German government proposes relaxing tendering requirements in military construction drive

Germany’s cabinet approved a draft law yesterday (23 July) aimed at accelerating defence procurement and construction, in response to Russia’s war in Ukraine.

Germany’s defence minister Boris Pistorius said, “With this draft law, we are removing many of the constraints that have prevented us from moving even faster,”

“We can now truly focus on what matters in the interest of the Bundeswehr’s defence capability and equipment.”

The proposed legislation has been broadly welcomed by Germany’s construction industry.

Tim-Oliver Müller, managing director of German construction association Bauindustrie, said, “Boris Pistorius wants to implement a gigantic construction program so that the Bundeswehr, as a strong NATO partner, can be ready if the worst comes to the worst.”

He added that the plan was the “right” move but noted that the German government also needed to smooth the path for construction projects to move forward.

He said, “This will require enormous investments in the coming years, which will have an additional impact on the entire construction industry. There is therefore broad consensus that new approaches are needed due to planning bottlenecks, understaffed construction authorities, and productivity requirements. The goal must be to build more with fewer people in the future in order to cope with the modernisation of military and civilian infrastructure. This requires a new legal basis to implement projects quickly, efficiently, and effectively.”

Meanwhile, Felix Pakleppa, managing director of Das Deutsche Baugewerbe, which represents smaller construction firms in Germany warned that SMEs should not be left out of the process.

He criticised a proposal in the draft law for a blanket suspension of the “lottery principle”. The “Lotto-Prinzip” allows for contract awards to occastionally be made by drawing lots among technically and commercially equivalent bids, giving SMEs the opportunity to win work over larger rivals.

Pakleppa said, “The suspension of the lottery principle and bundled procurement are understandable for military procurement – for example, for equipment, technology, or systems to strengthen defense capabilities. However, construction projects, real estate, and other non-military projects must not be subject to blanket exception.”