Glossary

Time Contract Works in Procurement Law 2026

Time contract works: Construction services in public contracts settled on the basis of actual time spent and agreed hourly rates.

Definition: Time contract works are construction services in public procurement in which no fixed quantities or volumes are determined in advance; instead, remuneration is based on actual working time spent and agreed hourly or daily rates.

Last updated: January 2026 · Legal status: VOB/A, ÖNORM B 2110, BVergG 2018


What are time contract works?

Time contract works refer to a special form of contract performance for construction services in which the basis of remuneration is not a predefined quantity of services but the actual time spent. They are used when the type or scope of the construction service cannot be sufficiently determined in advance – for example, in maintenance measures, emergency repairs or additional services during ongoing construction operations.

In practice, so-called hourly rates (Stundenverrechnungssätze, SVS) are agreed for time contract works, covering all costs of the contractor (wages, ancillary wage costs, equipment provision, general overheads, profit). The contracting authority thus gains flexibility for unforeseen service requirements.

Areas of application

Time contract works are useful in construction wherever uncertainties or fluctuating demand prevent a precise technical specification.

Typical areas of application include:

  • Maintenance and servicing work on buildings or infrastructure
  • Emergency repairs and damage remediation
  • Additional work during ongoing construction projects
  • Dismantling and demolition work of unknown scope

Classification under procurement law

In public procurement law, time contract works are permissible but must be clearly described and calculable in the procurement documents. Contracting authorities are obliged to indicate at least estimated quantities for the time spent in the technical specifications, so that bidders can calculate a realistic comparison price. The VOB/A provides that for time contract works, hourly rates for different personnel qualification levels and machine hourly rates must be shown separately.

In Austria, ÖNORM B 2110 governs the fundamental contractual provisions for construction services, which also apply to time contract works.

The contract value estimation for the purposes of threshold calculation must be based on realistic demand estimates. Artificial subdivision in order to fall below thresholds is impermissible under procurement law.

Settlement and control

Careful documentation of working times performed is essential for time contract works in order to avoid incorrect settlement.

In practice, the following is recommended:

  • Daily reports indicating hours performed, personnel deployed and equipment used
  • Countersignature by the contracting authority or its representative on site
  • Regular interim invoices for cost control

Legal bases

  • VOB/A § 7 (Germany) – technical specifications, unit-price contract
  • ÖNORM B 2110 (Austria) – general contractual provisions for construction services
  • BVergG 2018 (Austria) – procurement procedures for construction services

FAQ

How are hourly rates set for time contract works? The rates are specified in the procurement documents or offered by bidders. They must cover all costs of the contractor and are generally tiered by personnel qualification.

Can time contract works be used without limit? No. They are limited to services whose quantities cannot be determined in advance. A general replacement of unit-price items with time contract works would be problematic under procurement law.

Who bears the quantity risk in time contract works? The quantity risk lies with the contracting authority: it pays for the time actually spent, irrespective of a previously estimated quantity.


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

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