The new rules cover government contracts for construction, goods, and services – as well as concessions – above certain value thresholds. Above are the key changes.
Background
On 9 September 2026, the European Commission adopted a proposal for a Regulation to modernise and simplify public procurement legislation in the EU. The proposal replaces the three existing Directives on public contracts and concessions with a single, directly applicable Regulation, while also consolidating procurement provisions currently scattered across sector-specific legislation. The Regulation aims to reduce divergences arising from national transposition in EU Member States and ensure more uniform application of procurement rules across the Union.
Legislative process, timing, and national effect
The proposal will now move through the ordinary legislative procedure, under which the European Parliament and the Council of the European Union must agree on a final text. Both institutions may amend the Commission’s proposal. As there is no fixed deadline for first reading, the timing of final adoption remains uncertain, and the provisions described below may still change. Once adopted and published, the Regulation will apply two years after its publication, allowing for a transition period for businesses and public purchasers. Unlike a directive, the Regulation will not require national transposition and will be binding in its entirety and directly applicable in all Member States. Member States may nevertheless need to adjust ancillary national rules or administrative arrangements to ensure consistency with the new framework.
How will bidding work?
There are two main routes to win contracts. Open procedure: Any business can submit a bid; the public buyer decides whether to shortlist candidates and whether to negotiate. Dynamic procedure: Businesses join an approved pool and are invited to bid on individual contracts as they arise – useful for ongoing needs. For cutting-edge projects, the innovation procedure lets governments test and validate new solutions before committing to buy.
What can be negotiated?
Negotiations can cover technical details, quantities, delivery schedules, and commercial terms – but not the core award criteria or who is eligible to bid. Public buyers must be clear upfront about what is and isn’t negotiable. They must also treat all bidders fairly and protect confidential business information. Under the open procedure, buyers can still skip negotiations entirely and award on first bids – but only if they indicated this at the outset.
Why does quality matter more?
The new rules push public buyers to seek “best quality for public money” – not just the lowest price. In practice, quality criteria must count for at least 30% of the total score (rising to 50% for labour-intensive contracts such as construction or services). Quality factors can include technical performance, environmental and social impact, innovation, security, supply chain resilience, and after-sales support. Buyers can lower these thresholds only if they can demonstrate that quality is already locked in through detailed specifications or contract conditions.
What are the “Buy European” rules?
This is the headline change for non-EU businesses. The new rules let public buyers favour EU-based bidders, goods, and services in several ways: (1) Restrict who can bid – limiting participation to EU or “covered” operators (i.e., those from countries with procurement agreements with the EU); (2) Impose origin requirements – requiring that goods or services come from EU or covered sources; and (3) Give EU bids a scoring advantage – either a price discount for evaluation purposes or bonus points. Bids can even be rejected outright if less than 50% of their value comes from EU or covered sources. The European Commission can also mandate these preferences for specific sectors or countries. Exceptions apply only where no EU supplier exists or where the requirements would be disproportionately costly.
What should businesses do now?
No immediate action is required – the rules are still being finalised and won’t apply for at least two years after adoption. But businesses should start planning now:
- Rethink your bid strategy: Lowest price won’t be enough. Build stronger proposals around quality, innovation, sustainability, and supply chain resilience.
- Prepare for more dialogue: Negotiations will be more common. Invest in pre-tender market engagement and train teams to handle back-and-forth discussions while staying compliant.
- Map your supply chain: If you rely on non-EU subcontractors, goods, or services, assess your exposure to the new “Buy European” restrictions. Consider whether you need to restructure sourcing or partnerships to remain competitive in EU public contracts.
Client Alert 2026-187