Prequalification

Prequalification (PQ) is the upstream, contract-independent verification of a company's suitability for public contracts. Instead of resubmitting the same evidence for every tender, a company is assessed once by a recognised body and entered in a register. In the bid it then only references its PQ number, and the public authority retrieves the verified documents online.

Prequalification covers exactly the three pillars that individual proof also requires: technical capacity (registration in a trade or professional register), economic and financial standing (turnover, staff, financial position) and reliability (no exclusion grounds, clearance certificates). PQ is therefore a pre-verified bundled proof for the suitability criteria demanded in a tender.

Germany has two separate systems, depending on the type of service:

• Works (VOB/A): The construction prequalification register is run by the Association for the Prequalification of Construction Companies (PQ-Verein). The actual assessment is carried out by independent, accredited prequalification bodies competing in the market. The register is publicly available at pq-verein.de.
• Supplies and services: Here the Official Register of Prequalified Companies (AVPQ) applies, run by the Chambers of Industry and Commerce (IHK) as a governmental task.

An important distinction: prequalification is voluntary and not a procurement procedure in its own right. It should not be confused with the participation stage of a restricted procedure, where suitability is assessed specifically for a single contract. PQ works across contracts: once registered, a company can rely on its entry in any number of procedures, as long as the filed evidence remains current.

However, the entry does not necessarily replace every individual proof. If the authority requires contract-specific evidence (such as particular references for a special structure), this must be provided in addition. PQ covers the "baseline" of suitability; companies cover specialised requirements via a well-maintained reference list.

Prequalification is anchored in several sets of German procurement rules, separated by type of service.

Works: For construction contracts, § 6a EU VOB/A governs the required suitability evidence and § 6b EU VOB/A the means of providing it. Suitability, including the absence of exclusion grounds, can be proven by the entry in the PQ-Verein's prequalification register, which the public authority can retrieve directly. Crucially, the data filed in the register may not be challenged by the authority without justification. Equivalent registers of other EU member states are also accepted. Below the EU thresholds the parallel provisions of Section 1 of the VOB/A apply.

Supplies and services: Above the EU thresholds, suitability is governed by § 122 GWB and § 48 VgV. Under § 48 (8) VgV, official registers of prequalified companies, for example run by the IHKs, may be set up; for registered companies a presumption of suitability applies: the filed documents are "only challenged in justified cases". Below the thresholds, § 35 UVgO performs this function for supplies and services.

Relationship to self-declaration and the ESPD: As preliminary proof of suitability the authority generally requests self-declarations; above the thresholds the European Single Procurement Document (ESPD) under § 50 VgV is used. Prequalification is the permanently verified alternative: where a self-declaration is only a provisional assurance that must later be confirmed by certificates, the PQ evidence has already been conclusively checked and filed.

The filed suitability evidence itself sits in the password-protected part of the register; publicly visible are only the company's name, address, service areas and registration number.

A medium-sized civil-engineering firm from Lower Saxony regularly bids on municipal construction contracts under VOB/A, from sewer construction to road resurfacing. Until now the office compiled the same suitability folder for every tender: commercial register extract, clearance certificates from the tax office, trade association and health insurer, turnover statements for the last three years, liability insurance and three references. Each bid cost about half a working day, and several times the firm was excluded because a certificate had expired.

The firm decides to prequalify via a PQ body of the PQ-Verein. After the one-time assessment it receives a PQ number and is listed in the public prequalification register. At the next municipal tender for a sewer rehabilitation, the company now only states its PQ number in the bid. The authority retrieves the verified evidence online; resubmitting the standard documents is no longer necessary. Only for a demanding special structure does the city require an additional, project-specific reference, which the firm supplies separately.

For construction and energy companies, PQ-VOB is especially valuable because it is mandatorily recognised here (see also Construction & Infrastructure). With Patterno HIT the firm then automatically finds all matching tenders across the fragmented procurement portals, so the time saved through PQ flows directly into more qualified bids.

• Treating PQ as a cure-all. Prequalification covers the baseline of suitability, but not contract-specific requirements. If a tender demands particular references or certificates, these must be provided in addition despite the PQ.
• Not stating the PQ number. A company that is prequalified but does not reference its entry in the bid forfeits the advantage. The PQ number belongs visibly in the bid or in the required forms.
• Missing the update. A PQ is not a permanent status. If filed evidence (e.g. clearance certificates) expires or the annual fee goes unpaid, the company risks removal from the register, often unnoticed until the next bid.
• Choosing the wrong system. PQ-VOB (works) and AVPQ (supplies/services) are separate. A pure construction firm needs PQ-VOB; a company that also offers services may need both registrations.
• Failing to report material changes. A change of managing director, a new legal form or a significant drop in turnover must be reported to the PQ body. If this is omitted, the presumption of suitability can lapse in a critical case.

• Use PQ once you bid regularly. Companies handling at least three public tenders a year regularly recoup the effort for prequalification through the time saved. For occasional participation a self-declaration may suffice.
• Maintain a central suitability folder. Keep all PQ-relevant documents, register extract, insurance, clearance certificates and current references, in one central folder with a semi-annual update. This speeds up both the initial assessment and the annual renewal.
• Track renewal dates in the calendar. Set reminders for expiring certificates and the annual fee so that the entry remains continuously valid.
• Keep references continuously updated. Add new, comparable projects to your reference list and PQ profile on an ongoing basis so you can also cover more demanding contracts.
• Know and use the presumption of suitability. In case of queries, actively cite § 48 (8) VgV or § 6b EU VOB/A: the authority may only challenge the filed evidence in justified cases. A full walkthrough is provided in the guide How to apply for prequalification.