Threshold for Works Contracts

Works contracts are the largest category of public procurement by value. Building roads, constructing hospitals, fitting out government offices, installing major plant and equipment: these are works contracts in the sense of Directive 2014/24/EU. Because individual works contracts routinely run into tens or hundreds of millions of euros, the threshold set for triggering full procedure is substantially higher than for supplies or services.

What is the threshold for works contracts?

Under Directive 2014/24/EU, works contracts must follow the full directive-compliant procedure when the estimated contract value reaches or exceeds approximately 5,382,000 euros (current 2024-2025 period). This threshold applies uniformly to all contracting authorities, whether central government ministries or local councils. There is no lower threshold for central authorities and a higher one for sub-central authorities as there is with supplies and services. Works is one number across the board.

Works contracts are defined broadly. They cover contracts whose object is the execution, or both the design and execution, of works related to one of the activities listed in Annex II of the directive (covering construction and civil engineering activities), or the realisation, by whatever means, of a work corresponding to the requirements specified by the contracting authority. Procurement of a building under a design-and-build contract, construction of infrastructure, and major fit-out projects all fall within this definition.

The utilities directive (2014/25/EU) and the concessions directive (2014/23/EU) each set their own works thresholds, which differ from the classical directive figure. The concessions threshold applies specifically to works and services concessions.

Why it matters for bidders

If you operate in construction or civil engineering, the works threshold is the primary gating figure for your market monitoring. Above-threshold works contracts must be published on TED, giving you EU-wide visibility and the right to bid on equal terms with domestic suppliers. Below-threshold works contracts may be advertised nationally or even locally, with less standardised rules.

The high value of the threshold also means that many smaller construction projects fall below it and are therefore handled under national rules. Knowing where the threshold sits helps you decide whether to monitor TED or national portals (or both) for works opportunities in a given country.

When estimating contract value for a works project, VAT exclusion in threshold calculation applies: the estimated value is always ex-VAT. For projects divided into lots, lot value estimation rules determine whether individual lot values must be aggregated.

Example

A Dutch municipality plans to build a new civic centre. The estimated total construction cost is 7 million euros. This exceeds the works threshold of 5,382,000 euros. The municipality must publish a contract notice on TED, run a compliant open or restricted procedure, apply published award criteria, and observe the mandatory ten-day standstill period before signing the construction contract.

Frequently Asked Questions

Does a design services contract for a building project count as a works contract?

No. Professional design services (architectural, engineering consultancy) are services contracts, not works contracts, even when they relate to a construction project. They are assessed against the services threshold rather than the works threshold. The works contract itself, covering physical construction, is assessed against the works threshold.

What if a works contract is split into lots?

If the total aggregated value of a works project (all lots combined) exceeds the threshold, the procuring authority must apply full directive rules. Individual lots below 1 million euros may be awarded under simplified rules, subject to a cap, but this exception is limited. See lot value estimation for the mechanics.

Are maintenance and repair contracts treated as works?

It depends on the nature and scale of the work. Minor routine maintenance is typically treated as a services contract. Substantial renovation, refurbishment, or installation work may qualify as a works contract. The classification affects which threshold applies and can significantly change procedural obligations, so it is worth analysing carefully before committing to a procurement strategy.