What happened
According to El Cierre Digital, in the first half of 2026, public works in Spain left 1,130 tenders unawarded, which is equivalent to about 188 per month. In addition, 747 contracts received only a single bid. This phenomenon is mainly due to companies' difficulty in taking on contracts with prices set years ago that do not reflect current cost increases.
The article highlights that the most affected sectors are those that depend on public contracts, such as nursing homes, home care, and cleaning. Companies in these sectors face reduced margins because contract prices cannot be updated at the pace of rising costs, which leads many of them not to bid on new tenders.
The Confederación Nacional de la Construcción (CNC) points out that the gap between current costs and award prices is creating a hole in public procurement. This problem affects not only construction but also essential services that depend on contracts with public administrations.
Why it matters to a construction company
The impact of unawarded tenders is significant for construction companies, especially small and mid-sized ones. These companies depend on public contracts to keep their operations running, and any interruption in awards can affect their workflow and financial stability.
In a market where material and labor costs are constantly rising, construction companies are forced to adjust their strategies to stay competitive. The lack of price updates in public contracts makes many awards unattractive, which reduces competition and limits business opportunities.
The practical consequence is that construction companies must be more selective about the tenders they bid on. This means carefully assessing the financial and operational risks before deciding to take part in a tender, which can lead to a decrease in the number of projects they are involved in.
What changes in day-to-day site work
For construction companies, the most immediate change is the need to adjust their workflows to cope with uncertainty in contract awards. This may include implementing more efficient systems for cost tracking and project management, which allow them to react quickly to changes in material and labor prices.
When it comes to budgets, companies need to be more precise in their quantity takeoffs and payment certificates. This requires more rigorous planning and the use of management tools that allow detailed, real-time cost control, ensuring that each project stays within budget limits.
Those who notice these changes first are site managers and administration managers. They are the ones who must deal with the pressure of meeting deadlines and budgets in an increasingly challenging environment, where the margin for error is minimal and competition is fierce.
Specific cases
Imagine a construction company that wins a contract to build a senior residence. Over time, material and wage costs go up, but the contract price stays fixed. The company faces reduced margins and must decide whether it can continue with the project without incurring losses.
Some companies have started to adopt proactive strategies to mitigate these risks. This includes negotiating price revision clauses in contracts and looking for suppliers that offer more flexible terms. These measures can help ensure the long-term viability of projects.
For these strategies to work, it is essential that companies maintain open communication with public administrations. This may involve taking part in discussion forums on the reform of the Ley de Contratos del Sector Público, seeking a more flexible framework that allows contract prices to be adjusted according to changes in costs.
Data and context
El Cierre Digital reports that in 2025, 7.78% of public contract lots were declared unawarded, which represents 24,047 lots out of a total of 309,023. This figure reflects a worrying trend in the public procurement sector, where the lack of bids is increasingly common.
This situation is part of a broader trend of rising costs in the Spanish economy. Since 2018, the minimum wage has risen significantly, reaching 1,221 euros per month in 2026. This increase, together with other factors such as higher energy and food prices, is putting pressure on companies that depend on public contracts.
However, the data do not reveal the long-term impact of this trend on the sector's competitiveness. It is foreseeable that, if no changes are made to the regulations, the situation could lead to a decline in the quality of public services due to the lack of competition and the difficulty of attracting companies willing to take on the associated financial risks.
Risks and limits
The main risk for construction companies is taking on projects that become financially unviable because of rising costs. This can lead to breaches of contract, delays in project delivery and, ultimately, liquidity problems that threaten the stability of the company.
In some cases, taking part in public tenders may not pay off. This is especially true for projects with tight profit margins, where any increase in costs can wipe out the expected profits. Companies must carefully evaluate each opportunity to determine whether the risks outweigh the potential benefits.
From an organizational standpoint, companies must be prepared to handle the added complexity of operating in an uncertain public procurement environment. This may require investment in training and in improving internal management systems to ensure they can adapt quickly to changes in the market.
What a company can do now
Companies can start by reviewing their current and future project portfolios to identify those that could be affected by cost increases. This will allow them to make informed decisions about how to proceed with each contract and whether it is necessary to renegotiate terms or look for alternatives.
It is crucial to establish clear criteria for taking part in public tenders. These criteria should be based on a detailed assessment of the risks and benefits of each project, taking into account factors such as the company's financial stability and its ability to absorb cost increases.
A realistic next step for companies is to explore the possibility of taking part in free pilots with construction management systems such as Bloqbase. This will allow them to evaluate how these tools can help them improve operational efficiency and better manage the risks associated with public contracts.
Sources
El Cierre Digital: https://elcierredigital.com/economia/agujero-contratacion-publica-espana-180-concursos-obra-servicios-desiertos-cada-mes