Knowledge base › The basics of public procurement
Who is obliged to tender, when the European rules apply and what happens below the threshold.
Checked on 15-09-2026
Public procurement is the way public bodies put contracts for works, supplies and services out to the market. Public money is involved, so prescribed procedures apply that ensure equal opportunities, transparency and competition. The organisations bound by these rules are called contracting authorities: the State, provinces, municipalities, water boards and bodies governed by public law. A private company buying for itself is in principle not covered.
Whether a contract must be tendered at European level depends on its estimated value. Above the European threshold, the authority follows a European procedure with a public notice. Below it, the organisation's own procurement policy determines the procedure, within general principles such as equal treatment and non-discrimination. Under article 1.4 of the Dutch Public Procurement Act 2012 (Aanbestedingswet 2012), an authority chooses the procedure and the admitted companies on objective criteria, and gives a company the reasons for that choice on written request.
The estimate therefore determines which rules apply. The authority uses the total amount excluding VAT, including options and extensions stated in the documents (article 2.15). Splitting a contract in order to avoid the Act is not allowed (article 2.14). For services without a total price and of indefinite duration, the Act uses 48 times the monthly amount (article 2.17). Dividing a large contract into lots is allowed; the estimate then uses the total value of all lots (article 2.18).
What this means for you: with every public client, the first question is how large the contract is and which procedure goes with it. Above the threshold the contract is publicly announced and any suitable company may tender. Below it, you are often invited only if the buyer knows you. Look up the procurement policy of the municipalities and water boards in your region; it states from which amount which procedure applies. You may also ask the authority in writing why a particular procedure was chosen.
These articles explain how public tendering works; they are not legal advice. If you are unsure about a specific tender, ask your question through the clarification round or consult a lawyer.
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