Sustainability and working conditions in public procurement

Sustainability in the purpose of the law

Among other things, the PPA aims at an economical use of public funds that is sustainable in economic, ecological and social terms (PPA Art. 2 let. a). The IAPP 2019 sets the same purpose for cantons and municipalities (IAPP Art. 2 let. a). The other purposes are transparency, equal treatment and effective, fair competition (PPA Art. 2 let. b to d).

What you have to meet in practice follows from the articles below and from the individual tender.

Occupational safety, working conditions and equal pay

For services performed in Switzerland, a public contract is only awarded to bidders that comply with the occupational safety provisions and working conditions applicable at the place of performance, the reporting and authorisation duties under the Federal Act on Undeclared Work and equal pay for women and men (PPA Art. 12 para. 1). The IAPP requires the same but refers to the provisions applicable in Switzerland (IAPP Art. 12 para. 1).

Working conditions are the mandatory provisions of the Code of Obligations on employment contracts, the normative provisions of collective and standard employment contracts or, where there are none, the working conditions customary for the location and the sector. Occupational safety provisions include the Employment Act and the rules on accident prevention (PPA Art. 3 let. d and e; IAPP Art. 3 let. d and e).

These duties are part of the participation conditions: the contracting authority ensures that you and your subcontractors meet them during the procedure and when performing the contract (PPA Art. 26 para. 1; IAPP Art. 26 para. 1). Subcontractors must comply with the requirements too, and this belongs in your contracts with them (PPA Art. 12 para. 4; IAPP Art. 12 para. 4).

Services abroad and environmental law

If a service is performed abroad, the law requires at least compliance with the core conventions of the International Labour Organization (ILO), for example on forced labour, child labour and equal remuneration. The contracting authority may require further important labour standards and ask for proof (PPA Art. 12 para. 2 and Annex 6; IAPP Art. 12 para. 2 and Annex 3).

You must also comply at least with the rules on protecting the environment and conserving natural resources that apply at the place of performance, in Switzerland Swiss environmental law (PPA Art. 12 para. 3; IAPP Art. 12 para. 3).

Checks and consequences

The contracting authority may check compliance itself or have third parties do so, unless another body is already responsible, such as a joint employer-employee supervisory body. On request, you must provide the necessary proof (PPA Art. 12 para. 5; IAPP Art. 12 para. 5). At federal level, it may hand the check on equal pay to the Federal Office for Gender Equality and forward your self-declaration on it (PPO Art. 4 para. 1).

If there are sufficient indications that a bidder disregards these provisions or the reporting and authorisation duties under the Act on Undeclared Work, the contracting authority may exclude it from the procedure or revoke an award (PPA Art. 44 para. 2 let. f and g; IAPP Art. 44 para. 2 let. f and g). The same applies if a bidder resists ordered checks (PPA Art. 44 para. 1 let. f).

In serious cases, a bidder can be excluded from future public contracts for up to five years; in minor cases a warning may be issued (PPA Art. 45 para. 1). Under the IAPP, a fine of up to ten percent of the adjusted bid amount is also possible instead of exclusion (IAPP Art. 45 para. 1).

Sustainability as an award criterion

Besides price and quality, the law lists a range of possible award criteria, including life cycle costs and sustainability (PPA Art. 29 para. 1; IAPP Art. 29 para. 1). The contracting authority states in the tender or in the documents which criteria count and how much (PPA Art. 29 para. 3; IAPP Art. 29 para. 3).

Outside the scope of international treaties, it may additionally take into account whether you offer training places for apprentices, jobs for older workers or reintegration for the long-term unemployed (PPA Art. 29 para. 2; IAPP Art. 29 para. 2).

Only for standardised services may the lowest price alone decide, and for the Confederation only if the technical specification ensures high social, ecological and economic sustainability requirements (PPA Art. 29 para. 4). The IAPP does not set this condition (IAPP Art. 29 para. 4). How scoring works is explained in the guides “Eligibility and award criteria” and “Price scoring”.

Technical specifications

In the tender or the documents, the contracting authority sets the technical specifications, such as function, performance, quality, safety or production methods (PPA Art. 30 para. 1). At federal level, where appropriate, it provides for specifications to conserve natural resources or protect the environment; this has applied since 1 January 2025 (PPA Art. 30 para. 4). Under the IAPP it may provide for such specifications (IAPP Art. 30 para. 4).

If your bid deviates significantly from binding requirements, it can be excluded (PPA Art. 44 para. 1 let. b).

The contracting authority may only require a specific brand or type if there is no other sufficiently precise way to describe the service, and then with the words “or equivalent”. If you offer an equivalent product, you must prove the equivalence (PPA Art. 30 para. 3; IAPP Art. 30 para. 3).

What to have ready

• A self-declaration on occupational safety and working conditions, equal pay, environmental law and preventing corruption. The contracting authority may have the participation conditions proven this way (PPA Art. 26 para. 2); the Confederation lists these declarations among the possible proofs (PPO Art. 4 para. 4 and Annex 3 no. 1).
• Confirmation that social security contributions and taxes are paid (PPO Annex 3 no. 2).
• The collective or standard employment contract that applies to your staff. It is part of the working conditions (PPA Art. 3 let. d).
• A clause in your contracts with subcontractors that they meet the same requirements (PPA Art. 12 para. 4).
• Figures on energy consumption, maintenance and service life, if life cycle costs are scored.
• Data sheets, standards and certificates for the technical specifications, and with “or equivalent” the proof of equivalence.
• The timing: the tender or the documents state when each proof is due (PPA Art. 26 para. 3).
• TEXFY shows the eligibility and award criteria on the detail page, as far as simap provides them.