Request for Proposals

A call for bids is the formal procedure by which a building owner or contracting authority issues a public or restricted call for bids for construction or planning services in order to receive comparable bids from companies. It forms the basis for the conclusion of a construction contract and is intended to ensure that services are evaluated according to uniform criteria and that the most economically advantageous bidder is selected. In the private sector, tendering is voluntary; for public contracting authorities, it is mandatory under the VOB/A (German Construction Contract Procedures) or EU public procurement law.

Types of Service Tenders

Depending on the contracting authority and the contract value, there are various procedures:

• Open tender (VOB/A § 3): Unlimited participation; mandatory for public contracting authorities above certain thresholds; publication in the tender bulletin or the EU Official Journal
• Restricted tender: Only pre-selected companies receive tender documents; suitable for smaller projects or special requirements
• Direct award: Direct negotiation without a formal procedure; permissible for small contract values or special expertise
• Negotiated procedure (EU procurement): For complex services where the specifications are determined only through dialogue

The EU-wide threshold for the obligation to issue a Europe-wide tender for construction services is currently €5.38 million (as of 2024). Below this threshold, public contracting authorities may proceed according to national procurement rules (UVgO, VOB/A), which are less formal but still require transparency and equal treatment.

Components of the Tender Documents

A complete tender package contains:

• Bill of Quantities (BoQ): detailed description of all work items with quantity specifications; the core of the tender
• Technical Preamble: general requirements for materials, quality, and execution standards
• Tender Documents: application conditions, forms, deadlines
• Plans and Drawings: Basis for quantity take-offs
• Draft contract: provisions regarding warranty, contractual penalties, and acceptance

Of particular importance are the Technical Preliminary Remarks, which define project-specific requirements that cannot be derived from the Specifications themselves: for example, special cleaning obligations for the construction site, requirements for site facilities, or the approval of certain products. Incomplete preliminary remarks often lead to disputes over the scope of work and incidental costs.

Evaluation and Award

Bids are selected based on the most economically advantageous bid-not necessarily the lowest price. In addition to price, quality criteria, references, and completion deadlines may be factored into the evaluation. The result is documented in a price comparison report; in public tenders, unsuccessful bidders have a right to object and request a review, which they must exercise within short deadlines.

Tendering as a Cost Control Tool

Even without a legal obligation, a structured tender is a valuable tool for cost control for private builders. By soliciting multiple bids based on a standardized scope of work, you can not only determine the lowest price but also check whether certain items are unusually expensive or cheap-an indication that a bidder has interpreted the scope differently. Deviations in the price comparison allow conclusions to be drawn about the bidder’s understanding of the calculation and help identify risks of cost overruns early on.

Practical Tip for Property Owners in Nuremberg and Franconia

Private property owners in Nuremberg and the surrounding region also benefit from a structured bidding process-especially for renovation projects exceeding 50,000 euros. The trades market in the Nuremberg metropolitan area is currently operating at full capacity; there are shortages of qualified contractors in fields such as heating installation, roofing, and electrical work. In this environment, tradespeople tend to calculate bids without detailed specifications, resulting in tight margins or hidden risks of cost overruns.

A professionally prepared bill of quantities prevents disputes over cost overruns, makes bids truly comparable, and protects against unpleasant surprises. We are happy to connect you with certified architecture and planning firms in Nuremberg, Erlangen, and Fürth that prepare tenders in accordance with VOB/B for private builders. The cost of a professional tender is typically offset by lower bid prices and the avoidance of disputes over additional work.

Frequently Asked Questions

As a private builder, do I have to issue a tender in accordance with VOB?

No. VOB is not mandatory for private builders; they are free to award contracts as they see fit. Nevertheless, it is recommended to use a scope of work for larger projects to make bids comparable and to clearly define the subject matter of the contract. Without a scope of work, subsequent discussions about the scope of services are almost inevitable.

What happens if a company increases its bid after being awarded the contract?

If the service was clearly and completely described in the scope of work, the company is bound by its bid price. Claims for additional payments are only permissible if the scope of work has demonstrably changed or unforeseen circumstances have arisen-for example, if unknown contaminated sites are discovered during the demolition of a wall. Lump-sum agreements provide additional protection for the client, as they shift quantity risks to the contractor.

Can I limit the tender to a specific company?

For private clients, yes. Public contracting authorities, on the other hand, are bound by the principles of transparency and equal treatment in tenders and may not favor individual companies without objective justification. However, restricting the tender to specific products or manufacturers is also possible in public tenders if there are objective reasons and equivalent alternatives are permitted.

How long does a tender process take?

For public tenders, statutory minimum deadlines must be observed (according to VOB/A: nationally, at least 10 days; EU-wide, at least 30 days). Private developers are free to choose their own deadlines but should allow bidders at least two to three weeks to prepare their bids-and more for complex projects. Deadlines that are too short result in poor-quality bids or prevent qualified companies from bidding.

Service Tenders for Renovation Projects

For energy-efficient renovations in Nuremberg and the metropolitan region-ranging from roof insulation and window replacement to heating system retrofits-the service tender is a particularly important tool. Funding programs such as the Federal Funding for Efficient Buildings (BEG) require that the measures be supervised by an energy efficiency expert (EEE). These experts typically also prepare the technical scope of work, which serves as the basis for the tender.

Private owners who issue a tender without professional guidance risk receiving bids from contractors with varying scopes of work-making the bids incomparable. A standardized scope of work is therefore not only advisable but often mandatory for subsidized projects. We recommend that property owners in Nuremberg always consult an architect or project manager for renovation projects costing 30,000 euros or more, who will prepare the scope of work and oversee the bidding process. The costs for this planning service are generally eligible for reimbursement through the BEG subsidy as necessary expenses.

What common mistakes should building owners avoid when issuing a call for bids?

Three common mistakes in private tenders in Nuremberg and the surrounding region: First, incomplete specifications that omit important trades or ancillary services-which later leads to claims for additional payments. Second, bid submission deadlines that are too short, which deter qualified contractors and lower the quality of bids. Third, lack of subcontractor provisions: Many general contractors subcontract partial services to subcontractors; without appropriate provisions in the contract, the builder loses control over the executing companies and their qualifications. We recommend explicitly addressing all three points during the tender planning phase.

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