Price monitoring; price verification for public contracts

If you receive an order from a state, municipal or other public authority, you must observe both the contractual agreements and statutory regulations when setting prices. In addition to the contractual agreements, you must also observe statutory regulations when setting prices. Compliance with these regulations can be audited by the authorities.


With certain exceptions (e.g. construction contracts), special price regulations apply to contracts awarded by the federal government, the state, municipalities, associations of municipalities and other legal entities under public law.

According to these, the maximum prices that may be charged for marketable services offered in response to a call for tenders are those that are customary in the market (market prices). In other words, the contracting authority may not be placed in a worse position than a private customer.

If no market price can be determined for a service, for example, because it is only offered by one company and exclusively demanded by the public sector, the cost price incurred and a contractually agreed profit (cost price) may be charged. Detailed criteria for determining the cost price are contained in the price regulations.

The contractor is obliged to prove on request that its price claim complies with the price regulations and the contractual agreements.

An examination of the legitimacy of the claim can be carried out by the price monitoring body of the government in whose district the contractor carries out its activities (usually company headquarters). In this context, the price monitoring agency is entitled, among other things, to visit the contractor's premises and to inspect company documents, in particular the accounting system.


Responsible for editing:Bayerisches Staatsministerium für Wirtschaft, Landesentwicklung und Energie

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