What is a public contract?

Verified 28 May 2026 - Entreprendre Public Service / Directorate of Legal and Administrative Information (Prime Minister)

A public contract is a contract concluded for consideration between a public or private buyer and one economic operator . It may concern works, supplies or services.

Public contracts are contracts concluded by a public person (called a « public buyer ») with a public or private person (called a « public buyer »). economic operator ») to meet its needs for works, supplies or services.

These are contracts concluded « for consideration », i.e. in exchange for remuneration.

The rules concerning public procurement are laid down in the Public Procurement Code.

There are several types of public procurement:

  • Public works contracts for the execution of building, civil engineering or infrastructure works.
  • Public supply contracts necessary for the functioning of the administration with purchase of products, equipment, or rental
  • Public service contracts for the provision of material services (e.g. cleaning of premises) or intangible services (intellectual services such as project management)

Each of these markets can be innovative. This means that they relate to work, supplies or services that are new or that significantly improve a marketing method (promotion, pricing of a product, etc.), organization, practice or relationship. They respond to new needs of the administration or improve an existing need. They also meet the needs for the development of a prototype or a new concept.

The applicable rules vary depending on the type of contract. For example, the amount of the contract determines the implementation of one procedure rather than another.

Contracts concluded may take the following forms:

  • Fixed quantity contract (or ordinary market). It is used when the determining elements of the market (duration, quantity, technical characteristics, etc.) are known. The pace and time of execution of the services as well as the quantities can already be fixed (for example: for a contract on the acquisition of a company vehicle, the delivery date and the quantity are known).
  • Purchase order market. In this case, the technical characteristics of the services are specified in the specifications but there is uncertainty about the exact quantities that the buyer will need and/or the pace of execution of the services. The contract is therefore executed as and when purchase orders are issued.
  • Split markets (or framework agreements). The buyer cannot precisely define the need. The framework agreement sets out the contracts to be awarded during a given period, with the prices and, where appropriate, the quantities envisaged. For example, the contract covers the purchase of computer equipment for a period of 3 years, with several service providers. A re-competition of incumbents will be conducted prior to each contract.

Public procurement must respect 3 main fundamental principles, regardless of the amount. These are freedom of access to public procurement, equal treatment of candidates and transparency of procedures.

Compliance with these principles ensures the effectiveness of public procurement and the proper use of public funds.

Freedom of access to public procurement

The buyer must allow all persons interested in a public contract to apply.

This principle presupposes that the buyer's needs are sufficiently publicized. It must take measures to advertising which vary according to the subject matter of the contract, its amount and the degree of competition in the economic sector concerned.

In addition, the contract documents must be accessible to all interested applicants.

Equal treatment of candidates

All applicants for a public contract must be treated the same and must therefore receive the same level of information.

Respect for the principle of equal treatment prohibits discrimination and extends to the entire procedure.

The drafting of the specifications must be objective and not guide the choice of the buyer.

All tenders submitted within the requested deadline must be examined, regardless of the nationality or location of the candidate.

All applicants must have equivalent information. If one of them asks a supplementary question, the buyer must send his answer to all candidates.

Transparency of procedures

The principle of transparency of procedures presupposes in particular the traceability of the procedure for the award of the public contract (traceability of the minutes of judgment, hearing, negotiation, etc.), the drafting of clear and precise specifications and the preservation of documents for a certain period.

Candidates are informed as soon as the advertisement is published of the criteria that will allow the buyer to choose the most economically advantageous offer. Similarly, any candidate whose bid is rejected must be informed of the reasons for the rejection.

There are 2 main categories of public purchasers:

  • Contracting authorities. These are public entities, i.e. the State, local authorities and national public institutions (e.g. museums, universities, hospitals). It also concerns certain foundations and associations set up to meet needs in the general interest and which are financed mainly or whose management is controlled by a contracting authority.
  • Contracting entities. These are contracting authorities or public companies that operate networks (e.g. water, gas, electricity, transport, postal services).

FYI  

Mixed economy businesses and local public businesses award public contracts and must respect the principles of public procurement.

Some public procurement contracts are open to all candidates while others are reserved for certain structures.

Markets open to all

In principle, any company can apply, regardless of its legal form (individual entrepreneur or business) or regardless of its size (VSE, SME). Several companies can also associate to respond to a public contract, for example in the context of a group of companies (co-contracting).

The company must meet several conditions to be eligible to apply.

The candidate company must not have been convicted in the last 5 years. It must also be up to date with its tax and social security obligations and it must not be in the process of bankruptcy.

The persons eligible for a public contract shall be appointed as follows:

  • At the beginning of the competition procedure, we talk abouteconomic operator.
  • The candidate is an economic operator that requests to participate or is invited to participate in the procedure.
  • The tenderer is an economic operator who submits a tender in the context of a public procurement procedure.

Reserved contracts

Contracts reserved for facilities employing disabled or disadvantaged workers and companies of the social and solidarity economy (SSE)

Some public contracts or lots are reserved facilities (also known as inclusive companies) employing persons with disabilities, disadvantaged persons, prisoners or persons who are out of work to a greater extent than traditional companies.

The minimum proportion of disabled, disadvantaged or detained workers employed by such structures shall be 50%.

The structures concerned by these contracts are:

  • Adapted companies (EA) and institutions
  • Establishments and services of assistance through labor (ESAT)
  • Structures for integration through economic activity (SIAE) supporting disadvantaged people
  • Companies in prisons: the production of goods and services is carried out in prisons by inmates
  • Social and Solidarity Economy (SSE) companies

The eligibility criteria for the companies are set out in the Consultation Regulation (CR) market and in the Special Administrative Clauses (SAC).

A specific platform " The Inclusion Market » lists inclusive vendors. It allows public buyers to develop their inclusive purchases.

The competition is only between the integration structures.

Example :

A municipality launches a public market to clean up urban spaces. In this contract, it provides for a lot called « insertion by cleaning » to which only an insertion company (such as an ESAT or an SIAE for example) can apply. In this case, it can publish its need on the dedicated platform the inclusion market.

Innovative markets reserved for young innovative companies (JEI)

An innovative contract relates to a technological product or process innovation or an organizational innovation linked to digitization.

From 28 May 2026, where an innovative contract has been awarded for an amount less than €100,000, public purchasers may reserve lots representing 15% the total amount of the contract for young innovative companies (JEI). To know the conditions to be met to benefit from the status of Young Innovative company (JEI) , it is possible to consult our dedicated sheet.

Please note

An innovative contract may be awarded without prior advertising or competition until €100,000. This threshold will pass to €140,000 from 1er July 2026.

Allotment promotes competition between companies and allows them, regardless of their size, to access public procurement. This is an obligation for public purchasers but there are several exceptions to this principle.

Allocation obligation

The public purchaser has the obligation to allocate, i.e. divide the market in separate and autonomous batches.

The buyer determines the number, size and purpose of the batches.

The cutting can be done in technical batches (by trades, by purchasing categories), in geographical lots, or in batches technical and geographical.

Example :

A public works contract for the construction of a building may be divided into several lots: electricity (lot 1), windows (lot 2), insulation (lot 3), masonry (lot 4), paint (lot 5).

Where the contract comprises several lots, the estimated value of all the lots of the contract shall be taken into account in determining the procedure applicable to all the lots.

Warning  

The so-called sausage-making practice, which consists in passing several procedures of small amount one after the other in order to remain below the thresholds of formalized procedures, is prohibited.

When the total amount of the contract reaches the threshold to apply the rules of the formalized procedure, the buyer may use a " adapted procedure » for small lots. These are the following:

  • Where the estimated value of each lot concerned is less than €80,000  HT: titleContent for supply contracts and services or to €1 million HT: titleContent for work
  • Where the aggregate amount of small lots does not exceed 20% the value of all the batches.

Example :

A public works contract with a total value of €5.85 MILLION HT includes the following batches:

  • Lot 1: €3 850 000 HT
  • Lot 2: €1 050 000 HT
  • Lot 3: €230,000 HT
  • Lot 4: €720,000 HT

Batches 3 and 4 have a value less than €1 million HT. Their cumulative amount is €950,000 HT. It does not exceed 20% the value of all the lots (5 850 000 x 20% = 1 170 000). They can therefore be passed in adapted procedure.

Example :

A public supply contract with a total value of €550,000 HT includes the following batches:

  • Lot 1: €500,000  HT
  • Lot 2: €30,000  HT
  • Lot 3: €20,000 HT

Batches 2 and 3 each have a value less than €80,000HT. Their cumulative amount is €50,000 HT. It does not exceed 20% of the value of all the batches (550 000 x 20%  =110,000). They can therefore be passed in adapted procedure.

Derogations from the allotment rule

The public purchaser has the possibility to not allotting the market when it is in one of the following cases:

  • It is not in a position to carry out the tasks of organization, steering and coordination on its own.
  • The allocation in separate lots could restrict competition or risk making it technically difficult or financially more expensive to provide services.
  • For the contracting entities, the division into separate lots may lead to an unsuccessful procedure by making the performance of the services technically difficult or more costly.

Moreover, global markets, which are contracts awarded in one single batch, derogate the allotment principle.

It exists different types of global markets:

  • Design-realization contracts. This is a works contract allowing the public purchaser to entrust a single contractor with a mission relating to both the preparation of studies (design) and the execution of works (realization).
  • Global Performance Markets. They allow buyers to associate operation or maintenance with the realization or design-realization of services (works, supplies or services), to meet quantified performance objectives. This can be an energy performance objective, or any measurable performance objective (level of activity, quality of service, ecological impact).
  • Sectoral Global Markets. They allow buyers to entrust a global mission with the object of the design, construction, fitting out, maintenance and / or maintenance of the constructed works. These include buildings for the national police, the national gendarmerie, the armed forces, prisons, detention centers and waiting areas.

FAQ