functional requirements

Functional requirements are requirements that describe what a delivery must achieve — its intended results and effects — without specifying exactly how the solution should be designed. They are the opposite of detailed technical specifications, where the contracting authority prescribes specific dimensions, materials, or methods. In EU/EEA public procurement, functional requirements are the preferred way to formulate specifications.

How do functional requirements work?

When a contracting authority uses functional requirements, they communicate the need without locking suppliers into a particular solution. Think of it as the difference between saying "we need to reduce noise levels by 10 decibels" (functional requirement) and "we need a 3-metre concrete noise barrier" (detailed specification). This approach gives suppliers the freedom to apply their expertise, technology, and creativity to propose the optimal solution.

Under EU Directive 2014/24/EU (Article 42), technical specifications must be formulated as performance or functional requirements, as references to technical standards followed by "or equivalent", or as a combination of the two. The Directive shows a clear preference for functional and performance-based specifications to promote open competition.

Benefits of functional requirements

• Promotes innovation — suppliers can offer creative solutions the contracting authority may not have considered
• Increases competition — more suppliers can participate because they are not bound to a specific technology or method
• Better value for money — suppliers optimise the solution themselves, potentially lowering life cycle costs
• Supports green procurement — environmental criteria like "zero emissions" or "maximum energy consumption" are typical functional requirements

Suppliers must demonstrate in a suitable manner that their bid meets the stated functional requirements. If a supplier's offering meets a standard intended to cover the requirements, the contracting authority cannot reject it. Tools like Cobrief can help analyse tender documents and quickly identify functional requirements, making it easier for suppliers to understand what is expected.

Functional requirements are a key instrument for ensuring that public procurement delivers the best possible value. By focusing on needs and outcomes rather than prescriptive solutions, contracting authorities foster competition, innovation, and cost-effective deliveries.