Public Pricing Legislation
For all contracts awarded by Germany’s federal government, the individual states, the municipalities, municipal associations, or other legal entities in the public sector, pricing is subject to the "Regulation on prices for public contracts" (Regulation PR No. 30/53). This stipulates that there must be agreement on the market prices. If this is not possible, the services are billed in accordance with the "Basic principles of pricing public contracts on a total production cost basis (LSP)".
The scope of application for public price law is very wide and covers, in particular, all types of services. In practice, the scope is often underestimated and only realised when a price review is done.
Price monitoring is the responsibility of the price monitoring authorities of the German states. If the prices exceed the maximum permitted, the contractor is threatened with repayments and further punitive measures such as fines. In a price review, the corresponding documentation outlining the costs or market prices is of critical importance.
Our approach
Our lawyers – often as part of an interdisciplinary team – have many years of practical experience in public price law. We support both public corporations and contractors in justifying and documenting the expected prices and preparing their cost calculations in accordance with the legal provisions.
Our services
In the field of public pricing legislation, we offer the following advisory services:
Pricing models
- Legal advice on preparing calculations in accordance with public price law
- Legal advice on available compensation models
- Development of price escalation clauses
- Determination of the applicable price type
Conduct price reviews
- Legal advice in the conduct of price reviews on behalf of public corporations
- Legal advice in documenting the review and preparing the price review report
Support for contractors in price reviews
- Legal advice for contractors in policy and contract reviews
- Simulation of price reviews and risk assessments
- Preparation of documentation that meets the requirements of the German price monitoring authorities
Drafting of contracts
- Drafting of contracts and compensation agreements in compliance with the law regulating prices
- Contractual protection of contractors and clients in compliance with public price law
Training and workshops
- Training sessions and in-house seminars on pricing issues and price reviews in operational practice
- Raising awareness of price-related issues and risks within the organisation
Organisational advising
- Advice on in-house solutions or requests for tenders, taking into account the various possible forms permissible under public price law
Communication
- Assistance in communicating with government authorities
- Assistance in negotiations with regulatory bodies
- Preparation of statements on individual issues and special problems
Commercial valuation
- Analyses of commercial law issues, in particular determination of the possible provisioning requirements for repayment claims or surplus revenue absorption
State aid law (specialised industry expertise)
- Advice on state aid issues and public price law
- Review and reporting of relevant measures
- Private investor test
Representation in court
- Provision of legal representation in civil and administrative jurisdiction
- Representation of our clients in pricing reviews
Contacts
