Public or private? Understand the main differences
Why a city may buy differently from a private business, and why every procedure needs its own process check.
After this guide, you can …
- Identify the kind of buyer
- Distinguish open and multi-stage procedures
- Find rules in the right documents
1. The name alone does not identify the rules
Authorities normally buy under public procurement rules. An ordinary private business purchase often follows a selection process defined by the company. However, the boundary is more complex than “limited company means private”: certain privately constituted or funded bodies can be public contracting authorities. Check the notice and documents for the buyer’s identity and stated procedure. Use the designated channel to ask if the position is unclear.
2. Public procurement has several rulebooks
German rules vary with factors including contract value, subject, federal state and special sectors. Supplies and services, construction and purchases below EU thresholds can follow different provisions. The linked VgV rules explain important processes within their scope; they are not a universal rulebook for every purchase. A remembered threshold or generic deadline must never replace the requirements of the actual procedure.
3. Identify the first action required
In an open procedure, suitable businesses submit a bid directly. Other procedures begin with a participation application; selected applicants are then invited to tender. Not every procedure permits negotiation. Registering on a portal, downloading documents and formally applying to participate are separate actions. Record exactly which action is currently required and the deadline that applies to it.
4. Private: read the brief and contract terms closely
A private buyer may request quotations, hold discussions, require a presentation and select according to its purchasing rules. Check confidentiality, payment for substantial design work, rights in proposals, price validity and the ordering process. Do not assume the standstill or review mechanism used for an EU-level public procurement applies. Keep agreed changes and the formation of the binding contract clearly recorded.
Start with the actual procedure. Similar-looking contracts can have very different rules.
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Go to the original source
Editorially checked on 27 October 2026. The current original documents of your procedure govern.
- GWB § 99 — Öffentliche AuftraggeberBundesamt für Justiz / Gesetze im Internet
- Your Europe — Public tendering rulesEuropäische Union / Your Europe
- VgV — insbesondere §§ 29 und 47: Unterlagen und EignungsleiheBundesamt für Justiz / Gesetze im Internet
- BGB § 145 — Bindung an den AntragBundesamt für Justiz / Gesetze im Internet