contracting authority may not have considered when preparing the tender — to the benefit of both sides.

Contracting authorities benefit from the creativity and expertise of the market without having to insist on rigid specifications. Bidders can bring their specific technical strengths to bear. The instrument promotes innovation in public procurement.

Mandatory preconditions for the admissibility of alternative tenders:

Express authorisation: The contracting authority must expressly state in the contract notice that alternative tenders are admitted. Without this statement, alternative tenders must be excluded.
Minimum requirements: The contracting authority must set minimum requirements that the alternative tender must meet in order to be eligible for evaluation.
Main tender: It is necessary to check whether a main (compliant) tender must be submitted at the same time. The tender conditions may require this.

An alternative tender that does not meet the stated minimum requirements must be excluded.

Legal basis

In Austria, alternative tenders are governed by § 106 BVergG 2018; in Germany, § 35 VgV regulates variants for the above-threshold sector; at EU level, Art. 45 of Directive 2014/24/EU provides the basis.

§ 106 BVergG 2018 provides that alternative tenders may only be considered if the contracting authority has stated their admissibility in the contract notice and set minimum requirements for evaluation. At the same time, the award criteria must be designed so that alternative tenders can also be evaluated meaningfully.

In Germany, § 35 of the Procurement Regulation (VgV) provides for supplies and services contracts above the EU thresholds that variants (the German term for alternative tenders) may only be evaluated where they have been expressly admitted and minimum requirements have been set. § 13(3) VOB/A contains corresponding rules for works contracts.

Distinction from related concepts

Feature	Alternative tender	Variant tender	Amended tender
Content	Functionally equivalent alternative solution	Supplementary variant to main tender	Deviation from tender conditions
Main tender	Required depending on tender	Always to be submitted in addition	Not mandatory
Typical situation	Functional specification	Constructive specification	Deviation from contract terms
AT legal basis	§ 106 BVergG 2018	§§ 105 et seq. BVergG 2018	§§ 105 et seq. BVergG 2018
DE legal basis	§ 35 VgV	§ 35 VgV	No standalone concept

Related terms

FAQ

May a bidder submit only an alternative tender, without a compliant main tender? This depends on the contract notice. The contracting authority may stipulate in the contract notice whether a compliant main tender must be submitted alongside the alternative tender. Where no such requirement is set, a stand-alone alternative tender is in principle admissible, provided it meets the minimum requirements.

What are minimum requirements for alternative tenders? Minimum requirements are criteria set by the contracting authority in the contract notice that an alternative tender must meet in order to be eligible for evaluation. They describe the functional minimum profile of the works/services (e.g. minimum performance values, mandatory technical standards, maximum delivery times).

How are alternative tenders evaluated? Alternative tenders are evaluated against the same award criteria as compliant main tenders. The contracting authority must ensure when setting the award criteria that they are suitable for the meaningful evaluation of alternative tenders.

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