How do public tenders work in Iceland?

Law and buyers

Iceland implements the EU procurement directives through the EEA Agreement. The main law is Lög um opinber innkaup nr. 120/2016 (the Public Procurement Act), with regulations for utilities, defence and security, and thresholds. Buyers include state agencies, municipalities and public companies. Since 1 August 2024, Fjársýsla ríkisins (Fjársýslan, the Financial Management Authority) has taken over the tasks of the former central purchasing body Ríkiskaup. State agencies in the A1 and A2 parts of the treasury must buy through Fjársýslan, which runs tenders and framework agreements, while municipalities may use it voluntarily. Reykjavík and large state-owned companies such as Landsvirkjun and RARIK frequently run their own tenders.[1][5][12]

Where tenders are published

Procurements above the national thresholds must be advertised on Útboðsvefur (utbodsvefur.is), the national tender portal, where suppliers can also subscribe to notices by sector. Above the EEA thresholds notices are also published on TED. Fjársýslan runs its tenders in TendSign, an electronic tendering system provided by Mercell: suppliers register there to access documents and submit bids, and registering does not commit them to bidding. Reykjavík, Landsvirkjun, RARIK and some other buyers use their own portals or other platforms. Searching Útboðsvefur and TED is free, and Fjársýslan's guidance does not mention any fee for registering in TendSign.[3][4][9][10]

Procedures and thresholds

The Act provides the directive procedures: almennt útboð (open procedure), lokað útboð (restricted procedure), samkeppnisviðræður (competitive dialogue), samningskaup (negotiated procedure) and nýsköpunarsamstarf (innovation partnership). Above the national thresholds a procurement must be tendered in Iceland, and above the EEA thresholds across the whole EEA. Since 2025, the national thresholds for supplies and services are the same as the EEA thresholds, so these contracts are tendered across the EEA once they reach that level, while works have a lower national threshold. Social and other specific services have a separate, higher threshold. Framework agreements (rammasamningar) run by Fjársýslan are widely used by state agencies.[1][2][3][12]

Documents and language

Bidders can either upload documents in TendSign or complete the European Single Procurement Document (ESPD), which can be reused across tenders. According to Fjársýslan, typical evidence includes certificates that pension fund contributions are up to date, a tax clearance certificate from Skatturinn (the tax authority), and company registry certificates and information. If your bid is selected, you must provide these documents to confirm eligibility. Tender documents are usually in Icelandic, while EEA-wide tenders, especially large ones, are often also published in English; the tender documents state the accepted languages. Foreign bidders may submit equivalent documents from their home country.[1][4]

Deadlines, award and challenges

Above the EEA thresholds the minimum time limits follow the EU directives, which for an open procedure means 35 days from sending the notice, reduced to 30 days when tenders are submitted electronically. After the award decision there is a standstill period (biðtími) of 5 days for contracts above the national threshold and 10 days for contracts above the EEA threshold. A complaint filed during the standstill automatically stops the contract from being signed until the Public Procurement Complaints Board (Kærunefnd útboðsmála) decides. Complaints must be filed in writing within 20 days of learning of the decision, and a fee applies. Rejected bidders can request written reasons within 14 days.[1][6][11]

How to win a tender in Iceland

In Iceland the most economically advantageous bid is the valid bid that meets all minimum requirements and scores highest under the weighting set in the tender documents, which can combine price and extra quality requirements. Bids may not be assessed on any grounds not stated in the documents, so the scoring model tells you exactly where points are available. Send questions and comments through TendSign as early as possible and before the question deadline; questions published without your name and the answers become part of the tender documents for everyone. Iceland offers unusual price transparency: opening minutes listing bidders and their total amounts are usually published about an hour after the deadline, and Fjársýslan also publishes tender results. Use these, together with Útboðsvefur and TED, to understand earlier winners and price levels. Write in Icelandic unless English is accepted, and never put a reservation on the validity of your bid. Bids fail on late submission, missing documents, unmet minimum requirements, failed financial checks and reservations. An abnormally low bid must be investigated and cannot be rejected only for being a set percentage below average. If you lose, request written reasons within 14 days; the buyer must answer within 15 days, and the standstill period can be as short as 5 days.[1][7][8][10]

1. Map where points are available in the scoring model of the tender documents.
2. Send questions through TendSign early, before the question deadline.
3. Study opening minutes and earlier tender results for winners and price levels.
4. Write in the accepted language and add no reservations on bid validity.
5. Check minimum requirements and financial documents before submitting.
6. Request written reasons within 14 days and act quickly within the standstill.

Clarification round: Fyrirspurnir (questions during the tender period)

Tips for bidders

Subscribe to notices on Útboðsvefur and register in TendSign early, since most central government tenders run there. Also monitor the own portals of Reykjavík, Landsvirkjun and RARIK, which together account for a noticeable share of Icelandic notices on TED. Prepare the Icelandic tax and pension certificates or equivalent foreign documents in advance, as they are requested before or shortly after award. Check whether the buyer accepts English; if not, budget for professional translation into Icelandic. Remember that the standstill period for national-level contracts is only 5 days, so act quickly if you want to challenge an award. Partnering with a local firm can help with language, logistics and permits.[1][4][9]

Platforms in Iceland

Share of the 409 TED notices from 2025 whose documents sit on this platform.

• Mercell (incl. TendSign, EU-Supply, ETHICS, Cloudia)58.7%

  Buyers using Mercell's tendering tools (TendSign, EU-Supply and others) publish openly; suppliers log in to submit, with country-specific support pages per market.

  How it works →Website

• Reykjavík (own portal)10%

  The City uses its own tender portal (utbod.reykjavik.is, In-tend); register via 'Nýskráning', ask questions and submit bids only through the portal.

• In-tend10%

  In Iceland mainly the City of Reykjavík's portal (utbod.reykjavik.is); register via 'Nýskráning', questions and bids go only through the portal.

  How it works →

• RARIK (own portal)5.6%

  RARIK publishes tenders on its own tender website utbod.rarik.is (In-tend based); bid openings and accepted bids are listed on rarik.is.

  How it works →

• Landsvirkjun (own portal)4.2%

  Landsvirkjun uses its own tender website (In-tend based, utbod.landsvirkjun.is) for all tender communication; you must register and sign in to participate.

  How it works →

Frequently asked questions

Sources

1. Lög um opinber innkaup nr. 120/2016, Alþingi
2. Reglugerð nr. 495/2026 um breytingu á reglugerð nr. 360/2022 (thresholds, published 19 May 2026)
3. Reglugerð nr. 360/2022 um útboðsvef, viðmiðunarfjárhæðir o.fl.
4. Ísland.is: Að taka þátt í útboði (Fjársýslan)
5. Fjársýsla ríkisins tekur við verkefnum Ríkiskaupa
6. Kærunefnd útboðsmála
7. Ísland.is – Útboð (Fjársýslan: questions, evaluation, abnormally low bids, opening minutes)
8. Ísland.is – Niðurstöður útboða
9. Útboðsvefur
10. TED – Tenders Electronic Daily (EU notices and award notices)
11. Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on public procurement
12. island.is

Checked on 15 October 2026. Made by TenderRender from official sources. Not legal advice: check the notice and documents of each tender.

As data:MarkdownJSONllms.txtCC BY 4.0

Ask an AI:ChatGPTClaudePerplexityGoogle