Price Discount in Public Procurement Law 2026

Definition: A price discount is a reduction of the tendered price granted by a bidder in the tender procedure; it is admissible if it is declared unconditionally and does not hinder the examination and evaluation of the tender.

Last updated: January 2026 · Legal basis: § 53 (7) VgV, § 13 (4) VOB/A, BVergG 2018

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What is a price discount?

A price discount (rebate, prompt-payment discount) is a deduction from the overall tender price offered by the bidder which may, under certain conditions, be validly taken into account under procurement law. In public procurement, special rules apply to discounts, as they must not jeopardise the comparability of tenders or the proper evaluation. Not all forms of price discounts are admissible or taken into account in the evaluation.

Unconditional price discount

A price discount is only admissible under procurement law and to be taken into account in the tender evaluation if it is declared unconditionally and unambiguously. Discounts tied to conditions (e.g. "5% rebate if payment is made within 10 days") cause evaluation difficulties, because the contracting authority cannot reliably determine the actual price. Under § 13 (4) VOB/A, price discounts must be offered without conditions and entered at the place provided for in the tender form.

Prompt-payment discount (Skonto)

The prompt-payment discount as a special form of price discount for swift payment is in principle not taken into account in the tender evaluation under procurement law, since it depends on a condition. Public contracting authorities are subject to statutory payment deadlines and cannot make a binding commitment to use the prompt-payment discount. Such discounts may therefore be agreed contractually but do not flow into the tender evaluation.

Discount after contract award

Subsequent price discounts after award of the contract are in principle inadmissible under procurement law, as they would distort competition and undermine the transparency principle. An exception applies only in clearly defined situations, e.g. when actual quantities are billed against estimated quantities. The agreed price forms the basis of the contract; subsequent unilateral discounts affect the equal treatment of other bidders.

FAQ

Where must a price discount be entered in the tender? Generally, the tender form provides a specific place for discounts. Discounts declared elsewhere or in covering letters are often not taken into account.

Is a prompt-payment discount taken into account in the evaluation? Generally not, as it depends on a condition. Contracting authorities can, however, require a minimum prompt-payment discount and stipulate it as an evaluation criterion.

May the contracting authority demand price discounts? No. Negotiations on price are inadmissible in the open and restricted procedures. Only in the negotiated procedure may prices be negotiated.

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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.