Award and Binding Period in Procurement Law 2026

Definition: The award and binding period refers to the time after the expiry of the offer period during which the bidder is bound to its submitted offer and the public contracting authority may make the award; after expiry of this period, the binding effect of the offer lapses.

Last updated: January 2026 · Legal status: BVergG 2018 § 113, VOB/A § 10a, UVgO § 22

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What is the award and binding period?

The award and binding period is a central element of procurement law: it defines the time corridor in which the contracting authority must make the award after the end of the offer period in order to be able to accept the bidder's offer. At the same time, it determines how long the bidder must maintain its offer and cannot withdraw from it. The period generally begins with the end of the offer period and ends on the date specified in the procurement documents.

The dual function of the period explains the common spelling as "award and binding period":

• Award period (from the contracting authority's perspective): the contracting authority must make the award within this period.
• Binding period (from the bidder's perspective): the bidder is bound to its offer during this period and cannot unilaterally withdraw it.

Duration of the period

The length of the award and binding period is to be determined by the contracting authority in the procurement documents and must correspond to the actual time needed for examination, evaluation and award decision.

In practice, the length of the period varies considerably depending on the complexity of the procurement procedure:

• Simple supply and service contracts: often 30–45 days
• More complex contracts and construction services: 60–90 days or more

Contracting authorities may not set disproportionately long periods, as this would impose an unreasonable burden on bidders (capital costs for deposited securities, lack of planning security). If necessary, the period may be extended with the consent of the bidders.

Effects of the expiry of the period

With the expiry of the binding period, the bidder's binding to its offer lapses – an award made after expiry of the period generally does not result in a valid contract in the absence of corresponding acceptance.

Contracting authorities are therefore well advised to make the award within the period or to agree on an extension with all bidders in good time. A unilateral extension by the contracting authority is not possible; bidders can consent to or refuse an extension.

If a bidder refuses an extension, it drops out of the competition. The originally submitted offer remains non-binding for it.

Connection with bid bond and securities

In some procurement rules, the binding period is linked to a security (bid bond) provided by the bidder, which must be deposited for the duration of the period.

In Austria, the bid bond under §§ 145 et seq. BVergG 2018 is a permissible security. It is returned in the case of loss of the contract through proper competition, but may be retained in the event of impermissible withdrawal of the offer.

FAQ

What happens if the contracting authority makes the award after expiry of the period? An award made after expiry of the period is problematic under procurement law, as the offer has lost its binding effect. Bidders may – but do not have to – still accept the award.

Can the bidder withdraw its offer during the binding period? In principle, no. The binding period is intended precisely to prevent this. A withdrawal can lead to consequences, such as the forfeiture of a deposited security.

Must the bidder consent to an extension of the period? Yes. A unilateral extension of the binding period by the contracting authority is not possible. Bidders can refuse without risking disadvantages.

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