Section 123 GWB (German Act against Restraints of Competition) sets out mandatory grounds for excluding a company from a procurement procedure. It is separate from the question of whether the company is professionally suitable. You can find the context on suitability under Section 122 GWB and the process in the GWB practice guide. Section 123 GWB
Legal and source status: September 5, 2026.
Which cases does Section 123 cover?
Subsection 1 lists a catalog of criminal offenses, for example corruption offenses, money laundering and certain cases of fraud and subsidy fraud against EU budgets. The condition is that the contracting authority knows of a final conviction of a person whose conduct is attributable to the company, or of a final corporate fine under Section 30 OWiG (Administrative Offenses Act) for a catalog offense. Comparable foreign decisions are treated the same way. Section 123 subsections 1 and 2 GWB
Attribution under subsection 3 is linked to management responsibility, including certain supervisory and control powers. Not every act of any employee automatically meets this attribution rule. Section 123 subsection 3 GWB
Check taxes and social security contributions separately
Subsection 4 covers breaches of obligations to pay taxes, levies or social security contributions. Here, a final court decision or a final administrative decision is not the only possible proof. The contracting authority can also prove the breach in another suitable way. Section 123 subsection 4 GWB
The provision also states that this ground for exclusion does not apply if the company has paid or has committed to pay, including interest, late payment surcharges and penalties. Subsection 5 contains further limited exceptions. So even for mandatory grounds for exclusion, check all statutory conditions. Section 123 subsections 4 and 5 GWB
Fictional example: The finance department spots arrears in contributions. The bid team should neither declare without checking that there is no relevant matter nor give up right away. It has the amount, the status of the proceedings and any payment or payment commitment documented and has the significance under procurement law checked.
What does self-cleaning achieve?
A company can avoid exclusion through self-cleaning under Section 125 if it proves the statutory requirements. These include compensating for the damage or committing to do so, actively helping to clarify the facts, and concrete technical, organizational and personnel measures against repeat misconduct. A mere declaration of intent is not enough. Section 125 GWB
Section 126 also limits the permitted exclusion period without sufficient self-cleaning. For grounds under Section 123, it is at most five years from the final conviction. For Section 124, it is at most three years from the relevant event. This is not a blanket five-year exclusion for every problem. Section 126 GWB
Practical check before the self-declaration
- Have management and the responsible department confirm relevant matters.
- Separate suspicion, ongoing proceedings, final decisions and measures already taken.
- Record the evidence and a person responsible for follow-up questions.
- For partners involved, check the specific declarations required. The subcontractor guide helps with this.
Link open points to your decision to bid before a declaration is submitted.
Frequently asked questions
Does every suspicion of a criminal offense lead to exclusion under Section 123 GWB?
No. For the offenses listed there, subsection 1 requires a final conviction of an attributable person or a final corporate fine. Other grounds for exclusion, especially under Section 124, must be checked separately.
Is an exclusion under Section 123 GWB permanent?
No. Self-cleaning and statutory exceptions can be relevant. For grounds under Section 123 without sufficient self-cleaning, Section 126 limits the exclusion to at most five years from the day of the final conviction.