New NRW procurement law: The return of the court suppliers?

Since the beginning of the year, a new procurement law for contracts below the EU thresholds has been in effect for municipalities in North Rhine-Westphalia. The skilled trades sector sees significant risks, but also opportunities. Read the details here.

Negotiating a five-million-euro contract with the city, completely without competition? What sounds like every construction company's dream has been possible in Moers since this year. The municipality can award construction contracts up to 5,4 million euros below the EU threshold. without a formal tendering procedure grant – also by Direct order.

Since the beginning of 2026, each municipality has been allowed to decide for itself which procedure it uses for awarding contracts. Uniform Value limits Are there any options for awarding contracts below the EU threshold? not more. The new regulation in Section 75a of the Municipal Code (GO) NRW gives municipalities significantly more freedom (see details) Info box below).

What politicians call cutting red tape could ultimately backfire. Tradespeople fear a return to the practice of favoritism, especially given that around 92 percent of contracts in North Rhine-Westphalia are awarded below the EU threshold. The biggest problem: Award in specialist and partial lots is now no longer requiredFurthermore, municipalities must medium-sized Interests no priority grant more – as the old regulations still required. 

Skilled and partial lotteries are very important for the trades.

However, awarding contracts in specialized and partial lots is a [problem/issue] for the skilled trades. central themeMore than 70 percent of public construction work is carried out by small and medium-sized enterprises. Master carpenter Thomas Klode, State Guild Master and Chairman of the Municipal Policy Committee of Crafts.NRW, emphasizes: "The competition by lot has a really hohe Relevanz For medium-sized businesses, 98,8 percent of construction companies have fewer than 100 employees." These are based on a Specialized and partial lot awards He is dependent on manageable batch sizes. He fears that smaller companies will now have fewer opportunities.

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The North Rhine-Westphalian trade association had already appealed to the municipalities in the fall of 2025 to participate in the principle of to record the allocation of specialist and partial lots, instead of hiring a general contractor. Andreas Ehlert, President of the Chamber of Crafts Düsseldorf and from Crafts.NRW criticized: "This will cause municipalities to close many small and medium-sized businesses" effectively from awarding contracts. This leads not only to higher prices, but also to a weakening of the regional construction industry, which secures added value, jobs and training opportunities locally."

General contractor preferred?

The concerns of the skilled trades also relate to the Model statutes for tenders submitted by the leading municipal associations. "Unfortunately, it also shows how municipalities can completely opt out of public procurement law by forming joint ventures," said Ehlert. Klode shares these concerns: "The model statute largely opens up possibilities of General contractor award – that's what we see from the trades critical."

Another point of contention for the trade organization is the new possibility for municipalities to, after receiving bids, Renegotiations to lead to this. "We are very concerned that fair competition based on merit will be weakened," says Ehlert. This will negatively impact procurement practices. opaque"The state government and municipalities are doing a disservice to the goal of reducing bureaucracy. Anyone who wants to use tradespeople as contractors must talk to the tradespeople on the ground."

A patchwork of procurement rules 

Even now, just a few months after the introduction of the new GO, a very different awarding practices Regarding municipalities: While numerous local authorities have enacted procurement regulations, others have refrained from doing so. This includes the city of Cologne. Legal proceedings are already underway against this city. Lawsuit with the aim of having the specific legal standards for municipal sub-threshold procurements clarified in court.

Because of this patchwork of different sets of rules Furthermore, bidding companies must adapt to different processes from one municipality to another. This is a tedious task. Many companies already perceive tenders as... too complicated. "Many don't even apply Do NOT spread pesto on this layer! “They apply for public contracts because they feel they have to write a doctoral thesis. And then they don’t get the contract because they were 100 euros too expensive,” explains a procurement law expert. Christian Vedder"These are practical problems that keep recurring." The tradespeople want clearer specifications, less paperwork, and more transparency in the awarding of contracts.

Public procurement is still not a lawless space.

Vedder, as the city treasurer of Isselburg, is on the other side of the story, but he takes the tradespeople's uncertainty seriously. He appealed for support at a WHKT event. trust into the procurement practices of municipalities.

He particularly emphasized that a Court supplier status does not arise This is possible because, even under the new rules, the awarding of contracts does not take place in a legal vacuum. Because § 75a GO NRW requires the clients to continue to adhere to the general Award principles – Economic efficiency, economy, equal treatment and transparency – note this. This is, so to speak, the procurement toolbox of the authorities, which is also used in the case of Direct orders This applies. Likewise, the principles of budgetary law remain in effect.

Vedder also sees opportunities In the new GO: "The legislator is rethinking things – moving away from mistrust towards trust." It is positive for the trades that municipalities can now, before awarding contracts, Explore the market They need to be able to adequately tender services. The trades should take advantage of this and adapt accordingly. active in the Dialogue to involve the authorities. Because there actually are... no great interest in the Direct award, because the client always bears the risk of liability.

Price is no longer the sole criterion.

Furthermore, the procedures are now less formal and more complex, plus there are fewer documentation requirements. And the bidders have more opportunities to negotiate, The treasurer explains: "The city can now choose better offers in terms of content, without staring at the price."Because this alone is not sufficient as an award criterion. It also counts whether an offer is technically, economically and sustainably convincing."

Municipalities must also further examine what is truly sensible for each individual project. This is precisely where, according to Vedder, the skilled trades can score points if they can demonstrate a strong commitment to quality. organized. This would allow several companies to jointly undertake larger orders, for example with partner companies or Bidding consortia.

Partners instead of opponents

"See municipalities as partners, not as adversaries!" is also the appeal. Hendrik Schmitt, Managing Director Chamber of Crafts South Westphalia, to the tradespeople. They should contribute their ideas as early as possible and actively maintain contact with seek help from the authorities. He emphasizes that many problems do not stem from the law itself, but from its implementation on the ground. Therefore, more is needed. exchange and more collaborative work on solutions, according to Schmitt. The skilled trades could support municipalities, for example with specifications and with the question of how to structure projects effectively.

In return, the clients should not only on the cheapest Price look. "Local authorities should make their decisions provide a good reason "and properly document their award procedures," he demands. "Transparency This is the central point!

Conclusion: The new North Rhine-Westphalia procurement law leaves many questions unanswered in practice. Therefore, further work is needed in the coming months. feedback from the trades sector and an evaluation of the results. The WHKT will stay on top of it and follow up at the end of the year to find out where the problems lie.

What is a sub-threshold procurement? Municipalities can award public contracts whose value falls below a certain threshold. EU thresholds The current threshold is... Construction services at EUR 5.404.000 and for deliveries/services at 216.000 euros. 

What's new? The new regulations have been in effect in North Rhine-Westphalia since January 1, 2026. Section 75a of the Municipal Code (GO)Municipalities are now only required to formally award contracts once the EU thresholds have been reached. tenderThey need the German Procurement Ordinance for Contracts Below the Threshold (UVgO) and the German Construction Contract Procedures (VOB/A). Do NOT spread pesto on this layer! to be noted. However, clients must continue to observe the general rules. Award principles They must adhere to the principles of efficiency, economy, equal treatment, and transparency. These legal guidelines must be implemented in concrete procedures in such a way that they withstand judicial review or an audit.
As help have the leading municipal associations Model statutes include Explanations The state of North Rhine-Westphalia, however, does not consider the enactment of statutes necessary and has instead submitted a FAQ brochure Published. Other German states are closely monitoring the impact of North Rhine-Westphalia's new municipal code, with the aim of potentially using it as a model for their own reforms. For example, the Lower Saxony Association of Towns and Municipalities is urging the state to follow North Rhine-Westphalia's example.

The advisors at the Chambers of Crafts will be happy to help you with any legal questions!

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