Reliability in Procurement Law 2026

Reliability: a selection criterion in procurement law certifying a bidder's personal integrity and law-abiding corporate conduct.

Definition: In public procurement law, reliability denotes the personal suitability of a bidder in the sense that no mandatory or discretionary grounds for exclusion apply, in particular no convictions for serious offences, no grave professional misconduct, and the proper fulfilment of tax and social security obligations.

Last updated: January 2026 · Legal basis: Directive 2014/24/EU Art. 57, BVergG 2018 §§ 78–84, GWB §§ 123–124

What does reliability mean in procurement law?

Reliability is one of the three classic selection criteria in public procurement law – alongside economic and financial standing and technical and professional capability. It concerns the personal integrity of the bidder and ensures that public bodies do not award contracts to undertakings that have committed serious legal or ethical breaches.

In the terminology of the EU Procurement Directive 2014/24/EU, the term "reliability" is not expressly used; instead, Art. 57 governs the grounds for exclusion, which correspond in substance to the same concept.

Mandatory grounds for exclusion

Where mandatory grounds for exclusion apply, the contracting authority is obliged to exclude the bidder from the procedure – no discretion exists.

Pursuant to Art. 57(1) of Directive 2014/24/EU, bidders must be excluded if final convictions exist against them or persons acting on their behalf for the following offences:

Participation in a criminal organisation
Corruption
Fraud and subsidy fraud
Terrorist offences
Money laundering and terrorist financing
Child labour and human trafficking

In Austria, these grounds for exclusion are implemented in § 78 BVergG 2018; in Germany, in § 123 GWB.

Discretionary grounds for exclusion

Where discretionary grounds for exclusion apply, it is at the discretion of the contracting authority whether to exclude a bidder; however, it must justify the decision.

Art. 57(4) of Directive 2014/24/EU lists a number of discretionary grounds for exclusion, including:

Grave professional misconduct
Anti-competitive conduct (e.g. cartel agreements)
Conflict of interest
Lack of integrity (e.g. influencing the contracting authority's decision-making)
Early termination of previous contracts due to poor performance
False declarations in the procurement procedure
Tax and social security arrears

Proof of reliability

Contracting authorities typically request certain documents as proof of reliability, in particular criminal record extracts and clearance certificates.

Typical evidence:

Criminal record extract (legal persons and relevant natural persons)
Tax office certificate (tax compliance)
Social security certificate (no arrears)
Self-declaration (European Single Procurement Document / ESPD)

The European Single Procurement Document (ESPD) allows bidders initially to demonstrate compliance with selection requirements by way of self-declaration; the submission of the actual supporting documents may be deferred until the award.

Self-cleaning

Bidders subject to grounds for exclusion can restore their reliability through self-cleaning measures and need not necessarily be excluded despite an existing ground for exclusion.

Art. 57(6) of Directive 2014/24/EU provides for the self-cleaning concept: bidders must demonstrate that they have compensated, or are willing to compensate, the damage caused, that they have actively cooperated with the investigating authorities, and that they have taken concrete technical, organisational and personnel measures to prevent further misconduct.

In Austria, self-cleaning is regulated in § 83 BVergG 2018; in Germany, in § 125 GWB.

FAQ

How long do grounds for exclusion last? Mandatory grounds for exclusion apply for a maximum of 5 years from the final judgment; discretionary grounds for exclusion for a maximum of 3 years from the event (Art. 57(7) Directive 2014/24/EU).

Can grounds for exclusion in consortia be limited to individual members? Yes. As a rule, grounds for exclusion affecting individual members lead to the exclusion of the entire consortium unless it can demonstrate self-cleaning.

Must I, as a bidder, disclose all grounds for exclusion from the outset? The ESPD initially permits a self-declaration. False statements, however, can themselves constitute a ground for exclusion.

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