What does contract types mean?
German and European procurement law distinguish three basic contract types (Auftragsarten): supply contracts, service contracts and works contracts. This classification is central, because it determines which procurement rules apply, which thresholds are relevant and which procedure types are allowed. Assigning a contract to the right category is therefore one of the first steps in every procurement procedure.
Supply contracts (Section 103(2) GWB, German Act against Restraints of Competition) cover the purchase, leasing, rental or hire purchase of goods. Examples include buying IT hardware, office supplies or vehicles. Service contracts (Section 103(4) GWB) cover all services that are neither supply nor works contracts, such as consulting, cleaning services or software development. Works contracts (Section 103(3) GWB) relate to the execution, or the combined design and execution, of construction work, for example building roads, buildings or infrastructure projects.
For mixed contracts that contain elements of several contract types, the classification depends on the main subject matter of the contract, determined by the share with the highest value. In practice, this distinction can be complex and requires the contracting authority to analyze the procurement need carefully.
Relevance for bidders
The correct classification of the contract type matters to bidders for several reasons. First, it determines the applicable thresholds: the EU threshold for works contracts is much higher than for supply and service contracts. Second, the contract type affects the suitability requirements the contracting authority may set. For works contracts, for example, specific prequalifications or references in construction can be required.
Bidders should check the contract type in the notice and make sure they have the required skills and evidence for the category in question. An incorrect classification by the contracting authority may be grounds for a review, especially if it led to a more favorable threshold being applied or an inadmissible procedure being chosen.
Legal framework
The legal definitions of the contract types are in Section 103 GWB. The Vergabeverordnung (VgV, Public Procurement Ordinance) governs the procedures for supply and service contracts above the thresholds, while the VOB/A (Construction Contract Procedures, Part A) applies to works contracts. Below the thresholds, the UVgO (Sub-Threshold Procurement Rules) or VOB/A Section 1 apply. The EU thresholds are adjusted regularly by regulation of the European Commission.