What does bid validity period mean?
The bid validity period (Bindefrist), also called the award period (Zuschlagsfrist), is the period after the bid deadline expires during which the submitted bids remain binding for the contracting authority. During this period, the bidder is bound by its bid and can neither withdraw it nor change its content. The contracting authority can award the contract during the bid validity period without needing the bidder's renewed consent.
The bid validity period must be stated clearly in the procurement documents. Its length should be reasonable and reflect the time the contracting authority is likely to need for evaluating the bids, informing the bidders and awarding the contract. An unreasonably long bid validity period can restrict competition, because it means a higher risk for bidders, especially regarding price fluctuations for materials and staff. In practice, bid validity periods often range between 30 and 60 days after the bid deadline expires.
If the bid validity period expires without the contracting authority having awarded the contract, bidders are no longer bound by their bids. In this case, the contracting authority can ask bidders to extend their bid validity period voluntarily. The extension requires the express consent of the bidder, who can either maintain the bid unchanged or decline the extension. A unilateral extension of the bid validity period by the contracting authority is not allowed.
Relevance for bidders
Bidders must take the bid validity period into account in their pricing, because they are bound by the prices and conditions offered during this period. Especially in volatile markets, with long delivery times or project-based staff planning, a long bid validity period can be a significant economic risk. Bidders should therefore check whether the stated bid validity period is reasonable and, if necessary, push for a shorter period through bidder questions.
If an extension of the bid validity period is requested, bidders should weigh carefully whether the original pricing is still viable. Declining the extension means the bid drops out of the evaluation, but it protects you from uneconomic commitments.
Legal framework
The bid validity period is governed by Section 18 VOB/A (Construction Contract Procedures, Part A) and by the contracting authority's procurement documents. Under the VgV (Public Procurement Ordinance), the binding effect follows from the general principles of procurement and contract law. The contracting authority must set a reasonable bid validity period and may award the contract only within this period. The information obligation under Section 134 GWB (German Act against Restraints of Competition, standstill period) must be taken into account when setting the bid validity period.