SMEs make up 99.8% of Belgian businesses, yet they win less than half of the total value of public contracts. The legislator has taken several measures in recent years to narrow this gap. Two pillars are central: the division into lots (which has existed since the 2016 act) and the Act of 22 December 2023 which specifically strengthens SME access through advance payments, bid fees and transparency.
In this article we explain both pillars, with concrete implications for contractors looking to compete.
Lots: splitting contracts for broader access
The legal basis
Article 58 of the Public Procurement Act 2016 requires contracting authorities to assess whether division into lots is justified for contracts with an estimated value of at least €143,000 (excl. VAT). There is no absolute obligation to provide lots, but if the authority decides not to divide into lots, that choice must be justified in the procurement documents.
How does it work in practice?
A contract for the renovation of a municipal building can be split into lots: structural work, electrical installation, HVAC, painting, and finishing. Instead of one large contract that only contractors with a high accreditation class can handle, it becomes multiple smaller contracts that are also feasible for specialised SMEs.
Each lot receives its own CPV code, its own selection and award criteria, and its own estimated value. As a contractor, you can choose to tender for one lot, several, or all.
Advantages for SMEs
Lower accreditation requirements. A lot of €200,000 requires a lower accreditation class than a total contract of €1,500,000. This makes it accessible to more contractors.
Specialised expertise. SMEs are often stronger in a specific domain than large generalists. Lots allow you to compete on your strongest point.
Lower financial standing required. For a smaller lot, turnover requirements are proportionally lower. An authority may not require millions in turnover for a lot of €50,000.
The obligation to justify
If an authority decides not to divide a contract above €143,000 into lots, the specifications must contain a justification. Valid reasons may include: the contract is technically indivisible, coordination of lots would hinder execution, or the market has insufficient suppliers for individual lots. A justification such as “it is administratively simpler” is insufficient.
The Act of 22 December 2023: three new measures
In addition to the existing lots regulation, the legislator introduced three additional measures in December 2023 to improve SME access. The act was published in the Belgian Official Gazette on 8 January 2024.
1. Mandatory advance payments
The most important measure. Certain contracting authorities — the federal State, regions, communities, local authorities and institutions they finance — are now required to pay advance payments to the contractor.
There are two scenarios:
For the negotiated procedure without prior publication (typically smaller contracts): an advance payment is mandatory, regardless of the contractor’s size.
For all other procedures: an advance payment is mandatory if the contractor is an SME. The minimum percentage depends on company size:
| Category | Definition | Minimum advance |
|---|---|---|
| Micro-enterprise | < 10 employees, turnover ≤ €2m | 20% |
| Small enterprise | < 50 employees, turnover ≤ €10m | 10% |
| Medium enterprise | < 250 employees, turnover ≤ €50m | 5% |
The advance payment is capped at 20% of the contract value and never exceeds €225,000.
Exceptions: No advance payment for contracts combining financing and execution, leasing or hire-purchase, insurance services, subscriptions or periodic consumption, and contracts with an execution period shorter than two months.
Entry into force: 1 January 2024, for contracts launched from that date.
2. Mandatory bid fee
When a tender must be accompanied by samples, models, prototypes, drawings or other designs, the authority is now required to pay a bid fee to tenderers. This recognises that preparing such tenders requires a significant investment, especially for SMEs.
The obligation does not apply to the open procedure or the simplified negotiated procedure with prior publication.
Entry into force: 1 February 2024.
3. Transparency — provisional ranking
For open and restricted procedures below the European threshold, where price is the sole award criterion, the authority must communicate the individual position in the provisional ranking immediately after the opening of tenders. This gives tenderers faster insight into their competitive position and prevents weeks of uncertainty.
Entry into force: 1 June 2024.
What does this mean for you as an SME?
Actively search for contracts divided into lots. In TenderWolf you can filter on individual lots. Sometimes an overall contract is too large for you, but a specific lot is perfectly feasible.
Use your SME status for advance payments. If you win a contract and you meet the SME definition, you are entitled to an advance payment. Check at the start of execution whether the authority applies this correctly.
Calculate bid costs in advance. If specifications require samples or prototypes, check whether a bid fee is provided. If not, this may be a breach of the Act of 22 December 2023 (except for excluded procedures).
Check the justification for non-division. If a contract above €143,000 is not divided into lots and the justification is missing or insufficient, this may be grounds for an objection.