What happened
During the first half of 2026, the construction sector in Spain faced a significant problem: 1,130 public tenders went unawarded for lack of bidders, according to Infobae. This represents a total budget of 707 million euros left unawarded. The Confederación Nacional de la Construcción (CNC) attributes this phenomenon to a gap between the prices set by public administrations and the real execution costs.
The problem is aggravated by the escalation of material and energy prices, stemming from the conflict in the Middle East. In addition, 747 more procedures were awarded with a single bidder, adding up to 448 million euros in contracts without real competition. In total, 1,877 procedures with more than 1,155 million euros at stake had insufficient participation.
The CNC has warned the Government about the lack of automatic price revision mechanisms in public contracts. The organization proposes amending the Ley de Contratos del Sector Público to exclude public works from the Ley de Desindexación, allowing updates that guarantee the viability of projects.
Why it matters to a construction company
This phenomenon especially affects small and mid-sized construction companies, which depend heavily on public contracts for their business. The lack of bidders in tenders under 500,000 euros, which account for 82% of unawarded cases, indicates that the problem is not limited to large infrastructure.
The construction market already faces challenges from rising material and energy costs. Companies must adjust their budgets and strategies so as not to operate at a loss. The lack of price revision in short-term contracts, such as renovation work, aggravates the situation.
For construction companies, the practical consequence is clear: they must be more selective when choosing which tenders to pursue. The risk of cost overruns and the lack of real competition in some awards can lead to unsustainable financial situations.
What changes in day-to-day site work
The workflow changes significantly when a tender goes unawarded. Construction companies must invest more time in feasibility analysis before submitting bids, considering real costs and possible price fluctuations.
Budgets, quantity takeoffs and payment certificates must be more precise. Companies should consider the possibility of renegotiating contracts or looking for alternatives to secure adequate profit margins.
The first to notice these changes are the budget and site planning managers. They need to adjust their forecasts and strategies, making sure each project is financially viable before committing resources.
Specific cases
In Andalusia, 284 contracts received no bids, blocking a budget of 138 million euros. The employers' association CEACOP points out that the number of unawarded works has doubled compared to the previous year, due to rising material and energy costs.
Some companies are tackling the situation by diversifying their projects and optimizing their internal processes. However, the lack of price revision mechanisms remains a major obstacle.
For these strategies to work, it is crucial that companies have a clear view of their costs and margins. They must also be prepared to adapt quickly to changes in the market or in government policies.
Data and context
According to Infobae, cost overruns on road works reach an average of 15% in 2026, rising to 30% in renovation contracts. These data reflect a structural problem in how public contract prices are set.
The construction sector has seen an increase in material and energy costs, which has led to an unrecoverable deficit of 327 million euros in works tendered between December 2025 and February 2026.
However, the data do not reflect the full impact on small and mid-sized companies, which may face additional difficulties because of their lower capacity to absorb cost overruns or renegotiate contracts.
Risks and limits
Rising costs and the lack of price revision in public contracts pose significant risks for construction companies. Companies must carefully evaluate each project before submitting a bid.
In some cases, taking part in public tenders may not pay off, especially if margins are too thin or if there is uncertainty about future costs.
At the organizational level, companies must be able to adapt quickly to changes in the market and regulations. This requires efficient management and solid strategic planning.
What a company can do now
Construction companies can take concrete steps to face these challenges. First, they should carry out a detailed feasibility analysis for each project, considering all potential costs.
It is important to set clear criteria for deciding which tenders to enter, prioritizing those with wider margins or with price revision mechanisms.
As a next step, companies can explore taking part in free pilots with construction management tools, such as Bloqbase, to optimize their processes and improve decision-making.
Sources
Infobae: https://www.infobae.com/espana/2026/07/23/la-construccion-rechaza-707-millones-en-contratos-publicos-1130-licitaciones-se-quedan-desiertas-hasta-junio-porque-los-precios-no-cubren-costes/