Exclusion Ground in Public Procurement Law 2026

Definition: An exclusion ground is a circumstance defined by procurement law in which a candidate or tenderer must (mandatory exclusion) or may (discretionary exclusion) be excluded from a procurement procedure because they fail to demonstrate the required integrity or compliance with the law.

Last updated: January 2026 · Legal status: Directive 2014/24/EU Art. 57, BVergG 2018 §§ 78–82, GWB §§ 123–125

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What is an exclusion ground?

Exclusion grounds protect the public procurement system against the participation of undertakings that, due to serious legal violations, insolvency or a lack of integrity, are not considered suitable contracting partners of the public sector. Procurement law distinguishes between mandatory exclusion grounds (the contracting authority must exclude) and discretionary exclusion grounds (the contracting authority may exclude).

Mandatory exclusion grounds

Where a mandatory exclusion ground applies, the contracting authority has no discretion – a tenderer falling within one of these circumstances must be excluded from the procedure.

Mandatory exclusion grounds under Art. 57(1) of Directive 2014/24/EU:

• Final conviction for corruption, fraud, money laundering
• Final conviction for terrorist offences
• Final conviction for trafficking in human beings
• Final conviction for child labour

Discretionary exclusion grounds

Discretionary exclusion grounds give the contracting authority a margin of discretion; it must examine each case individually and observe the principle of proportionality.

Typical discretionary exclusion grounds:

• Insolvency or liquidation of the undertaking
• Serious professional misconduct (e.g. breaches of environmental or social law)
• Conflicts of interest that cannot be remedied otherwise
• Competition-distorting prior involvement in the preparation of the procurement procedure
• Poor performance under earlier contracts with the same authority
• False declarations in the procurement procedure

Self-cleaning

A tenderer who is subject to an exclusion ground may demonstrate self-cleaning measures to avoid exclusion. Self-cleaning requires the tenderer to have made compensation, to actively cooperate with the authorities and to have taken effective organisational measures to prevent future violations. The contracting authority assesses the self-cleaning measures and decides whether they are sufficient.

FAQ

For how long do exclusion grounds apply? Directive 2014/24/EU sets exclusion periods of a maximum of five years (mandatory grounds) and three years (discretionary grounds) from the final judgment. National law may provide for shorter periods.

Must the contracting authority examine exclusion grounds ex officio? Yes. The contracting authority is obliged to examine exclusion grounds even where the tenderer does not submit a self-declaration. In practice, examination is carried out on the basis of the European Single Procurement Document (ESPD) and relevant register extracts.

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