Time Contract in Procurement Law 2026

Definition: A time contract is a contract form in public procurement law in which the quantity of services to be performed is not determined in advance but is called off according to actual demand and remunerated according to the time spent or other units.

Last updated: January 2026 · Legal status: BVergG 2018, VOB/A, VOL/A

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What is a time contract?

A time contract is a contract form in public procurement in which remuneration is not based on a fixed defined total performance but on actual time spent or on call-off. Unlike classic unit-price contracts or lump-sum contracts, the hourly rate or daily rate is at the centre of pricing in a time contract. The contracting authority calls off services as needed without guaranteeing a fixed total quantity at the outset.

Time contracts are typically used when the precise scope of services cannot yet be sufficiently determined at the time of the contract award – for example, in maintenance services, technical consultancy, engineering activities, or smaller construction and maintenance work.

Distinction from similar contract forms

Time contracts must be distinguished from related contract models, in particular framework agreements and call-off contracts. While a framework agreement sets out the conditions for a plurality of future individual contracts, the time contract is itself already a contract – but with an open scope of services. In a unit-price contract, quantities are estimated in advance, which are then settled on the basis of units actually performed; by contrast, in a time contract such a quantity specification is missing entirely or is only very roughly indicated.

In German procurement law, in particular in the VOB/A, time contracts are treated as a variant of the unit-price contract in which rates (e.g. hourly wages) are agreed.

Particularities under procurement law

The procurement-law treatment of time contracts requires particular care when estimating the contract value, since no fixed quantities are stipulated. For the calculation of the relevant contract value – and thus the question of whether EU thresholds are exceeded – the estimated total value over the term of the contract is to be applied. For an open-ended contract term, EU procurement directives apply a multiplier of 48 months as the calculation basis.

Contracting authorities must draft the technical specifications as precisely as possible even for time contracts, for example by specifying hourly rates, qualification requirements for the personnel to be deployed, and a realistic estimate of annual demand.

Legal bases

• BVergG 2018 (Austria) – general principles on technical specifications and contract value estimation
• VOB/A § 4 (Germany) – contract conditions for construction services, unit-price contract
• Directive 2014/24/EU, Art. 5 – methods for calculating the estimated contract value

FAQ

When is a time contract permissible in public procurement? A time contract is permissible if the scope of services cannot be sufficiently determined at the time of the award. The technical specifications must nevertheless be as clear as possible.

How is the contract value calculated for a time contract? The estimated total value over the contract term is applied. In the case of an indefinite term, 48 months are taken as the calculation period.

Is a time contract the same as a framework agreement? No. A time contract is already a specific contract with an open scope of services. A framework agreement only sets out the conditions for future individual contracts.

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