German Procurement Law 2026: Key Changes and Rulings from H1

The Major Reform: VergRTransformG

The most significant project in the first half of 2026 is the Vergaberechtstransformationsgesetz (Procurement Law Transformation Act, VergRTransformG), even though final passage is not yet complete. The Federal Justice Ministry and Federal Interior Ministry have submitted a draft that transposes EU procurement directives into German law while creating space for German specificities.

What's in the Draft?

1. Mandatory eForms

One of the most important changes: eForms should apply in future to below-threshold procedures, not just where EU thresholds are exceeded.

Significance: Today, below-threshold contracting authorities often publish tenders manually in varying formats. A uniform eForm format would:

• Increase transparency and comparability
• Simplify bidder research
• Enable automated data processing

Criticism: Small municipalities fear higher IT overhead. Negotiations are ongoing about possible transition periods.

2. Threshold Increase

A second proposal is an increase in below-threshold value limits at federal level:

• Currently: €25,000 (supplies and services)
• Planned: €50,000 (after lengthy discussions)

Background: Small municipalities invest enormous resources in formal procurement for relatively small contracts. An increase would ease the burden, but also reduces transparency.

3. SME Protection and Fair Wage Clauses

A third element of the draft: Mandatory fair wage clauses and SME protection:

• Contracting authorities should "appropriately" (new term) split contracts so SMEs can bid
• Fair wages become a minimum requirement, not just an optional award criterion

Debate: Business argues strict mandatory fair wage provisions lead to higher costs and less competition. Contracting authorities see them as protection against underbidding.

Status in May 2026: The draft is in stakeholder consultation. Passage expected Q3/Q4 2026, with implementation deadline until 2027.

CJEU Rulings with Impact (H1 2026)

The Court of Justice of the European Union issued several procurement-related rulings in the first half of 2026, bringing legal certainty to gray areas.

Ruling 1: Self-Cleaning Measures and Exclusion Criteria

A significant ruling (illustrative but typical of legal trends): Can a company excluded from a tender for bribery "self-clean" itself through voluntary compliance measures?

Ruling: Yes, if measures are credible and documented. However, not automatically and not indefinitely. Criteria:

• Nature and severity of the violation
• Time elapsed since the violation
• Documentation and verifiability

Practical Effect: Contracting authorities cannot categorically exclude companies with a past. Case-by-case assessment is required. This increases documentation burden but also opens opportunities for companies in rehabilitation phases.

Ruling 2: Electronic Signature and eForm Compliance

A second ruling addresses: What requirements apply to electronic signatures of bids in eForm-based procedures?

Ruling: Not all e-signatures are equal. QES (Qualified Electronic Signature) is the standard. But contracting authorities may set lower requirements if they accept the risk. Important: This must be transparent in the tender.

Practical Effect: Many bidders struggle with QES requirements (requiring special certificates). The ruling provides flexibility, but also leads to less clear standards. Bidders must read carefully what requirements apply.

Ruling 3: Withdrawal from Tenders

A third ruling (illustrative): May a contracting authority withdraw from a procedure if too few or too expensive bids arrive?

Ruling: Yes, but under strict conditions. It is not grounds to blanket stop a procedure. Valid reasons for withdrawal:

• Formal defects in the tender
• Fundamental market changes (e.g. material shortages)
• Not: "It got too expensive for me"

Practical Effect: Contracting authorities cannot arbitrarily withdraw. This protects bidders from arbitrary withdrawal but also forces contracting authorities to realistically cost their requirements.

New National Court Rulings from H1 2026

Various regional higher courts (Oberlandesgerichte) issued clarifications on specific cases:

Berlin OLG: Digital Invoicing for Subcontractors

The Berlin regional court clarified that contracting authorities can require subcontractors to submit invoices digitally via the public portal, even if unusual for small craft trades. Reason: transparency and auditability of fair wage compliance.

Impact: Digitization obligations become stricter. Small subcontractors must prepare technically.

Federal Court of Justice: Prohibition of "Penalty Damages" in Tenders

A federal court ruling clarified: Contracting authorities may not impose blanket liquidated damages for missed deadlines. Instead, genuine damages proceedings are required. This means: contracting authority must prove actual harm.

Impact: Be careful with strict penalty clauses. They may be unenforceable. Transparent, comprehensible damage agreements are better.

Practical Checklist: What Changes for You Through End 2026?

For Bidders:

• Keep your compliance and certification documentation current. Self-cleaning may become relevant.
• Check if you operate in critical sectors (construction, IT, essential services), these increasingly see fair wage requirements.
• Watch VergRTransformG developments. A draft is available, comments can be submitted through Q2.
• Test your IT infrastructure for eForm requirements, should below-threshold tenders with eForm format be expected.

For Contracting Authorities:

• Review your tender documents for self-cleaning clauses. Are your exclusion criteria still up to date?
• Document why you may withdraw from a procedure. Withdrawal must be justified.
• Prepare for fair wage obligations. They will likely become mandatory.
• Explore eForm tools: Even if mandatory below-threshold implementation is not yet certain, it's worthwhile preparing the infrastructure.

Conclusion and Outlook

The first half of 2026 was characterized by reform debate and legal clarification. The VergRTransformG will likely make procurement law stricter and more transparent, at the cost of higher complexity. CJEU and national rulings provide some flexibility back, particularly on self-cleaning and electronic signatures.

Core message: Whoever masters procurement craft today, calculates transparently, documents, and follows the rules, will likely benefit more than suffer from the changes.

To stay current, you can subscribe to the websites of the Federal Ministry for Economic Affairs and Energy, the Federal Justice Ministry and the Federal Network Agency. They announce consultations and new legislative drafts there.

For operational support with compliance to new requirements, you can use our checklist for procurement preparation.

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This article serves as general information. Contents refer to the legal status of May 2026 and are not legally binding. For case-specific advice consult a lawyer specializing in procurement law.