Trade Authorisation (Befugnis) in Procurement Law
Trade authorisation: trade- and profession-law licensing as suitability evidence in Austrian procurement law. Trade licence, civil engineer authorisation. § 68(1) BVergG 2018.
Definition: In Austrian procurement law, the trade authorisation (Befugnis) is an undertaking's trade-law or profession-law licence to perform a specific activity – in particular the trade licence (Gewerbeberechtigung) or civil engineer authorisation (Ziviltechnikerbefugnis) – the evidence of which may be required as a suitability prerequisite for participation in public procurement procedures.
Last updated: January 2026 · Legal status: § 68(1) BVergG 2018, Trade Code (GewO) 1994, Civil Engineers Act 2019
What is the trade authorisation in procurement law?
The trade authorisation is a core – and distinctively Austrian – suitability criterion in procurement law: it ensures that only undertakings holding the required trade-law or profession-law licence to perform the activity in question can participate in public procurement procedures and obtain contracts.
In Austria, the performance of many economic activities is subject to state-issued authorisation. The most important forms are:
- Trade licence (Gewerbeordnung 1994): authorisation to carry on trades (e.g. master builder, electrician, IT service provider)
- Civil engineer authorisation (Civil Engineers Act 2019): authorisation for architects and consulting engineers
- Profession-law licences: e.g. for lawyers, auditors, physicians
A German counterpart to the Austrian Befugnis does not exist in this form: while Germany has its Trade Code and professional licensing requirements, it does not have a unified concept of "Befugnis" as procurement-law suitability evidence.
Significance and function
The trade authorisation as suitability evidence safeguards the quality of public procurement: only authorised undertakings may provide certain services, ensuring quality assurance, liability and consumer protection.
In a procurement procedure, the contracting authority must check whether a tenderer holds the required authorisation for the service being tendered. If the authorisation is missing, the tender must be eliminated – irrespective of the price or quality of the offer.
Evidence of the authorisation is typically provided via:
- Extract from the companies register (Firmenbuch)
- Proof of the trade licence (trade register extract)
- Proof of the civil engineer authorisation (decision of the chamber)
- EMAS registration, ISO certifications, etc., depending on the required activity
In electronic procurement procedures, these proofs can be retrieved via the company register or ANKÖ (Austrian Contractor Register).
Legal basis
The trade authorisation as a suitability prerequisite is anchored in § 68(1)(1) BVergG 2018; the substantive requirements arise from the relevant profession-law statutes (GewO 1994, Civil Engineers Act 2019, etc.).
§ 68(1) BVergG 2018 lists authorisation (Befugnis), integrity (Zuverlässigkeit) and capacity (Leistungsfähigkeit) as central suitability prerequisites. Contracting authorities must verify whether candidates or tenderers hold the required professional authorisation. Failure to meet the authorisation prerequisite leads to mandatory elimination of the tender.
In EU procurement law, the Befugnis corresponds to the "requirements for the pursuit of a professional activity" under Art. 58(1)(a) of Directive 2014/24/EU. The specific design is left to the Member States; the Austrian Befugnis system is unique within the EU in its level of detail and structure.
Distinction from other suitability criteria
| Suitability criterion | Content | Legal basis (AT) |
|---|---|---|
| Befugnis | Trade-law / profession-law licence | § 68(1)(1) BVergG 2018 |
| Integrity | No exclusion grounds (clean record, tax compliance) | § 68(1)(2) BVergG 2018 |
| Financial capacity | Economic standing | § 70 BVergG 2018 |
| Technical capacity | Professional competence, references | § 71 BVergG 2018 |
Related terms
- Tenderer
- Candidate
- Tender examination
- Prohibition on double evaluation
- Joint venture
- Public tender
- Procurement procedure
- Restricted tender
- Review proceedings
- Contracting authority
FAQ
Which Befugnisse must typically be evidenced for works contracts? For works contracts, the trade licence as master builder under § 94(5) GewO 1994 is generally required. For specific trades (electrical installation, plumbing, etc.), the relevant regulated trade licences are required. For design services, the civil engineer authorisation (architect or consulting engineer) must be evidenced.
Can a joint venture jointly evidence the authorisation? Yes. In a joint venture, the required authorisation may be evidenced by each member for its respective scope of services. No single member needs to hold all required authorisations, provided that the joint venture as a whole has the necessary licences.
Is there a German counterpart to the Austrian Befugnis? A direct counterpart does not exist in Germany. German procurement law does require proof of authorisation to carry on the profession (§ 122(2)(1) GWB) but has no comparable systematic Befugnis regime as the Austrian trade licence or civil engineer authorisation.
Last updated: January 2026 All information without warranty. For legally binding advice, please consult a law firm specialising in procurement law.
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