Trade Lot Award in Public Procurement Law 2026

Trade lot award: division of construction contracts by trade. SME protection through lot division under German and Austrian procurement law.

Definition: The trade lot award (German: Fachlosvergabe, also: Gewerkvergabe) refers to the division of construction contracts into individual trade lots required by procurement law, corresponding to the trades or technical disciplines involved, in order to enable small and medium-sized enterprises (SMEs) to participate in public competition.

Last updated: January 2026 · Legal basis: § 97(4) GWB, § 5 VOB/A, § 58 BVergG 2018, Art. 46 Directive 2014/24/EU

What is the trade lot award?

The trade lot award is a central instrument of SME protection in public procurement: it ensures that not only general contractors but also specialised trade firms can win public contracts. Instead of awarding an entire construction contract as a single unit, it is divided into technically defined sub-lots – so-called trade lots – each of which can be awarded to a specialised company. Typical trade lots in construction projects include shell construction, electrical installation, heating-ventilation-sanitary (HVS), roofing, or painting work.

In Germany, the obligation to divide contracts into lots derives from § 97(4) GWB and § 5 VOB/A. In Austria, § 58 BVergG 2018 governs the principles of lot division. At EU level, Art. 46 of Directive 2014/24/EU provides for the option of lot-based awards and requires contracting authorities to give a justification where they refrain from dividing a contract into lots.

Trade lots and regional lots

Procurement law distinguishes between trade lots (division by trade) and regional lots (geographical division by region) – both serve the same fundamental purpose of SME protection.

In the trade lot award, the distinction is made by the type of service. In the regional lot award, by contrast, a geographically extensive contract is divided regionally. Both forms can be combined.

When may a contracting authority depart from lot division?

The obligation to divide a contract into lots is not absolute: contracting authorities may, on objectively justified grounds, award contracts to a general contractor as a single award.

Acceptable grounds for a single award without lot division can include:

Economic or technical inseparability of the services
Disproportionate coordination effort if divided into lots
Increased risk for the contracting authority due to inadequate interface coordination
Particular requirements of secrecy protection

In Germany, the contracting authority must document and justify the decision against lot division pursuant to § 97(4) GWB. In Austria, a similar duty to give reasons applies under § 58(2) BVergG 2018.

Lot division and bidder eligibility

A company can bid for several trade lots, provided the contracting authority permits this; the contracting authority may, however, also restrict the award of several lots to the same bidder.

Pursuant to Art. 46(2) Directive 2014/24/EU, contracting authorities may limit the number of lots that a single bidder may be awarded. This rule is intended to prevent a large company from winning all trade lots through cross-subsidisation and thereby undermining SME protection.

Related terms

FAQ

Is the trade lot award mandatory in the above-threshold area? Yes, as a rule. Contracting authorities must divide contracts into trade lots or document and justify the grounds for a single award.

Can a bidder bid for all trade lots simultaneously? As a rule, yes, provided the contracting authority has not laid down any restriction. The contracting authority may, however, limit the maximum number of lots that can be awarded to a single bidder.

What is the difference between a trade lot award and a general contractor award? In a trade lot award, the contracting authority concludes direct contracts with several specialised trade companies. In a general contractor award, the authority commissions a general contractor, who in turn coordinates subcontractors.

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