Suitability Check in Procurement Law

Suitability check: review of authorisation, reliability and capability of bidders. ESPD, pre-qualification. §§ 68 et seq. BVergG 2018, §§ 42 et seq. VgV.

Definition: The suitability check is the formal review by the contracting authority of whether a candidate or bidder has the necessary authorisation, reliability and economic, financial, technical and professional capacity to perform the contract tendered.

Last updated: January 2026 · Legal basis: Articles 56–65 of Directive 2014/24/EU, §§ 68 et seq. BVergG 2018, §§ 42 et seq. VgV

What is a suitability check?

The suitability check is a central element of every award procedure and ensures that only companies capable of performing the contract properly can be awarded the contract. It must be strictly separated from bid evaluation (award examination): the suitability check assesses the company itself, while bid evaluation assesses the submitted tender.

The suitability check is structured into three main areas:

1. Authorisation (professional capacity to act)

Authorisation refers to the legal and trade-law right to pursue the activity tendered. This includes entries in professional or trade registers, trade authorisations or equivalent permits. Article 58(1)(a) of Directive 2014/24/EU obliges contracting authorities to require only the authorisation actually needed for contract performance.

2. Reliability (grounds for exclusion)

Reliability means that no grounds for exclusion apply to the candidate or bidder. Directive 2014/24/EU distinguishes between:

Mandatory grounds for exclusion (Article 57(1) of Directive 2014/24/EU): e.g. convictions for corruption, fraud, money laundering, human trafficking or terrorism. The contracting authority must take these grounds into account.
Discretionary grounds for exclusion (Article 57(4) of Directive 2014/24/EU): e.g. insolvency, serious breaches of duty, collusive agreements. The contracting authority may, but need not, exclude.

3. Economic, financial and technical capacity

The capacity check ensures that the bidder has sufficient financial and technical resources to perform the contract.

Evidence of economic and financial standing may include:

Minimum turnover (no more than twice the estimated contract value, Article 58(3) of Directive 2014/24/EU)
Balance sheets and annual financial statements
Professional indemnity insurance

Evidence of technical and professional ability may include:

Reference lists for comparable contracts
Evidence of specialist staff and qualifications
Description of technical equipment and quality assurance measures
Information on the supply chain and subcontractors

Significance and function

The suitability check protects the contracting authority against awards to unsuitable companies and ensures proper contract performance – at the same time, suitability requirements must be proportionate and non-discriminatory.

European Single Procurement Document (ESPD)

The European Single Procurement Document (ESPD) is a standardised form that companies submit as preliminary evidence of their suitability when applying or submitting a bid. It is governed by Implementing Regulation (EU) 2016/7 and allows companies to provide an initial self-declaration without submitting extensive documents. The actual evidence is only requested from the prospective contractor before contract award (Article 59 of Directive 2014/24/EU).

Pre-qualification

Pre-qualification is an upstream procedure in which companies demonstrate their suitability once to an independent body and receive a certificate that they can submit in subsequent award procedures, without having to provide the evidence each time. In Germany, the pre-qualification register (PQ-VOL, PQ-VOB) provides such a system. Austria has a register of suitable contractors.

Legal basis

The suitability check is comprehensively governed by EU law and transposed into national law.

Articles 56–65 of Directive 2014/24/EU – Suitability criteria, grounds for exclusion, evidence
Article 59 of Directive 2014/24/EU – European Single Procurement Document (ESPD)
Implementing Regulation (EU) 2016/7 – Standard ESPD form

Austria

In Austria, the suitability check is governed by §§ 68 et seq. BVergG 2018 (BGBl. I No 65/2018). § 68 BVergG 2018 obliges the contracting authority to require only such suitability evidence as is appropriate and proportionate to the subject matter of the contract. The types of evidence are listed in §§ 72 et seq. BVergG 2018. Self-cleaning under Article 57(6) of Directive 2014/24/EU is enshrined in § 83 BVergG 2018.

Germany

In Germany, suitability requirements and evidence above the thresholds are governed by §§ 42 et seq. VgV (Procurement Ordinance). For construction works, §§ 6 et seq. VOB/A EU apply. Below the thresholds, §§ 33 et seq. UVgO govern the suitability check. The Competition Register (WRegG) has, since 2021, enabled the automated retrieval of grounds for exclusion.

Related terms

FAQ

May a contracting authority set excessive suitability requirements? No. Suitability requirements must relate to the subject matter of the contract, be proportionate to it and not unduly restrict competition. Article 58(1) of Directive 2014/24/EU expressly anchors the principle of proportionality. Excessive requirements can be challenged in review proceedings.

What is self-cleaning and when is it possible? Self-cleaning allows companies affected by a ground for exclusion to avoid exclusion through documented remedial measures (e.g. payment of damages, cooperation with authorities, compliance measures). The contracting authority assesses whether the measures are sufficient.

When must suitability evidence be submitted? Above the thresholds, a European Single Procurement Document (ESPD) is initially accepted. The actual evidence documents only have to be submitted by the prospective contractor before contract award.

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