Proof of Economic and Financial Standing in Public Procurement 2026

Definition: Proof of economic and financial standing is the evidence provided by a candidate or bidder of its economic and financial capability within the suitability assessment under procurement law — that is, proof that the undertaking is economically able to finance and perform the advertised contract properly.

Last updated: January 2026 · Legal basis: § 45 VgV, Art. 58 Directive 2014/24/EU, § 76 BVergG 2018

---

What is proof of economic and financial standing?

Proof of economic and financial standing is the financial dimension of bidder suitability: contracting authorities must ensure that the future contractor is economically stable enough to perform the contract over its full term — without insolvency risk or lack of liquidity. Economic and financial standing is, alongside technical ability and reliability, one of the three pillars of bidder suitability under § 122 GWB.

Legal basis

§ 45 VgV exhaustively governs which means of evidence may be required for economic and financial standing in the EU above-threshold range; Art. 58(3) Directive 2014/24/EU forms the EU-law basis. Contracting authorities are bound by the catalogue of permissible means of evidence.

Permissible means of evidence

The permissible means of evidence for economic and financial standing include:

• Bank statements: confirmation from a bank of the undertaking's economic capability
• Insurance evidence: proof of existing business or professional liability insurance
• Annual accounts: balance sheets or extracts therefrom, where publication is required under the law of the Member State
• Turnover declaration: declaration of total turnover and, where applicable, turnover in the area covered by the contract for the past three financial years
• Equity ratio: evidence of a sufficient equity ratio or creditworthiness

Proportionality of the requirements

Requirements on economic and financial standing must relate to the subject matter of the contract and be proportionate — in particular, any minimum turnover required by the contracting authority may, as a rule, not exceed twice the estimated contract value (§ 45(1) sentence 2 VgV). Disproportionately high turnover or equity requirements unlawfully restrict competition and may be objected to by review bodies.

Reliance on third-party capacities for economic standing

Where a bidder lacks economic capability, it may rely on the capacities of other undertakings (reliance on third-party capacities, § 47 VgV), for example by submitting a parent-company guarantee or a group guarantee. In such cases the party lending its suitability is jointly and severally liable with the bidder for performance of the contract.

Economic standing in Austria (BVergG 2018)

In Austria, §§ 76 ff. BVergG 2018 govern economic and financial standing; the requirements correspond substantively to German law. Commonly required evidence includes turnover declarations, annual accounts and proof of liability insurance.

FAQ

Can a contracting authority require a specific minimum turnover? Yes, but the minimum turnover may generally not exceed twice the estimated contract value (§ 45(1) sentence 2 VgV). Higher requirements require special justification.

What applies if an undertaking is young and cannot provide annual accounts? In this case the contracting authority must accept alternative means of evidence that demonstrate economic standing, such as recent credit reports or bank guarantees.

Does proof of economic standing differ from proof of technical ability? Yes: economic and financial standing concerns financial stability, whereas technical and professional ability concerns technical and professional competence. Both form part of the suitability assessment but are evidenced by different documents.

---

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