The Conclusion of State Contracts under German Law

Published date01 December 1961
AuthorGerd Beinhardt
Date01 December 1961
Subject MatterArticles
If no action is taken as a result of
The system of contracts
either kind of complaint, an appeal may be
made in writing to the Prime Minister’s
A. Conclusion
At that
of contracts
stage, the complaints are
dealt with by the Inspectorate of Suggestions
and Complaints Offices. The Inspectorate
by the State are based on the en-
forcement of
the internal instructions (VOL
not, however, deal with their substance,
which is referred
VOB), which between them, in practice,
to the department or agency
responsible for taking
govern public contracts in general, whether
any necessary action.
for works or otherwise.
The services must be rendered by expe-
rienced contractors able to complete the work
satisfactorily who are solvent and tender
The Conclusion of State Contracts
reasonable prices. Competitive bidding is the
under German Law
As in many other countries, there is a well-
defined method for
concluding contracts
(public tendering and restricted tendering)
and a less formal method (direct agreement)
may only be ressorted to exceptional-
ly, since the rules contain a list of cases in
which the administrative authorities may
The Reichshaushaltsordnung Act of 31
use it.
The cases are similar to those pro-
December 1922, which established provisions
vided for in other countries, such as Belgium.
for the rational and cautious management of
Direct agreements are only made when cir-
the financial resources of the State, stipulated
cumstances make tendering practically im-
that public tendering is the most suitable
procedure for contracts concluded on behalf
of the
public tendering is the rule, restricted
State, unless the nature of the contract
tendering only takes place when the nature
or certain circumstances require its avoid-
and importance of the work requires that a
Article 46 of the Act stated that the
certain reliance
Government of the Reich would establish
may be placed in the con-
standard rules for the conclusion of
tractor, or when the contractor has special
qualifications or
Those standard rules have been
provided by
skill, and when
there are not enough qualified enterprises.
an Ordinance of 1926 (known as VOB),
which lays down rules for
any event, at least three contractors must
contracts for con-
be consulted.
structional works, and an Ordinance of 1932-
1936 (VOL) on contracts for...

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