Grounds for Cancellation in Public Procurement Law 2026

Definition: Grounds for cancellation are the circumstances recognised in procurement law in which a public contracting authority may or must terminate an ongoing procurement procedure without making an award.

Last updated: January 2026 · Legal status: BVergG 2018 § 141, GWB § 63, VgV § 63, VOB/A § 17

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What are grounds for cancellation?

Grounds for cancellation form the legal framework within which a public contracting authority may discontinue a procurement procedure without awarding a contract. Without a recognised ground for cancellation, the cancellation of a procurement procedure is unlawful under procurement law and may give rise to damages liability. Procurement law distinguishes between mandatory grounds for cancellation (the contracting authority must cancel) and discretionary grounds for cancellation (the contracting authority may cancel).

Mandatory Grounds for Cancellation

For mandatory grounds for cancellation, the contracting authority is obliged to cancel because a proper contract award is legally impossible.

Typical mandatory grounds for cancellation:

• No tenders or requests to participate have been received.
• All received tenders must be excluded (e.g. due to formal defects or incompleteness).
• It has been established that the procurement documents were fundamentally flawed and a non-discriminatory evaluation is not possible.
• The financing of the project has subsequently fallen away and a contract award would be unlawful.

Discretionary Grounds for Cancellation

Discretionary grounds for cancellation give the contracting authority discretion; it must weigh the bidders' interests against the public procurement interest.

Frequent discretionary grounds for cancellation:

• No economical tender: the tenders received significantly exceed the available budget.
• Loss of the procurement need due to subsequent changes in the planning basis.
• Material change to the legal or economic framework conditions after the procedure has begun.
• Justified doubts about the confidentiality of the procedure (e.g. if tender contents become known before opening).

Legal Consequences and Bidder Rights

Bidders have the right to have the lawfulness of a cancellation reviewed and to claim damages in the case of unlawful cancellation. The contracting authority is obliged to give reasons for the cancellation without delay and to notify all parties to the procedure. The reasoning must show which ground for cancellation applies.

FAQ

What is the difference between mandatory and discretionary grounds for cancellation? For mandatory grounds, the contracting authority has no discretion – it must cancel. For discretionary grounds, it may cancel but must observe proportionality and take account of the legitimate interests of the bidders.

Can a contracting authority cancel without a statutory ground? No. Cancellation without a recognised ground is unlawful under procurement law. It can be challenged by bidders in review proceedings.

What deadlines apply to a review application against a cancellation? In Austria, the deadline is generally ten days from knowledge of the cancellation decision. In Germany, the deadline is 15 days after knowledge of the infringement.

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