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Procurement ProcessAdvanced15 min read

Forming a Bidding Consortium

When and how to form a bidding consortium – legal basics, agreements, and practical tips.

Steps Overview

  1. 1

    Assess Need for a Consortium

    Assess whether a consortium is necessary and beneficial – e.g., for missing references or capacities.

  2. 2

    Select Partners

    Choose partners with complementary competencies and verify their reliability and eligibility.

  3. 3

    Draft Consortium Agreement

    Create a legally sound agreement defining roles, service shares, liability, and the authorized representative.

  4. 4

    Coordinate Eligibility Evidence

    Coordinate the compilation of eligibility evidence from all partners and verify completeness.

  5. 5

    Create Joint Bid

    Create a unified bid and ensure all partners sign the declarations.

  6. 6

    Plan Internal Organization

    Plan internal project organization in case of award – communication, billing, liability.

Forming a Bidding Consortium

A bidding consortium (Bietergemeinschaft) allows multiple companies to jointly bid on a tender. This is particularly useful when a single company cannot meet all eligibility requirements alone.

When Is a Consortium Useful?

  • Missing references in specific areas
  • Capacity constraints for large contracts
  • Need for complementary competencies
  • Regional knowledge requirements

Legal Framework

The consortium is recognized under procurement law (§ 43 VgV). It forms a civil law partnership (GbR) with joint and several liability. One partner is designated as the authorized representative.

The Consortium Agreement

The internal agreement should cover: partner details, authorized representative, service shares, liability arrangements, profit/loss distribution, communication processes, and exit provisions.

Eligibility Evidence

Special rules apply: each partner must submit self-declarations individually, revenue figures are typically combined, references can come from any partner, and technical capability is assessed jointly.

Common Mistakes

  1. Late formation – start partner search early
  2. Unclear service boundaries
  3. Missing individual declarations from each partner
  4. Antitrust issues if partners could bid independently
  5. Poor internal coordination

Alternative: Subcontractors

Consider using subcontractors instead if you want to remain sole contractor. Capability lending (§ 47 VgV) allows relying on third-party capacities in certain cases.

Related Guides

Bidding Phase

How to Write a Tender Bid

Qualification

Proving Eligibility Criteria

Procurement Process

Creating a Participation Request

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