Price Verification in Public Procurement Law 2026

Price verification in public procurement: duty and procedure for examining abnormally low tenders, legal basis and consequences for bidders and contracting authorities.

Definition: Price verification is the procedure mandated by procurement law by which a contracting authority examines the reasonableness and seriousness of a tender price, in particular where a tender appears abnormally low compared with other tenders or the estimated contract value.

Last updated: January 2026 · Legal basis: Art. 69 Directive 2014/24/EU, § 60 VgV, § 16d VOB/A, § 58 UVgO, BVergG 2018

What is price verification?

Price verification is a procurement law duty of the contracting authority that ensures that contracts are awarded only to bidders who are actually able to perform the service properly under the conditions offered. An abnormally low tender may indicate calculation errors, price dumping, unlawful subsidies or illegal practices. Price verification protects both the contracting authority against performance failures and fair competition between the bidders.

Trigger for price verification

The duty to verify the price arises as soon as a tender appears abnormally low in relation to the tendered service – there is no rigid percentage threshold in German law. Reference values from case law and practice are:

Deviation of more than 20% from the next-highest tender
Significant shortfall below the contract value estimated by the contracting authority
Deviation of more than 10% from the average price of all tenders

These values are not statutory thresholds but serve as indicators for the contracting authority's exercise of due discretion.

Course of the price verification

Price verification follows a two-stage procedure: first the contracting authority requests written clarification from the bidder, then it evaluates the explanation provided.

Stage 1 – Request for clarification: The contracting authority requests the bidder concerned in writing to explain the composition of their price. Information may in particular be requested on:

Production methods, delivery conditions and technical solutions
Particularly favourable conditions on purchasing inputs
Originality of the proposed solution
Compliance with minimum wage and collective agreement rules
Possibility of State aid

Stage 2 – Evaluation and decision: The contracting authority examines the explanations and decides whether to accept or exclude the tender.

Legal consequences

If the bidder cannot satisfactorily explain the grounds for the abnormally low tender, the contracting authority is obliged to exclude the tender. Conversely, a tender may not be rejected solely on the basis of an abnormally low price without giving the bidder a prior opportunity to comment. The conduct and outcome of the price verification must be documented in the procurement file.

State aid as ground for exclusion

A special situation arises where the low tender is based on unlawful State aid. In this case, the contracting authority may likewise exclude the tender, but must first inform the competent authority and grant the bidder a reasonable period within which to comment. This ground for exclusion is expressly provided for in Art. 69 (4) of Directive 2014/24/EU.

Documentation and reviewability

The price verification and its results must be fully documented in the procurement file, as they are subject to judicial review in any review procedure. Failure to carry out a price verification despite the presence of a conspicuously low tender constitutes a procurement law error that can lead to the annulment of the award decision.

FAQ

When must the contracting authority initiate a price verification? There is no rigid threshold. As soon as a tender appears conspicuously low compared with other tenders or the estimated value, an examination must be initiated.

May the bidder refuse to provide information? Yes, but at their own risk. If the bidder refuses to provide the required explanations, the contracting authority may exclude the tender.

Must the price verification be conducted in writing? Yes. The request for clarification, the bidder's response and the contracting authority's decision must be documented in writing.

Can an excluded low tender be challenged? Yes, the affected bidder may file a review application against the exclusion decision if they believe their tender was excluded wrongly.

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