Vadium in Procurement Law
Vadium is the Austrian term for the bid security a bidder lodges as a deposit before the contract is awarded.
Definition: Vadium is the term used in Austrian procurement law (§§ 108 et seq. BVergG 2018) for the bid security – i.e. the security that the contracting authority may require from the bidder, typically up to 5 % of the bid price, which guarantees the seriousness of the bid and is forfeited if the bidder unjustifiably withdraws or fails to conclude the contract.
Last updated: January 2026 · Legal basis: §§ 108 et seq. BVergG 2018 (Austria)
What is the Vadium?
Vadium is a specifically Austrian term in procurement law and refers to the bid security that a contracting authority may require from bidders before or together with the submission of the bid. It is a financial safeguard in favour of the contracting authority that ensures the bidder does not withdraw its bid without good reason and does not refuse to conclude the contract after award. The legal basis in Austria is §§ 108 et seq. BVergG 2018.
The amount of the vadium is to be set by the contracting authority in the tender documents and is typically 5 % of the bid price, but must not exceed that rate. Permissible forms of security are in particular bank guarantees, surety insurance and cash deposits. The specific form is to be stated in the tender documents. In Germany, the equivalent is called bid security (Bietungssicherheit) and is governed by § 7 EU VOB/A and the relevant state procurement statutes.
Significance in the procurement procedure
The vadium protects the contracting authority from the risk that a bidder, after submitting its bid, withdraws without justification and thereby delays the procurement procedure or causes it to fail. If the bidder withdraws from its bid without good reason, or refuses to conclude the contract after award, the vadium is forfeited to the contracting authority; any further damages claims are unaffected.
The vadium must be returned after the procurement procedure has been completed: to the successful bidder generally after signature of the contract and provision of any performance guarantees, and to the other bidders at the latest after the standstill period has expired or the award decision has become final. Contracting authorities are not always required to demand a vadium; in sub-threshold procurements it is often dispensed with.
Related terms
Last updated: January 2026 All information without guarantee. For legally binding advice, please consult a law firm specialised in procurement law.
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