On December 16, 2025, the Brandenburg Higher Regional Court ruled (case reference: 19 Verg 1/25) that the exclusion of a bidder due to an allegedly unreasonably low offer price is unlawful if the price clarification request is not sufficiently clearly formulated. The decision focused on the question of what requirements public contracting authorities must place on a lawful price clarification and how far the bidders’ clarification obligations extend.
Our video discussing the judgment:
Facts of the case
The subject of the procedure was a Europe-wide invitation to tender for scaffolding work as part of the construction of a new “energy workshop”. The client estimated the contract value at around 157,000 euros. In fact, however, all of the bids received were significantly lower than this estimate.
The applicant, a scaffolding company, submitted the most favorable offer in terms of price at around EUR 50,000 (gross). Due to the considerable difference between the contract value estimate and the other bids, the contracting authority initiated a price clarification in accordance with Section 16d EU VOB/A. Initially, the total number of hours, material and equipment costs and individual items were clarified.
Following an initial exclusion of the applicant and a complaint lodged against this, the client revoked the bidder information letter and entered into a new price clarification. This second clarification related in particular to four specifically named items in the bill of quantities. After the applicant had commented on this, the contracting authority again excluded it from the award procedure due to what it considered to be an unreasonably low price.
The procurement chamber initially confirmed this exclusion. However, following an immediate appeal by the applicant, the Brandenburg Higher Regional Court overturned the decision of the awarding chamber and obliged the contracting authority to re-evaluate the bid in accordance with the legal opinion of the Senate.
Key point of the decision
The decision of the Higher Regional Court focused on the question of what requirements are to be placed on a lawful price disclosure and what scope a request for disclosure actually has.
The court initially confirmed that the contracting authority was in principle entitled to enter into a price clarification due to the significant price gap to the next bid. The Senate also considered it permissible to use the bidder’s mean value as an additional indication of a possible unreasonably low price, which the defendant had formed, as all bids received were below the contract value estimate.
However, the decisive factor was the way in which the second price clarification was carried out. In the opinion of the Higher Regional Court, the renewed request for clarification constituted a “temporal caesura”. By canceling the first bidder information letter and announcing a new price clarification, the procedure was set back to the status prior to the first clarification. Therefore, only the second clarification letter was decisive.
In order to clarify the total price — despite the use of the word “in particular” — this only referred to four specifically named items according to its objective explanatory content. Other aspects, such as the total number of hours, were no longer the subject of a clearly formulated request for clarification. The applicant was therefore entitled to assume that she only had to explain these items.
As the applicant fulfilled these requirements and the items concerned only accounted for around 3.7% of the total bid price, the exclusion could not be based on a negative prognosis for the proper provision of services. Exclusion due to insufficient clarification was therefore unlawful.
Tips for public clients
- Formulate clarification requests precisely: Clients should specify clearly and without contradiction which price components are to be clarified. Unclear or ambiguous formulations are at their expense.
- Note breaks in the procedure: If a request for clarification is revoked and a new price clarification is initiated, it must be made clear whether earlier doubts persist or are dropped.
- Clearly justify negative forecasts: The exclusion of an offer requires that the specific explanations requested are not satisfactory. Generalized or belated doubts are not sufficient.
- Protect competition: Price clarification serves to verify seriousness, not to sanction unusually favorable offers.
Tips for bidders and funding recipients
- Pay attention to the wording: The decisive factor is what is expressly requested in the request for clarification. Bidders only have to explain what is clearly stated.
- Provide information in a structured and comprehensible manner: Particularly in the case of individual items, it should be explained transparently why the calculation is adequate.
- Document any contradictions on the part of the contracting authority: Unclear or contradictory justifications can be decisive in review proceedings.
- Use price clarification as an opportunity: A factual and complete explanation can dispel the suspicion of an unreasonably low offer and prevent exclusion.