Performance Period in Procurement Law 2026

Definition: The performance period is the period defined in the procurement documents and the subsequent contract within which the tendered work is to be carried out in full; it covers both the start and the end of performance as well as any intermediate dates.

Last updated: January 2026 · Legal basis: BVergG 2018, GWB/VgV, VOB/B

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What is the performance period?

The performance period is the time frame of a procurement contract and defines when the commissioned work is to begin and end. It must be set out in the procurement documents and be realistic and proportionate. A performance period that is too tight can lead to uneconomic conditions, higher tender prices or – for construction works – quality problems. At the same time, public contracting authorities have a legitimate interest in works being completed on time.

Importance of the performance period for the tender

In the tender notice the performance period must be stated clearly and unambiguously so that tenderers can assess feasibility and price realistically.

The dates to be stated include:

• Start of performance: date or condition for commencement (e.g. "four weeks after award")
• Completion date: absolute date or deadline from commencement
• Intermediate dates / milestones: for complex projects, several partial completion dates
• Acceptance date: period for acceptance after completion

Performance period and tender evaluation

The performance period may be used as an award criterion where the contracting authority has a legitimate economic interest in a shorter performance period.

In practice contracting authorities can:

• Set a fixed performance period (not an evaluation criterion)
• Set a framework date and positively evaluate shorter execution times
• Provide for liquidated damages for late completion (§ 11 VOB/B; § 1168 ABGB in conjunction with contract law)

Extension of the performance period

An extension of the performance period (construction time extension) is possible under certain conditions and may give rise to additional cost claims by the contractor.

Grounds for a justified extension:

• Obstructions for which the contracting authority is responsible (e.g. late provision of plans)
• Unforeseeable events (force majeure, e.g. exceptional weather)
• Order of additional works by the contracting authority
• Delays due to official approvals to be obtained by the contracting authority

Contractors must notify obstructions in writing without delay (§ 6 VOB/B) in order not to forfeit their claims.

Performance period under framework agreements

Under framework agreements a distinction is drawn between the term of the framework agreement itself and the performance period of each individual call-off.

The term of a framework agreement is generally limited to four years (Art. 33 (1) Directive 2014/24/EU). Individual call-offs within the framework agreement may have their own, shorter performance periods.

FAQ

Can a contracting authority subsequently shorten the performance period? A unilateral shortening without good cause and without an adjustment of remuneration is generally inadmissible and may constitute a contract modification relevant under procurement law.

Are liquidated damages for late completion admissible under procurement law? Yes, provided they are proportionate and have been transparently stated in the procurement documents. In Germany, liquidated damages under § 11 VOB/B are capped at 5 % of the contract sum.

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