Trade Licence Qualification in Procurement Law 2026

Definition: Trade licence qualification (gewerberechtliche Qualifikation) is the official authorisation required under trade law (trade licence, master craftsman certificate, professional admission, etc.) to carry on a specific regulated trade or profession, which may be required as an eligibility criterion in a procurement procedure.

Last updated: January 2026 · Legal basis: § 83 BVergG 2018; § 44 VgV; GewO 1994 (Austria); GewO (Germany)

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What is trade licence qualification?

Under procurement law, the contracting authority may require as an eligibility criterion that a bidder demonstrates the trade licence authorisation needed to perform the contract. This applies in particular to regulated trades and professions whose practice requires state admission, proof of qualification or entry in a professional register. Examples include admission as an electrician, master builder, architect, lawyer or medical practitioner.

Requiring a trade licence qualification is a permissible eligibility criterion under Art. 58(1)(b) of Directive 2014/24/EU.

Austrian legal position

In Austria, the Trade Act 1994 (GewO 1994) is the decisive legal basis for regulated trades; in the procurement procedure, proof of the trade authorisation is provided by an up-to-date extract from the trade register. Regulated trades (§ 94 GewO 1994) include master builders, electricians, plumbers, master carpenters and other craft trades for which a qualification certificate is mandatory.

German legal position

In Germany, the Trade, Commerce and Industry Regulation Act (GewO), together with crafts legislation (Crafts Code, HwO), governs admission to regulated activities; proof is provided by trade registration, commercial register entry or entry in the crafts roll. Crafts requiring authorisation under Annex A of the HwO (e.g. bricklayer, electrician, plumber) require a master craftsman title or comparable qualification certificate.

Proportionality of the requirement

The contracting authority may only require trade licence qualification where it is actually necessary and proportionate to the specific subject of the contract. A blanket requirement for a trade authorisation that is irrelevant to the tendered service would be discriminatory and contrary to procurement law. The contracting authority must also recognise EU foreign professional qualifications acquired in the Member State of origin (Directive 2005/36/EC on the recognition of professional qualifications).

FAQ

Can a bidder without the required trade authorisation succeed by relying on another entity's capacities? Yes, provided that the entity whose capacities are being relied upon can itself prove the authorisation and actually participates in the performance of the contract. For strictly personal authorisations (e.g. authorisation as a chartered civil engineer), however, reliance on another entity is not possible.

Must the trade authorisation already exist at bid submission? As a rule, it must exist at bid submission, or at least it must be demonstrated that it will exist at the time of award. The contracting authority sets the precise requirements in the tender.

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