Contract in Public Procurement Law 2026 – Formation & Validity

Definition: In public procurement law the contract is the private-law agreement between the public contracting authority and the contractor that is formed by the award of the contract following a procurement procedure and that regulates the mutual rights and obligations relating to the performance of supply, works or services.

Last updated: January 2026 · Legal basis: BVergG 2018, GWB, ABGB/BGB, Directive 2014/24/EU

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What is the public contract as a contract?

A public contract is, by its legal nature, a private-law contract, the formation of which is however strictly regulated by public procurement law. Procurement law governs the route to the conclusion of the contract – the competition and the procurement procedure – while the contract itself is governed by general civil law (ABGB in Austria, BGB in Germany).

A valid contract requires:

• That a proper procurement procedure has been carried out
• That the contract has been validly awarded
• That the standstill period has expired
• That no review proceedings are still pending

Formation through the award

Under public procurement law the contract is formed not by mutual signature but by the legally effective award of the contract. The award constitutes acceptance of the chosen bidder's tender. Once the standstill period has expired (generally 15 days after notification of the award decision) and no suspensory review application has been made, the contract can be validly concluded.

In practice, the conclusion of the contract is often documented by signing a contract document, but this has only declaratory and not constitutive legal effect.

Nullity of the contract

A contract can be declared void under procurement-law provisions if it has been concluded in breach of serious procurement-law requirements.

Under the Remedies Directive 89/665/EEC (implemented in § 135 GWB-DE, § 334 BVergG 2018-AT), a contract is ineffective where:

• It was concluded without the required prior call for tenders (de facto award)
• The standstill period was not observed
• It was concluded while review proceedings were pending

Content and contract documents

The content of the contract is determined by the procurement documents – the specifications, the general and special contract conditions, and the bidder's tender. Material changes to the contract after the award may trigger an obligation to re-tender.

FAQ

When does the contract become legally effective? After the standstill period has expired without a suspensory review application and after signature by both parties (where agreed).

What happens if a contract is declared void? The contract has no legal effect. Performances already rendered must be unwound under the rules on unjust enrichment.

Can the contracting authority terminate the contract unilaterally? The public contracting authority may terminate the contract where statutory rights of termination exist (e.g. subsequent grounds for exclusion, § 133 GWB-DE).

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