Types of Public Contracts in Public Procurement Law

Public contracts are divided into three main categories: works contracts, supply contracts and service contracts – with different thresholds.

Definition: Types of public contracts are the legally defined categories of public contracts – works contracts, supply contracts and service contracts – which determine both the applicable thresholds and specific procedural rules.

Last updated: January 2026 · Legal status: Art. 2 Directive 2014/24/EU, BVergG 2018, GWB/VgV

What are types of public contracts?

The classification of public contracts into contract types is not a mere matter of systematics but directly determines which thresholds, procurement procedures and rules apply. Art. 2 of Directive 2014/24/EU defines three main categories. The Austrian BVergG 2018 and the German GWB transpose this categorisation into national law.

The correct classification of the planned procurement project into a contract type is therefore the first and fundamental step in every procurement procedure.

Significance and Function

The contract type is the central classification criterion in procurement law that pre-determines the entire further procedural design.

Works Contracts

Works contracts cover the execution, or the design and execution combined, of works or a work. The decisive provision is Art. 2(1)(6) Directive 2014/24/EU. Covered are:

Execution of works in accordance with Annex II of the Directive
Execution of a work meeting the contracting authority's requirements
Procurement of a work by a third party in accordance with the contracting authority's requirements

The EU threshold for works contracts is EUR 5,538,000 (as of 2024). In Austria, § 4 BVergG 2018 governs the concept of works contracts; in Germany, § 103(3) GWB. Below the EU thresholds, the award is governed in Austria by the BVergG 2018 (sub-threshold area) and in Germany by VOB/A.

Supply Contracts

Supply contracts cover the purchase, leasing, rental or hire-purchase of goods, possibly including ancillary work. The decisive factor is that the supply of goods is the characteristic element of the contract. Typical examples include the procurement of office supplies, vehicles, IT hardware, or medical products.

The EU threshold for supply contracts is EUR 221,000 for central government authorities and EUR 221,000 for other contracting authorities (federal central authorities: EUR 143,000).

Service Contracts

Service contracts cover all contracts that are neither works nor supply contracts and have a service as their subject matter. The distinction from supply and works is determined by the predominant content of the contractual performance. Typical service contracts include cleaning services, IT maintenance, expert opinions, consultancy services or security services.

The EU threshold corresponds to that for supply contracts (EUR 221,000 or EUR 143,000).

Delineation and Mixed Contracts

If a contract contains elements from several contract types, it must be classified according to its predominant subject matter. Art. 3 of Directive 2014/24/EU, in Austria § 8 BVergG 2018 and in Germany § 110 GWB govern the treatment of mixed contracts.

The value method is decisive: the contract value of the predominant element determines the classification. An exception applies where the various parts are objectively separable – in that case, separate procurement may be useful or even required.

Particularly relevant in practice is the delineation between supply and service contracts in complex IT contracts, and between service and works contracts in maintenance and upkeep contracts.

Legal Basis

Contract types are clearly defined both at EU and at national level.

EU: Art. 2(1)(6)–(8), Art. 3 Directive 2014/24/EU; Annex I and II of the Directive
Austria: §§ 4–8 BVergG 2018; BVergGVS 2012 (for the defence sector)
Germany: § 103(2)–(4) GWB; §§ 2, 3 VgV; § 1 VOB/A; § 1 UVgO

Related Terms

FAQ

How is a contract for the supply and installation of machinery classified? If the supply of the machine is the predominant element by value, it is a supply contract. If the installation service predominates, a service contract may exist. Where inseparable works (e.g. foundation works) are involved, a works contract may also be applicable. The decisive factor is always the value comparison of the individual service elements.

Does VOB/A or the BVergG works contract regime always apply to works contracts? Yes, provided the subject of the contract qualifies as a works contract within the meaning of the statute. Below the EU thresholds, the sub-threshold rules apply: in Austria, the direct-award and negotiated-procedure limits of the BVergG 2018; in Germany, VOB/A Section 1 and the UVgO for supplies and services.

Can parts of a mixed contract be tendered separately? Yes. If the elements of a mixed contract are objectively separable, the contracting authority can and should consider whether separate procurement is objectively warranted. Where parts are not separable, the applicable regime is determined by the predominant subject of the contract.

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