Tender Price and Contract Sum in Public Procurement Law 2026

Definition: The tender price is the total remuneration offered by the bidder for the works/services advertised; the contract sum is the actual contract value agreed after award, which may differ from the tender price.

Last updated: January 2026 · Legal status: BVergG 2018, GWB/VgV, VOB/A, UVgO

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What is the tender price?

The tender price is the core figure of any public procurement procedure and forms the basis for tender evaluation and subsequent contract design. It covers all costs the bidder has calculated for full and proper performance of the works/services advertised and which it intends to charge to the contracting authority. The bill of quantities generally requires unit prices, from which the total price (tender sum) is calculated by multiplication with the quantity amounts.

The tender price must include all costs, including ancillary costs, overheads, risk and profit. Discounts and rebates must be shown in the tender itself — subsequent price negotiations are in principle not permitted in procurement law (prohibition on negotiation in the open and restricted procedures).

Contract sum: definition and significance

The contract sum is the contract price legally agreed by the award and may differ from the original tender sum where contract variations, quantity changes or contractually agreed adjustments occur. Under unit-price contracts, the final invoiced sum only emerges after measurement and billing of the quantities actually performed. Under lump-sum contracts, the contract sum is fixed unless changes in scope are agreed.

For the estimation of the contract value in the sense of EU threshold testing, the actual tender price is not decisive but rather the estimated contract value calculated in advance by the contracting authority (§ 12 BVergG 2018 / § 3 VgV).

Pricing types and forms

Procurement law distinguishes between different pricing types, each of which entails different risks for the contracting authority and contractor.

• Unit price: Price per unit of quantity; total price arises from quantity multiplied by unit price. Quantity risk is borne by the contracting authority.
• Lump-sum (fixed) price: Fixed total price for a defined service. Quantity risk is borne by the contractor.
• Hourly / time-and-materials rates: Remuneration by actual effort; only permitted for supplementary or unforeseeable partial services.
• Variable prices: Price-escalation clauses for longer contract terms to account for wage and material price developments.

Price information and formal requirements

Missing or incomplete price information generally leads to mandatory exclusion of the tender. Pursuant to § 126 BVergG 2018 and § 16 VOB/A, tenders must be excluded if prices are missing, unless the contracting authority has expressly permitted individual items to be left unpriced. Price information must be unambiguous and unconditional.

FAQ

What is the difference between tender price and contract sum? The tender price is the sum offered by the bidder before award; the contract sum is the amount contractually fixed after award, which may change during contract performance.

May the contracting authority negotiate the tender price? In the open and restricted procedure a strict prohibition on negotiation applies (§ 103 BVergG 2018 / § 15 VgV). Price negotiations are only permitted in the negotiated procedure.

What happens if a tender price appears abnormally low? The contracting authority is obliged to query abnormally low tenders and request the bidder to clarify. If the seriousness of the price cannot be substantiated, the tender must be excluded.

How is VAT handled? Tender prices are in principle stated without VAT (net); VAT is shown separately. Threshold calculations are likewise done on a net basis.

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