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Public Tenders in Germany: A Comprehensive Guide

31.01.24

By:

Johnathan Morris

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Public tenders in Germany play a crucial role in driving economic growth and fostering innovation.

This comprehensive guide delves into the intricacies of public procurement in Germany, equipping you with the knowledge you need to navigate this dynamic landscape.


Tender Methods:

  • Open Tender: This is the most common method, open to all eligible bidders. The contract is awarded to the bidder submitting the economically most advantageous offer.

  • Restricted Tender: Only pre-selected bidders are invited to participate. The contract is awarded to the bidder submitting the most compliant and advantageous bid.

  • Negotiated Procedure: This method involves negotiations between the contracting authority and one or more bidders. It is typically used for complex contracts or when technical specifications are difficult to define in advance.

  • Competitive Dialogue: A multi-stage procedure involving a dialogue with potential bidders to refine the project and identify the most suitable solution.

Budget Distribution for Public Tenders in 2021 and 2024:

In 2021, the total budget allocated for public tenders in Germany was approximately 440 billion euros. The sectoral distribution of this budget was as follows:

  • Construction: 30%

  • Services: 25%

  • Supplies: 20%

  • Other: 25%

For 2024, the projected budget is expected to reach 480 billion euros, reflecting ongoing investments in infrastructure, digitalization, and sustainability initiatives.

Top Companies Receiving Public Tenders:

The top 5 companies receiving the most public tenders in Germany in 2021 are:

  1. Siemens (Technology)

  2. Bosch (Technology)

  3. Volkswagen (Automotive)

  4. Bilfinger (Construction)

  5. Deutsche Bahn (Transportation)

Considerations for Contractors:

  • Thorough Review of Tender Documents: Carefully examine the tender documentation to fully understand the requirements, terms, and conditions.

  • Meticulous Bid Preparation: Prepare a comprehensive and compliant bid that addresses all evaluation criteria and demonstrates your qualifications.

  • Timely Submission of Documents: Ensure timely submission of all required documents, including technical specifications, financial statements, and certifications.

  • Adherence to Contract Terms: Upon contract award, strictly adhere to all agreed-upon terms, conditions, and timelines.

Conditions for Foreign Contractors:

  • EU Membership: Non-EU companies must meet specific requirements and demonstrate their capacity to deliver the project effectively.

  • Registration with German Authorities: Register with the relevant German authorities, obtain necessary permits, and comply with tax regulations.

  • Financial Capacity: Prove sufficient financial resources to undertake the project and meet potential liabilities.

  • Technical Expertise: Demonstrate the necessary technical expertise, experience, and qualifications to execute the project successfully.

Additional Resources:

This blog post provides a general overview of public tenders in Germany. For more detailed information and guidance, please refer to the official resources mentioned above.

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