Section 103 GWB (German Act against Restraints of Competition) answers what counts as a public contract and which contract type a purchase belongs to. Among other things, the matching threshold and the further set of rules depend on this classification. The overview of GWB Part 4 shows the full order of checks. Section 103 GWB, Section 106 GWB
Legal and source status: September 5, 2026.
How do you recognize a public contract?
Section 103 requires a contract for pecuniary interest covering a purchase between a public contracting authority or sector contracting entity and a company. Under the current version, both parties commit in a legally binding way to performance and consideration. Their fulfillment must be enforceable in court. Section 103 (1) GWB
So look at the content of the contract. For a first classification, note: Who is buying? Which specific service is owed? What does the company receive in return? Which obligations can the other party enforce? A label like "cooperation" does not answer these questions.
Supply, works and service contracts
| Contract type | Typical content | Fictional example |
|---|---|---|
| Supply contract | Purchase of goods, also by rental or leasing. Ancillary services are possible | Leasing of desktop computers |
| Works contract | Execution, or design and execution, of construction work or of a structure | Construction of a sports hall |
| Service contract | Services that are neither supply nor works contracts | Ongoing IT support |
The distinction follows Section 103 (2) to (4) GWB. Pure design work is therefore not automatically a works contract just because it concerns a building.
If a contract contains different services, its main subject matter generally decides. For a mix of supplies and services, this depends on the higher estimated value. That is not a blanket calculation rule for every possible combination with construction work. Section 110 GWB
Framework agreement: terms for later contracts
A framework agreement sets terms for contracts within a certain period, in particular on price. Its award is generally subject to the same rules as the corresponding public contracts. For estimating the contract value under the VgV (Public Procurement Ordinance), the estimated total value of all planned individual contracts over the term counts. Section 103 (5) GWB, Section 3 (4) VgV
From a business perspective, also check which quantities are firmly committed and how call-offs work. An attractive estimated quantity should not go unchecked into your bid/no-bid decision as guaranteed revenue.
What about concessions and design contests?
For concessions, the transfer of a real operating risk is the key factor. The definition is in Section 105. Section 103 (6), by contrast, describes design contests as procedures in which a jury helps arrive at a plan or design by comparison. A normal bid evaluation is therefore not a "design contest" in this specific legal sense. Section 105 GWB, Section 103 (6) GWB
Frequently asked questions
What is a public contract under Section 103 GWB?
A public contract is a contract for pecuniary interest between a public contracting authority or sector contracting entity and a company for the purchase of supplies, works or services. Performance and consideration must be legally binding and enforceable in court.
Is a framework agreement covered by procurement law?
Yes. Section 103 (5) defines framework agreements. Their award is generally subject to the same rules as corresponding public contracts, unless otherwise provided.
First classify the contracting authority and the contract. Then check the applicable threshold.