Below you will find an overview of the most important concepts encountered in public procurement and tendering. The definitions are written from a European perspective and are relevant for the Belgian, Dutch, and international tender markets.

A

Award Criteria

The criteria used by the contracting authority to determine which tender best aligns with the project. This can be based purely on price or on a combination of price and quality (most economically advantageous tender). The award criteria and their weighting must be specified in advance in the tender documents. → Read more about award criteria

Award Decision

The formal decision by the contracting authority to assign the contract to a specific tenderer. Following the award decision, there is typically a standstill period (cooling-off period) before the contract is formally executed.

Abnormally Low Tender

A bid whose price is so low that the contracting authority questions whether the tenderer can execute the contract at that price. The contracting authority is required to seek clarification before rejecting such a bid. An abnormally low price may indicate a calculation error, dumping, or non-compliance with social or environmental regulations.

Administrative Documents

The section of the tender documents that describes the legal and administrative conditions of the contract, including the procedure, exclusion grounds, selection criteria, award criteria, contractual terms, payment modalities, and other conditions. Also referred to as “administrative specifications.”

Announcement of Contract

The official publication through which a public procurement contract is made known. For European contracts, this appears on TED (Tenders Electronic Daily). For national contracts, it appears on platforms such as e-Procurement (Belgium) or TenderNed (Netherlands). Contains core information: what is being procured, who is procuring, which procedure is being followed, and what the deadline is.

Advance Market Consultation

An informal consultation that the contracting authority may organize before the formal procedure begins. The aim is to explore the market, test the feasibility of the contract, and refine specifications. Participation in market consultation must not provide any advantage in the subsequent tendering process.

B

Bid Bond

A financial security that the tenderer must provide to the contracting authority. Serves as a guarantee for proper execution of the contract. In Belgium, the bid bond typically amounts to 5% of the original contract value and is released after completion and acceptance.

Bidding Consortium

A temporary partnership of multiple businesses that jointly submit a tender for a public contract. Each member of the consortium is jointly and severally liable for the execution of the entire contract.

Breakdown of Lots

The division of a large public contract into separate sections that can be awarded independently. A major contract can be split into multiple lots by region, product category, discipline, or other criteria. This division promotes accessibility for smaller businesses.

Business Register Extract

Documentation proving that a tenderer is registered in the relevant business register and is authorized to conduct business activities. Often required as part of the qualification process.

C

Cascade System

A system within a framework agreement where contracts are first offered to the highest-ranked contractor. Only if they decline or are unavailable is the contract offered to the next ranked contractor.

Certification

Official documentation or status confirming that a contractor meets specified quality, technical, or professional standards. May be required as a selection criterion in some procurements.

Clarification Questions

A formal process during the tendering period where potential tenderers can submit questions about the tender documents. The contracting authority provides answers in writing, typically shared with all potential tenderers to ensure equal information.

Common Procurement Vocabulary (CPV)

A classification system of the European Union that assigns a numbered code to each type of product, service, or work that can be procured through public contracts. Each public procurement is assigned one or more CPV codes, which facilitates searching and matching of contracts. → Read more about CPV codes

Compliance Check

The verification that a tender meets all formal and substantive requirements of the tender documents. This includes both administrative completeness (are all requested documents present?) and technical conformity (does the offer meet minimum requirements?).

Concession

A special form of public contract where the contractor is not paid (solely) by the government but receives the right to commercially operate the service or work. Examples include operating a parking garage, running a cafeteria in a public building, or managing a toll road. The operational risk lies with the concessionaire.

Competitive Dialogue

A multi-round procurement procedure intended for particularly complex contracts where the technical or financial solution is not predetermined. The contracting authority conducts a dialogue with selected candidates to develop a solution, after which candidates submit final tenders.

D

Deemed Acceptance

In some procurement systems, if a contracting authority fails to respond to procedural deadlines or requests within specified timeframes, the request or appeal may be treated as accepted. Rules vary by jurisdiction.

Disqualification Grounds

Legal reasons for excluding a business from participation in a public procurement. There are mandatory exclusion grounds (such as conviction for corruption, fraud, money laundering, or terrorism) and optional exclusion grounds (such as serious professional misconduct, non-performance on previous contracts, or failure to pay taxes or social contributions).

Dynamic Purchasing System (DPS)

A fully electronic purchasing procedure for standardized products and services. Unlike a framework agreement, a DPS remains open to new participants throughout its duration. Suppliers meeting the conditions can apply at any time. When a specific need arises, the contracting authority launches a mini-competition among all accredited participants.

E

Economically Most Advantageous Tender (EMAT)

The award criterion where not only price but also qualitative aspects are weighted in the evaluation. This is the standard award criterion in many EU member states, with sub-criteria such as best value for money, lowest cost based on cost-effectiveness, or lowest price combined with quality measures.

Electronic Auction

An online bidding process where tenderers can improve their price or other quantifiable elements in successive rounds. Used as the final phase of certain procurement procedures, particularly where price is the dominant criterion.

Electronic Procurement Platform

A digital platform where public contracts are published. Important platforms include TED (European), e-Procurement (Belgium), TenderNed (Netherlands), and various regional or sectoral platforms. TenderWolf aggregates publications from all these sources.

e-Procurement

The Belgian federal platform for the publication of public contracts. All Belgian contracting authorities are required to publish their contracts here. The platform also includes functionality for electronic submission of tenders. In the Netherlands, TenderNed serves this role.

ESPD (European Single Procurement Document)

A standardized form with which tenderers declare compliance with exclusion grounds and selection criteria. This simplifies administrative burden: instead of submitting supporting documents with each tender, an initial self-declaration suffices. Only the awarded contractor must provide actual supporting evidence.

European Thresholds

The value limits above which certain public procurement rules apply. The most important threshold is the EU threshold: above this, the contract must be competitively procured and published on TED. Thresholds are reviewed every two years by the European Commission and differ by contract type (works, supplies, services) and contracting authority type. → Read more about European thresholds

European Directives

EU legislation that harmonizes public procurement rules across all member states. The most important are Directive 2014/24/EU (classical sectors), 2014/25/EU (special sectors such as water, energy, transport, and postal services), and 2014/23/EU (concessions). Member states must transpose these directives into national legislation.

Evaluation Committee

The group of individuals appointed by the contracting authority to assess tenders against the specified criteria. Members typically include subject matter experts, procurement specialists, and financial analysts.

F

Fixed Price

A firm, all-inclusive price for the execution of a contract. The contractor bears the financial risk if actual costs exceed the budget. The opposite is a contract based on actual costs (cost-plus arrangement).

Framework Agreement

An agreement between a contracting authority and one or more contractors that establishes the terms and conditions for contracts to be placed over a specified period. The maximum duration is typically four years. Specific contracts are awarded through mini-competitions or cascade systems. → Read more about framework agreements

G

General Principles of Procurement

Core principles that underpin all public procurement regulations: transparency, equal treatment, non-discrimination, and proportionality. These principles ensure fair competition and protect the public interest.

Grounds for Exclusion

See Disqualification Grounds.

H

Handcraft Certificate

Official documentation proving that a business meets certain craft-related qualifications. May be required in some procurement procedures, particularly in construction-related fields.

I

Innovation Partnership

A procurement procedure specifically designed for situations where the contracting authority needs a product or service that does not yet exist on the market. The government partners with one or more businesses to develop the innovative product or service and can subsequently purchase the result without launching a new procedure.

Instructions for Submission

The formal guidance provided to tenderers on how to prepare and submit their tenders, including format requirements, documentary evidence needed, and submission procedures.

Integrity Pact

A commitment by bidders and the procuring organization to abstain from corruption and fraud during the procurement process. Sometimes required in high-value or sensitive contracts.

L

Lowest Price

An award criterion where price alone determines the choice of contractor. All tenders that meet minimum requirements are compared on price, and the cheapest wins. In many cases, this criterion is considered less desirable because it does not reward innovation and quality.

Lot

A separate section of a public contract that can be awarded independently. A large contract can be divided into multiple lots by region, product category, discipline, or other criteria. Tenderers may bid for one or multiple lots. Lot division promotes accessibility for smaller businesses.

M

Management Report

A formal document from the contracting authority providing details about the procurement process, including the number of bids received, the evaluation process, and the rationale for the award decision.

Material Error

A significant mistake in a tender that makes it non-compliant with the tender requirements. Unlike minor irregularities, material errors cannot be corrected or regularized.

Minimum Viable Specifications

The essential technical and performance requirements that a tender must meet to be considered compliant. These establish the baseline for acceptable solutions.

Mini-Competition

A simplified competition among contractors party to a framework agreement or participants in a dynamic purchasing system. For each specific need, accredited suppliers are invited to submit tenders, often with shorter timeframes and lighter procedures than a regular procurement.

Motivation of Decisions

The legal obligation for the contracting authority to justify its decisions. This applies to award decisions but also to decisions to exclude or not select tenderers. The justification must be sufficiently detailed to allow affected businesses to understand the decision and potentially challenge it.

N

Negotiated Procedure

A procurement procedure where the contracting authority negotiates with one or more tenderers on the terms and conditions of their offers. Used for complex procurements where specifications cannot be fully defined in advance.

Non-Discriminatory Treatment

A core principle requiring that all tenderers be treated equally. This means applying the same rules, criteria, and procedures to all participants without arbitrary preference.

NUTS Code

The Nomenclature of Territorial Units for Statistics is a hierarchical classification system of the EU for geographic regions. In public procurement, NUTS codes indicate where the contract is to be executed. Codes range from NUTS-0 (country level) to NUTS-3 (district level), with LAU codes below for municipalities.

O

Opening Minutes

The official record of the opening of tenders. Contains the list of tenderers and, depending on the procedure, submitted prices. In Belgium, the opening of tenders in open procedures is public — anyone may attend. The minutes provide an initial indication of competition levels.

Operational Risk

In a concession arrangement, the financial and operational risk borne by the concessionaire for the commercial viability of the service or work.

Opening of Tenders

The formal process where submitted tenders are opened and registered. This marks the official end of the tender submission period.

P

Performance Bond

A financial guarantee that ensures the contractor will fulfill the contract obligations. Often required for works contracts and set at a percentage of the contract value.

Procedure Type

The classification of a procurement based on the level of openness and competition. Main types include open procedure (all interested parties may bid), restricted procedure (only invited parties bid), negotiated procedure (negotiation with selected suppliers), and competitive dialogue.

Publication Platform

An electronic system where public contracts are published. Key platforms include TED (European), e-Procurement (Belgium), TenderNed (Netherlands), and various regional or sectoral systems. TenderWolf aggregates publications from all these sources.

Q

Qualification Criteria

Standards that a tenderer must meet to be eligible for participation in a procurement. These typically address financial capacity, technical capability, and professional competence.

R

References

Supporting documentation from previously executed, comparable contracts that a tenderer provides to demonstrate experience and capability. The tender documents specify what type of references are required (contract type, minimum value, recency) and how many. References are a commonly used selection criterion.

Remedies

Legal mechanisms available to businesses to challenge procurement decisions. These may include requests for interim relief (before contract signature) or damages claims (after contract signature). Applicable authorities vary by country.

Request for Quotation (RFQ)

A simplified procurement process for lower-value contracts where the contracting authority solicits price quotes from multiple potential suppliers.

Restricted Procedure

A procurement procedure with two stages: first, the contracting authority selects qualified candidates; second, only selected candidates are invited to submit tenders.

S

Selection Criteria

The standards used by the contracting authority to assess whether a candidate or tenderer is capable of executing the contract. These relate to the undertaking itself (not the specific offer) and typically include financial capacity, technical capability, and professional competence. Not to be confused with award criteria, which evaluate the tender itself. → Read more about selection criteria

Self-Cleaning

The opportunity for a business that would normally be excluded from a procurement to demonstrate that it has taken sufficient measures to restore its reliability. This may be done through compensation, cooperation with authorities, or structural measures to prevent recurrence.

A contractual provision requiring the contractor to pursue social objectives during contract execution, such as employing long-term unemployed persons, apprentices, or persons with disabilities. Increasingly included in contracts, especially larger ones.

Special Sectors

Sectors subject to specific procurement rules: water, energy, transport, and postal services. Procedures for these sectors are more flexible than those for classical sectors, governed by Directive 2014/25/EU.

Standstill Period

The mandatory waiting period between announcement of the award decision and actual contract signature. Gives unsuccessful tenderers time to challenge the decision. In Belgium and the Netherlands, this period typically lasts 15 days.

Statement of Non-Involvement

A declaration by the contracting authority that external parties (such as market consultants) who advised on tender preparation did not gain unfair advantage and have no conflict of interest.

T

Technical Specifications

The section of the tender documents describing the substantive and technical requirements that the requested product, service, or work must meet. Can be functional (describes desired outcome) or prescriptive (specifies exact solution). Functional specifications are encouraged as they allow more room for innovation.

TED (Tenders Electronic Daily)

The online publication platform of the European Union for public contracts above the European thresholds. All EU member states are required to publish their European procurements here. TED is freely accessible and updated daily. TenderWolf monitors TED automatically.

TenderNed

The Dutch digital platform for public procurements. All Dutch contracting authorities are required to publish their contracts through TenderNed. The platform also provides functionality for submitting questions, submitting tenders, and managing the procedure. TenderWolf monitors TenderNed automatically.

Tender Documents

The complete set of documents defining the contract requirements, procedures, and conditions. Typically includes administrative specifications, technical specifications, draft contract, evaluation criteria, and submission instructions.

Tender Invitation

The formal request from a contracting authority for businesses to submit bids for a specific contract.

Tenderer

A business or group of businesses that submits a tender in response to a public procurement. The tenderer may be an individual business, a temporary consortium of businesses, or a subcontractor acting on behalf of a main contractor.

Tender Submission Period

The timeframe within which businesses can submit their tenders. Minimum periods are legally established and depend on the type of procedure and whether it is a European or national procurement. Shortened periods are possible in urgent situations or when using electronic means.

Tender Validity Period

The period during which a tender remains valid and binding. The contracting authority may ask a tenderer to extend the validity period if the contract award is delayed.

Transparency Principle

One of the core principles of procurement law. Requires that the contracting authority communicate openly and clearly about the procedure, requirements, criteria, and decisions. All tenderers must have access to the same information and the rules must be established in advance.

U

Unsuccessful Tenderer

A business whose tender was not selected for award. Unsuccessful tenderers typically have the right to request feedback on their tender and reasons for non-selection.

V

Variant

An alternative proposal that deviates from the basic solution described in the tender documents. A tenderer may only submit a variant if the tender documents permit it. The contracting authority must specify in advance the minimum requirements that a variant must meet.

Verification of Tender Accuracy

The process of confirming that a submitted tender is complete, accurate, and compliant with all procedural requirements before formal evaluation begins.

W

Warranty Period

The period after preliminary acceptance of works during which the contractor remains responsible for remedying defects. Typically lasts one to two years, depending on the contract documents. Following the warranty period and final acceptance, the performance bond is released.

Weighting of Criteria

The percentage distribution of the importance of different award criteria. For example: price 60%, quality 30%, sustainability 10%. The weighting must be specified in advance in the tender documents and determines how submitted tenders are compared.

Abbreviations

Abbreviation	Full Form	Explanation
CPV	Common Procurement Vocabulary	EU classification for products and services
DPS	Dynamic Purchasing System	Electronic system for repeat purchases
EMAT	Economically Most Advantageous Tender	Overarching award criterion
ESPD	European Single Procurement Document	Uniform self-declaration form
EU	European Union	Supranational organization
NUTS	Nomenclature of Territorial Units for Statistics	EU geographic classification
RFQ	Request for Quotation	Simplified procurement process
TED	Tenders Electronic Daily	EU publication platform

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