consortium

A consortium is a group of independent companies that join forces to submit a joint bid in a public procurement procedure. The participating firms remain legally separate entities but act as a single supplier towards the contracting authority.

How does a consortium work?

EU Directive 2014/24/EU explicitly allows groups of economic operators to participate in procurement procedures together. The contracting authority may not require the consortium to adopt a specific legal form before contract award — only afterwards, if necessary for satisfactory performance. All consortium members are listed as contracting parties, making them legally equal partners. This distinguishes a consortium from a subcontracting arrangement, where only the main contractor holds the contract.

Consortium members can rely on each other's capacity and experience to meet qualification requirements, but each member must submit their own ESPD self-declaration. The consortium typically bears joint and several liability, meaning every member is responsible for the contract being fulfilled.

When is a consortium relevant?

Consortia are particularly useful in these situations:

• Large contracts: The project requires resources or capacity beyond what a single company can offer
• Cross-disciplinary needs: The contract spans different specialisms, such as engineering and architecture in a construction project
• SME access: Small and medium-sized enterprises can compete for contracts they could not handle alone

Competition law sets important boundaries. Companies that could each submit an independent bid may not lawfully form a consortium — this would be considered anti-competitive coordination. A consortium is only permissible when the members bring complementary capabilities that none of them possesses individually. The European Commission's Horizontal Guidelines clarify that the assessment must consider whether each party could realistically complete the contract on its own.

Tools like Cobrief help businesses identify relevant tender opportunities where consortium participation may be advantageous and keep track of the documentation requirements.

A consortium enables companies to take on larger and more complex contracts together. It is an important mechanism in public procurement regulation that promotes broader competition and opens up public contracts to a wider range of suppliers.