fundamental principles of procurement

The fundamental principles of procurement are the core rules governing how public contracts must be awarded. Under EU Directive 2014/24/EU (Article 18), contracting authorities must treat economic operators equally and without discrimination, and act in a transparent and proportionate manner. These principles form the legal foundation for all public procurement procedures across the EEA.

How do the fundamental principles work?

The principles serve two essential functions. First, they create standalone rights and obligations — the Court of Justice of the EU (CJEU) and national review bodies like KOFA regularly derive specific duties directly from the principles. Second, they guide the interpretation of individual provisions throughout the procurement framework.

Competition requires that contracts are awarded through competitive procedures to ensure efficient use of public funds. Equal treatment means all suppliers must receive the same information and be assessed against identical criteria. Transparency demands that tender documents clearly state what is being procured, the participation requirements, and the award criteria that will be applied. Non-discrimination prohibits treating suppliers differently based on nationality — covering both direct and indirect discrimination. Proportionality ensures that requirements imposed on suppliers are reasonable in relation to the contract's nature, scope, and value.

Why are the principles important?

• They give suppliers legal certainty and predictable conditions
• They prevent favouritism, corruption, and unjustified discrimination
• They ensure efficient use of public funds
• Breaches can be challenged through review bodies or courts

The principles originate from EU Treaty freedoms and apply even to contracts below the EU threshold values where there is potential cross-border interest. In Norway, these principles are codified in the Public Procurement Act Section 4. Tools like Cobrief help suppliers track procurement opportunities where these principles are particularly relevant.

The fundamental principles are the bedrock of public procurement law across the EEA. They ensure that competition for public contracts takes place on a level playing field — giving suppliers confidence that processes are fair, transparent, and open to scrutiny.