Public and private contracts: two different frameworks
Public contracts
Public contracts are let by public buyers subject to the procurement code, which imposes strict rules on competition, transparency and equal treatment of candidates.
Procedural thresholds in France, 2026–2027
| Contract value | Applicable procedure |
|---|---|
| Below 100,000 € excl. VAT | Exemption from prior publicity and competition for works contracts, made permanent by the decree of 29 December 2025 |
| 100,000 € to 5,404,000 € excl. VAT | An adapted procedure with proportionate publicity |
| Above 5,404,000 € excl. VAT | Formal procedures: open tender, or a procedure with negotiation |
| For reference, supplies and services | Exemption below 60,000 € excl. VAT since 1 April 2026; formal procedure above 216,000 €, or 140,000 € for the State |
Private contracts
In the private sector the client is free to choose providers with no legal obligation to compete. The relationship is governed by the civil code. In practice most operations of any size are put to three to six contractors, for economic reasons and to satisfy funders.
The competitive procedures
| Open tender | Any economic operator may submit an offer. The most common procedure for works above the European thresholds. |
|---|---|
| Restricted tender | Candidates are pre-selected: only those admitted receive the documents. Allows contractors to be targeted and the number of offers to analyse to be reduced. |
| Adapted procedure | For contracts below the European thresholds. The client defines the publicity and competition arrangements itself. |
| Negotiated procedure | Allows terms to be negotiated with one or more operators. Used notably for design appointments. |
| Competitive dialogue | Reserved for particularly complex projects. Allows a deep dialogue with the selected candidates before offers are submitted. |
The routes to market
The main contractor
A main contractor is a single party taking on the whole of the works and managing its own subcontractors. Advantages: a single interlocutor, a single liability, a controlled programme. Disadvantages: generally higher prices, less flexibility over who does the work.
Separate packages
With separate packages the client contracts individually with each trade. This is the default route on public contracts. Advantages: better control of prices, access to smaller firms. Disadvantages: more complex coordination, with the site coordinator's role essential.
Consortia
Consortia may be joint and several, where each firm is liable for the whole contract, or several, where each is liable only for its own part. They allow smaller firms to bid for contracts beyond their individual capacity.
To go further: main contractor against separate packages · Subcontracting in works contracts
The contract documents
| Technical specification | Describes each item technically: materials, installation, standards, testing. |
|---|---|
| Administrative conditions | Defines the conditions of execution: programme, damages, payment terms, retention, insurance. |
| Pricing schedule | The pricing document on a lump-sum contract. |
| Priced bill and schedule of rates | Used on remeasurable contracts or on call-off contracts. |
| Form of agreement | Signed by the candidate to validate its offer and commit to the terms proposed. |
To go further: Writing the specification and the conditions of contract · The types of public construction contract
Strategies for a successful tender
Take care over the tender documents
An incomplete or ambiguous package generates imprecise offers and expensive variations during construction. Investing in the quality of the written documents, the specification above all, is one of the best returns available in cost control.
Calibrate the number of candidates
Three to five candidates per package is the optimal calibration for most projects. Too few reduces competition; too many discourages the best contractors.
Optimise the tender calendar
A tender launched in autumn or at the start of the year, when activity is lower, statistically produces more competitive offers than one launched in spring.
Hold a questions and answers session
On complex contracts, a site visit and a question session, with the answers circulated to every candidate, reduce uncertainty and produce more precise and comparable offers.
To go further: How a construction tender works
Back to the main guide: Construction economics
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The thresholds given are those applicable in France for 2026–2027. The European thresholds are revised every two years by decree, and the national exemption thresholds move separately. Check the thresholds in force before any tender.
The nature of the figures quoted
The percentages and amounts quoted on this page are orders of magnitude for framing, not measurements. They illustrate mechanisms and proportions, and they substitute neither for a tender exercise nor for an estimate prepared on drawings.
Sources: the BT construction cost indices published monthly by INSEE on its 2010 base, used to update the figures · construction cost statistics from SDES, the statistical service of the ministry responsible for construction · regulatory texts published in the Journal officiel and consolidated on Légifrance for the requirements cited.