Thresholds (Procurement thresholds)

Thresholds in public procurement refer to monetary values that determine which procurement rules and procedures must be followed. When a contract’s estimated value meets or exceeds these thresholds, it triggers requirements such as EU-wide advertising, use of formal tender procedures, and publication in the Official Journal of the EU (via TED). For contracts below the thresholds, simpler, often national procedures apply.

In the EU, procurement thresholds are updated every two years through Commission Delegated Regulations to account for economic changes and WTO obligations. As of 1 January 2024, the thresholds (exclusive of VAT) are approximately:

• Supplies and Services:
  • Central government bodies: €143,000
  • Other public authorities: €221,000
• Works (construction): €5,538,000 for all authorities
• Social and Other Specific Services (light-touch regime): €750,000
• Utilities sector (supplies & services): €443,000
• Concessions: €5,538,000

Understanding thresholds is essential for both contracting authorities and bidders. Above-threshold contracts must follow EU-level procedures—adding complexity and formality—but gain EU-wide visibility. Below-threshold contracts may rely on national rules, which typically entail simpler and faster processes. Misestimating thresholds risks procedural non-compliance or missed opportunities, so both sides must accurately calculate and apply the correct thresholds to ensure legal adherence and effective market engagement.