What is Estimation of Contract Value?
Estimation of contract value is a procurement law obligation for authorities to carefully determine the expected total value before starting a procedure. It is decisive for choosing the procedure type and applicable regulations.
Legal Framework
- Section 3 VgV: Estimation above EU thresholds
- Section 3 UVgO: Estimation below thresholds
- Art. 5 Directive 2014/24/EU: Calculation methods
Methods
| Method | Description |
|---|---|
| Market research | Price research with potential providers |
| Comparable contracts | Analysis of previous similar procurements |
| Cost calculation | Detailed line-item calculation |
| Expert assessment | Expert valuation for complex projects |
Rules
The estimate must be careful, in net value (excluding VAT), as of the notice publication date, and must not be manipulated. Options, lots, and framework agreement lifetime values must be included.
Consequences of Incorrect Estimation
Too low: wrong procedure chosen. Too high: unnecessarily complex procedure. Manipulation is illegal and can be challenged by bidders.
How Patterno Helps
Patterno supports market research for contract value estimation with access to historical procurement data and market prices.