Contract Types in Public Procurement Law 2026 – Overview & Distinctions

Contract types in public procurement law: supply, works and service contracts, contracts for work, framework agreements and concessions compared.

Definition: "Contract types" refers in public procurement law to the various categories of contract that public contracting authorities conclude with companies – in particular supply, works and service contracts, as well as special forms such as framework agreements and concession contracts.

Last updated: January 2026 · Legal basis: BVergG 2018, GWB, VgV, VOB/B, Directives 2014/24/EU and 2014/23/EU

Why does the distinction between contract types matter?

Classifying a contract in the correct contract type determines which procurement rules apply and which thresholds are relevant. An incorrect classification can lead to the choice of an impermissible procurement procedure and so constitute a serious procurement-law error. Categorisation is based primarily on the main subject matter of the contract.

Supply contracts

Supply contracts cover the purchase, leasing, hire or hire-purchase of goods and products.

Typical examples: office supplies, IT hardware, vehicles, medical equipment, food. The installation and assembly of products is also covered where it is of subordinate importance compared to the supply. The EU threshold for supply contracts of public contracting authorities is currently EUR 143,000 (federal authorities) or EUR 221,000 (other public contracting authorities).

Works contracts

Works contracts concern the execution, or the design and execution, of works or of a structure.

The term "structure" is to be interpreted broadly: it covers the outcome of any building or civil-engineering works that fulfils an independent economic and technical function. In Germany, the VOB (Procurement and Contract Regulations for Construction Works) applies to construction works and contains both procurement rules (VOB/A) and contract rules (VOB/B). The EU threshold for works contracts is EUR 5,538,000.

Service contracts

Service contracts are all contracts that are neither supply nor works contracts – a residual category with a wide field of application.

This includes: IT services, consultancy, cleaning, security, catering, transport, research and development, architectural and engineering services. The threshold corresponds to that for supply contracts.

Framework agreements

Framework agreements are contracts that set the conditions for future individual call-offs without themselves giving rise to an obligation to perform. They allow recurring needs to be met efficiently and with legal certainty, without having to carry out a new procurement procedure for each individual order. Framework agreements may be concluded with one or more companies and generally have a maximum term of four years.

Concession contracts

Under a concession, the company receives, instead of remuneration, the right to commercially exploit the service itself – and so bears the economic risk. Concessions are governed by Directive 2014/23/EU and by national implementing legislation (KonzVgV in Germany). Typical examples: toll roads, parking garages, water management.

Mixed contracts

For mixed contracts that combine elements of several contract types, classification follows the main subject matter (§ 110 GWB-DE). Where the supply element predominates, the supply-contract regime applies; where the works element predominates, the works-contract regime applies.

FAQ

What is the difference between a contract for work and a service contract in procurement law? In public procurement law this civil-law distinction is less relevant. What matters is whether the contract qualifies as a supply, works or service contract in the procurement-law sense.

Are there contract types that are not subject to procurement law? Yes, e.g. employment contracts, intra-administrative agreements, and certain services that are expressly excluded from the scope (e.g. certain legal services).

How long can a public contract run for? The law does not prescribe a general maximum term, but excessively long terms can conflict with the principle of competition; for framework agreements there is a four-year limit.

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