What is a Works Contract?
A works contract (German: Bauauftrag) is a public contract for the execution or design and execution of construction works. It is the third basic category alongside supply and service contracts.
Legal Basis
Defined in § 103(3) GWB: Public works contracts cover the execution or simultaneous design and execution of construction works or a structure resulting from civil or building works fulfilling an economic or technical function.
What are Construction Works?
Construction works under § 1 VOB/A include building construction, civil engineering (roads, bridges, tunnels), interior finishing, building services (HVAC, electrical), demolition, and maintenance/renovation.
Threshold
The EU threshold for works contracts is €5,538,000 net — significantly higher than for supply/service contracts. Most construction contracts are therefore awarded below threshold under VOB/A Section 1.
Special Features
Lot division: Construction contracts are typically divided into trade lots (§ 5 VOB/A), with each trade tendered as a separate lot.
Suitability assessment: Special requirements include trade register entries, pre-qualification via the PQ register, and references for comparable construction work.
Bid opening: Under VOB/A, a formal opening session takes place where bidders may be present.
Construction Contract Law
After award, special contract rules apply: VOB/B (general conditions for construction), BGB §§ 650a–650h (construction contract law since 2018), and warranty periods of 4 years (VOB/B) or 5 years (BGB).
Practical Tip
Construction contracts offer great opportunities for SMEs due to mandatory trade lot division. Patterno automatically identifies trade lots and our construction calculation agent supports fast bid preparation.