Total Price in Procurement Law 2026
Total price refers to the complete, final bid price submitted by a bidder for the tendered service, inclusive of all ancillary costs.
Definition: The total price (Gesamtpreis) is the overall amount stated in a bid that a bidder demands for the full performance of the tendered service, including all part-services, ancillary costs and – unless otherwise specified – VAT.
Last updated: January 2026 · Legal basis: BVergG 2018, VOB/A, VgV
What is the total price?
The total price is the bidder's binding overall price statement covering all elements of performance required by the procurement documents, and it forms the basis for bid evaluation. In a bill of quantities, the total price is the sum of all unit prices multiplied by the respective quantities (item prices), plus any lump-sum prices and ancillary services. In a lump-sum bid, the total price is given as a fixed amount without breakdown into individual items.
The total price is of central importance for bid evaluation, since – alongside other award criteria such as quality or delivery time – it largely determines which bidder wins the contract.
Total price and unit price
Under a unit-price contract, the total price is calculated from the products of quantity and unit price for each item, summed to a total amount. If the actual quantities executed deviate from the tender quantities, the final billed amount changes, but the unit price remains unchanged in principle. Under a lump-sum contract, the contractor bears the quantity risk; the total price remains constant.
Net and gross total price
Procurement documents generally require both the net total price (excluding VAT) and the gross total price (including VAT) to be stated. For bid evaluation under public procurement law, the net amount is generally used, since public contracting authorities may be entitled to input VAT deduction or because bidders from other EU countries have different tax obligations.
Significance for bid evaluation
An unusually low total price can indicate a speculative or non-cost-covering bid and triggers the duty to clarify. Under § 131 BVergG 2018 (Austria) or § 60 VgV (Germany), where the total price is abnormally low, the contracting authority must request written clarification from the bidder before excluding the bid.
FAQ
Is the total price always the decisive evaluation criterion? No. In best-bidder procedures, the total price is only one criterion among several. It may, however, be heavily weighted and effectively decisive.
What happens if the total price is incorrectly calculated? Calculation errors in a bid are generally not curable. The contracting authority must normally exclude the bid if the total price has been incorrectly determined by the bidder and the error is more than a mere obvious slip.
Can a bidder change its total price after the bid opening? No. After the bid opening, substantive changes to the bid – particularly to the total price – are inadmissible and would lead to the bid being excluded.
Last updated: January 2026 All information provided without guarantee. For legally binding advice, please consult a law firm specialising in procurement law.
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