Suitability in Procurement Law 2026

Suitability in procurement law: a bidder's capacity to perform the contract properly. Definition, suitability criteria and evidence requirements at a glance.

Definition: In procurement law, the suitability of a bidder or candidate is the capacity to perform a public contract properly. It is assessed against the criteria of authorisation to pursue the professional activity, economic and financial standing, and technical and professional ability.

Last updated: January 2026 · Legal basis: Directive 2014/24/EU Articles 58–64, BVergG 2018 §§ 70–86, GWB §§ 122–124, VgV §§ 42–48

What is suitability in procurement law?

The suitability check is the procurement-law instrument by which contracting authorities ensure that contracts are awarded only to companies that are objectively able to perform them correctly and in full. Suitability must be strictly separated from award criteria: while award criteria identify the economically most advantageous tender, the suitability check concerns the bidders themselves – their reliability, financial stability and professional competence.

The suitability check is a two-stage procedural element: first, bidders are screened for grounds for exclusion; then positive suitability is established against the suitability criteria.

The three dimensions of suitability

European and national procurement law distinguish three categories of suitability criteria, all of which must be met cumulatively.

1. Authorisation to pursue the professional activity

Authorisation to pursue the professional activity (Article 58(1)(a) of Directive 2014/24/EU) concerns the fundamental legal and professional right of a company to provide the service tendered. It includes:

Registration in professional or trade registers
Necessary administrative authorisations, licences or permits
Membership of professional bodies (e.g. chamber of architects, bar association)

2. Economic and financial standing

Economic and financial standing (Article 58(3) of Directive 2014/24/EU) ensures that the contractor is financially capable of performing the contract. Relevant evidence includes:

Annual turnover (overall or contract-specific turnover)
Balance sheets or annual financial statements
Professional indemnity insurance at an appropriate level
Bank reference or similar evidence of creditworthiness

3. Technical and professional ability

Technical and professional ability (Article 58(4) of Directive 2014/24/EU) demonstrates the professional competence to perform the contract:

References for comparable contracts (reference list)
Evidence of training and qualifications of the staff deployed
Technical equipment and resources
Quality management systems (e.g. ISO 9001 certification)
Environmental management systems (e.g. ISO 14001, EMAS)

Proportionality of suitability requirements

Suitability requirements must be proportionate and must not unduly restrict access to competition. Article 58(5) of Directive 2014/24/EU requires suitability requirements to relate to the subject matter of the contract and to be reasonable. An excessive minimum turnover (e.g. three times the contract value) breaches procurement law.

Grounds for exclusion

Before positive suitability is assessed, mandatory and discretionary grounds for exclusion must be checked. Mandatory grounds for exclusion (Article 57(1) of Directive 2014/24/EU, § 123 GWB, § 78 BVergG 2018) include, among others, final convictions for corruption, fraud, money laundering or human trafficking. Discretionary grounds for exclusion (Article 57(4) of Directive 2014/24/EU) lie within the contracting authority's discretion and concern, for example, grave professional misconduct or past performance deficiencies.

Self-cleaning

Companies affected by a ground for exclusion can restore their reliability through self-cleaning measures. Article 57(6) of Directive 2014/24/EU and § 125 GWB set out the conditions under which a company may participate in an award procedure despite a ground for exclusion (e.g. compensation for damage, cooperation with authorities, organisational improvements).

Reliance on third-party capacity and subcontractors

Bidders may rely on the capacities of other entities (reliance on third-party capacity) for certain suitability requirements. Article 63 of Directive 2014/24/EU allows bidders to "borrow" other companies' suitability (e.g. of subcontractors or affiliated companies) for economic, financial or technical capacity. They must demonstrate that these capacities are actually available to them.

Related terms

FAQ

What is the difference between suitability and award criteria? Suitability concerns the company itself (can it perform the contract?), award criteria concern the specific tender (which is the most economically advantageous tender?). Mixing the two is impermissible under procurement law.

Can a contracting authority set any suitability requirement? No. Suitability requirements must relate to the subject matter of the contract, be proportionate and not discriminate.

What happens if a bidder does not meet the suitability requirements? The bid or request to participate must be excluded. A bidder without the required suitability cannot be awarded the contract.

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