# Tenders and grants: how they differ

> A tender buys work from a company; a grant funds a project. Who publishes each, how you take part, what you sign and which documents to expect.

*Guide · 6 min read. Published 23 October 2026. Last reviewed 23 October 2026. Bandpey GmbH.*

A public tender is a purchase: a public buyer needs something done and pays for it under a contract. A grant is a contribution: a funder supports a project because it serves a policy goal. Knowing which one you face tells you who decides, by which rules, and what you sign.

## What a public tender is

In a public tender, a public body buys works, supplies or services and pays for them. EU procurement law describes a public contract as a written contract for payment between one or more companies and one or more **contracting authorities**: the state, regional and local authorities, and bodies governed by public law ([Directive 2014/24/EU, Article 2](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32014L0024)).

The buyer describes what it needs, publishes a notice and compares the tenders it receives. Under EU rules the contract goes to the most economically advantageous tender. That can mean the lowest price or cost, or the best price-quality ratio judged on criteria such as quality, environmental or social aspects (Article 67 of the same directive).

Which rules apply depends on the value. From the [EU thresholds](https://single-market-economy.ec.europa.eu/single-market/public-procurement/legal-rules-and-implementation/thresholds_en) upwards, the EU directives set the minimum rules; in Germany they are implemented in Part 4 of the Act against Restraints of Competition (GWB) and the procurement regulations based on it ([Federal Procurement Office](https://www.bescha.bund.de/e-Vergabe/DE/4%20Vergabestellen/Informationen-zu-eForms/artikel_eForms.html)). Below the thresholds, national rules apply. For federal supplies and services that is the UVgO ([Federal Procurement Office](https://www.bescha.bund.de/e-Vergabe/DE/4%20Vergabestellen/Timeline/daten/5.html)); in the Länder it applies only where their own budget law or procurement act says so ([explanatory notes to the UVgO](https://www.berlin.de/vergabeservice/vergabeleitfaden/rundschreiben/assets/unterschwellenvergabeordnung-uvgo-erlaeuterungen.pdf)).

## What a grant or funding call is

A grant works the other way round. As the European Commission puts it: with a contract, the buyer receives a product or service it needs in return for payment; with a grant, the funder contributes to a project run by another organisation because that project supports its policy goals ([EU funding for beginners](https://commission.europa.eu/funding-and-tenders/how-apply/you-apply-eu-funding-beginners_en)).

EU grants are offered through **calls for proposals**. They require a written agreement signed by both parties and, as a rule, co-financing by the beneficiary; they may not generate a profit, and actions already completed are not funded ([Commission: grants and procurement](https://commission.europa.eu/strategy-and-policy/eu-budget/how-it-works/annual-lifecycle/implementation/grants-and-procurement_en)).

In Germany, the Federation and the Länder run their own funding programmes, each with its own guideline and information sheets. The federal [Förderdatenbank](https://www.foerderdatenbank.de/FDB/DE/Home/home.html) gives an overview of programmes from the Federation, the Länder and the EU. Its advice: send applications for grant programmes to the granting authority or the project management agency named in the programme, and apply before your project starts, because commitments made before the application are generally not funded ([Förderdatenbank FAQ](https://www.foerderdatenbank.de/FDB/DE/Service/FAQ/faq.html)).

Approved federal project funding comes with conditions: the general ancillary provisions for project funding (ANBest-P) become part of the grant decision (Zuwendungsbescheid) unless it says otherwise, and set out how the money is requested, used and accounted for ([ANBest-P](https://www.bva.bund.de/SharedDocs/Downloads/DE/Aufgaben/ZMB/Zuwendungen_national/Nebenbestimmungen/nebenbestimmungen_anbest_p_2026.pdf?__blob=publicationFile&v=5)).

## The key differences

- **What you sign**: Tender: a contract for payment, with the conditions of contract set out in the procurement documents. Grant: a written agreement for EU grants, or a grant decision for federal project funding in Germany, with conditions on how the money is used and reported.
- **Who is on the other side**: Tender: a buyer that needs the work done. Grant: a funder running a programme, such as a ministry, an agency, the European Commission, or a project management agency acting for them.
- **How you are chosen**: Tender: the buyer checks that you are not excluded, that you meet the selection criteria (such as economic and financial standing, or technical and professional ability) and that your tender complies with the documents; then the award criteria decide (Articles 56 to 58 of the directive). Grant: the proposal must be admissible and eligible under the call conditions before it is evaluated ([Funding & Tenders Online Manual](https://webgate.ec.europa.eu/funding-tenders-opportunities/spaces/OM/pages/1867931/Admissibility+and+eligibility+check)).
- **Money**: Tender: the buyer pays the agreed price for what you deliver. Grant: the funder contributes to the costs of your project; for EU grants you usually contribute too.
- **Deadline**: Tender: a time limit for tenders or for requests to participate, with a date, a time and a time zone. Grant: a deadline for proposals or applications; for German programmes, also the rule to apply before the project begins.

## Typical documents

### For a tender

- The contract notice: the buyer, the subject, lots, time limits and the internet address of the documents.
- The procurement documents: usually the invitation to tender, the conditions of participation and the contract documents, meaning the technical specifications (in German, the Leistungsbeschreibung) and the conditions of contract ([Federal Procurement Office glossary](https://www.bescha.bund.de/DE/Service/Beschaffungs_ABC/Beschaffungs_ABC_inhalt.html)).
- For EU-wide procedures, the European Single Procurement Document (ESPD), a self-declaration of your capacity; proof is requested if you win ([Your Europe](https://europa.eu/youreurope/business/selling-in-eu/public-contracts/search-bid-public-tender/index_en.htm)).
- Answers to bidders’ questions and any corrections the buyer publishes during the procedure.

### For a grant

- The call or the funding guideline: who may apply, what is funded, how much and until when.
- For EU calls, the topic page on the Funding & Tenders Portal, with the call conditions, the legal framework, key documents and a standard application form ([Online Manual: find a call](https://webgate.ec.europa.eu/funding-tenders-opportunities/spaces/OM/pages/1867921/Search+funding+opportunities+%E2%80%94+Find+a+call)).
- The conditions that apply if you are funded, such as the ANBest-P for federal project funding.
- Reporting duties: for federal project funding, the proof of use (Verwendungsnachweis) consists of a factual report and a numerical statement ([ANBest-P, no. 6](https://www.bva.bund.de/SharedDocs/Downloads/DE/Aufgaben/ZMB/Zuwendungen_national/Nebenbestimmungen/nebenbestimmungen_anbest_p_2026.pdf?__blob=publicationFile&v=5)).

## Where the two meet

A grant recipient may itself have to tender. Under the ANBest-P, recipients of federal project funding award contracts competitively and on economic terms, and where the project is mostly publicly funded and the grant is more than €175,000, they must apply procurement rules such as the UVgO ([ANBest-P, no. 3](https://www.bva.bund.de/SharedDocs/Downloads/DE/Aufgaben/ZMB/Zuwendungen_national/Nebenbestimmungen/nebenbestimmungen_anbest_p_2026.pdf?__blob=publicationFile&v=5)).

One portal can also list both. Besides calls for proposals, the EU Funding & Tenders Portal hosts calls for tenders for EU procurement ([Online Manual: find a call](https://webgate.ec.europa.eu/funding-tenders-opportunities/spaces/OM/pages/1867921/Search+funding+opportunities+%E2%80%94+Find+a+call)). Check first which of the two you are looking at.

## Questions to ask first

1. Is this a purchase, or a contribution to a project?
2. Who publishes it, and which rules does the notice or the call name?
3. Does your organisation meet the conditions as written in the official documents? Read them yourself, not a summary.
4. When is the deadline, in which time zone, and has it changed?
5. Where are the full documents, and who answers questions?

> This guide explains the general framework and is not legal advice. For each opportunity, the official notice or call and its documents are authoritative.

Inteliwert [searches German public tenders](https://inteliwert.com/search) from the Bekanntmachungsservice, imported every day, with each result linked to its official notice. Whether an opportunity suits you stays your decision, made on the official documents.

## Sources

- [Directive 2014/24/EU on public procurement](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32014L0024): definitions (Article 2), selection and award (Articles 56 to 58, 67).
- [European Commission: thresholds](https://single-market-economy.ec.europa.eu/single-market/public-procurement/legal-rules-and-implementation/thresholds_en): the EU thresholds for 2026 and 2027.
- [Federal Procurement Office: eForms](https://www.bescha.bund.de/e-Vergabe/DE/4%20Vergabestellen/Informationen-zu-eForms/artikel_eForms.html): where German law implements EU procurement rules.
- [Federal Procurement Office: UVgO](https://www.bescha.bund.de/e-Vergabe/DE/4%20Vergabestellen/Timeline/daten/5.html): the UVgO for federal supplies and services below the thresholds.
- [Federal Procurement Office: glossary](https://www.bescha.bund.de/DE/Service/Beschaffungs_ABC/Beschaffungs_ABC_inhalt.html): procurement documents, procedures and other terms.
- [Explanatory notes to the UVgO (2017)](https://www.berlin.de/vergabeservice/vergabeleitfaden/rundschreiben/assets/unterschwellenvergabeordnung-uvgo-erlaeuterungen.pdf): how the UVgO takes effect at federal and Länder level.
- [European Commission: EU funding for beginners](https://commission.europa.eu/funding-and-tenders/how-apply/you-apply-eu-funding-beginners_en): contracts compared with grants.
- [European Commission: grants and procurement](https://commission.europa.eu/strategy-and-policy/eu-budget/how-it-works/annual-lifecycle/implementation/grants-and-procurement_en): principles of EU grants and calls for proposals.
- [Förderdatenbank des Bundes](https://www.foerderdatenbank.de/FDB/DE/Home/home.html) and its [FAQ](https://www.foerderdatenbank.de/FDB/DE/Service/FAQ/faq.html): German funding programmes and how to apply.
- [ANBest-P (Federal Office of Administration)](https://www.bva.bund.de/SharedDocs/Downloads/DE/Aufgaben/ZMB/Zuwendungen_national/Nebenbestimmungen/nebenbestimmungen_anbest_p_2026.pdf?__blob=publicationFile&v=5): conditions for federal project funding.
- [Funding & Tenders Online Manual: find a call](https://webgate.ec.europa.eu/funding-tenders-opportunities/spaces/OM/pages/1867921/Search+funding+opportunities+%E2%80%94+Find+a+call) and [eligibility check](https://webgate.ec.europa.eu/funding-tenders-opportunities/spaces/OM/pages/1867931/Admissibility+and+eligibility+check): EU calls and topic pages.
- [Your Europe: search and bid for a public contract](https://europa.eu/youreurope/business/selling-in-eu/public-contracts/search-bid-public-tender/index_en.htm): taking part in a tender and the ESPD.

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