What does award period mean?
The award period (Zuschlagsfrist), also called the binding period (Bindefrist or Angebotsbindefrist), is the period during which bidders are bound by the bids they submitted and the contracting authority can award the contract. Once the award period has ended, bidders are no longer obliged to stand by their bids, and the contracting authority loses the right to award the contract to these bids.
The contracting authority sets the award period in the tender documents. It should be long enough for the contracting authority to have enough time to check and evaluate the bids. At the same time, the period must not be unreasonably long, because bidders are exposed to a price risk while bound by their bid and cannot commit their capacity elsewhere. In practice, award periods are between 30 and 60 calendar days, depending on the complexity of the contract.
If the contracting authority realizes that the award period is not long enough, it can ask the bidders to extend the binding period. However, bidders are not obliged to agree to such an extension. If a bidder declines the extension, its bid drops out of the evaluation. Extending the award period requires the express consent of each bidder and cannot be ordered unilaterally by the contracting authority.
Relevance for bidders
The award period is of considerable economic importance for bidders. While bound by the bid, the bidder bears the risk of price increases for materials, staff and subcontracted work. A long award period increases this risk and should be taken into account in pricing.
When preparing a bid, bidders should pay close attention to the stated award period and check whether their prices can be held for the entire period. If you receive a request to extend the period, it is a good idea to review your pricing again. Declining the extension is allowed and can make economic sense in some cases, but it means losing the chance of winning the contract.
Legal framework
The award period is governed by Section 10a VOB/A for construction work below the EU thresholds and by Section 10a VOB/A-EU above the thresholds. For supplies and services below the thresholds, the rule is in Section 44 UVgO (Sub-Threshold Procurement Ordinance). In Section 62, the VgV (Public Procurement Ordinance) contains provisions on canceling procurement procedures, which can also become relevant if the award period ends without the contract being awarded. A reasonable award period is one of the principles of proper procurement and can be reviewed as part of legal protection.