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30.06.2021 | KPMG Law Insights

Construction Site Award Statistics Germany

Construction Site Award Statistics Germany

The German procurement market is one of the largest in Europe, with an estimated value of up to EUR 400 billion. How is it structured and what are the forecasts for the future?

According to official estimates by the BMWi, there are approximately 30,000 different awarding bodies in Germany. The type and size of awarding bodies vary widely. Whether it’s a small municipality or a federal government ministry, all are involved in the rising volume of awards in Germany and often share similar challenges at times. According to these estimates, some 2.4 million award procedures with an award volume of around 400 billion euros are carried out each year – forecast rising. This accounts for 10-15% of the gross domestic product, which puts Germany at the European top in terms of public procurement. It is interesting to note that 90% of all award procedures and 75% of the award volume are in the sub-threshold range.

Need for action on procurement statistics already recognized

The search for more accurate statistics and data is very tedious and aggravating. While the statistics for EU-wide tenders are already largely meaningful, there is still a need for action for national tenders.
For example, the Internet portal Opentender records and analyzes all EU-wide tenders in detail. This makes the search for required data for these award procedures much clearer. This clarity helps potential bidders, particularly in the SME sector, to better prepare their own order planning for the coming fiscal period.
At the same time, the same statistical quality does not yet exist for national award procedures in the German economic area. The gap has been recognized by BMWi. For example, the German government intends to introduce procurement statistics that include both EU-wide tenders and national tenders. It is intended that the procurement statistics will go live in early 2020. However, the associated benefits for the parties to the proceedings do not come without a price:
All procedures with an order volume of 25,000 euros or more will probably have to be reported electronically, promptly and with extensive data records to the Federal Statistical Office. It is likely that this future reporting requirement will present enormous procedural or organizational challenges.

Conclusion

In line with the great importance of the public sector, it is necessary and welcome to further optimize the nature and scope of procurement statistics. Procurement agencies in Germany are advised to prepare for the upcoming reporting requirements in good time.

Appetite for awarding? Visit our contracting service 360. Premium procurement for the public sector.

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Henrik-Christian Baumann

Partner
Berlin Site Manager
Specialist lawyer for public procurement law
Specialist lawyer for information technology law

Heidestraße 58
10557 Berlin

tel: +49 30 530199129
henrikbaumann@kpmg-law.com

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