Spain faces surge in deserted and non-competitive public contracts

Spain is experiencing a significant rise in deserted public works contracts and a lack of competition in government tenders. Between January and August 2026, the volume of contracts awarded to a single bidder reached 976 million euros, a fourfold increase compared to the same period the previous year.

Industry experts attribute this trend to high inflation and the rising cost of construction materials, exacerbated by geopolitical tensions and conflict in Iran. The National Construction Confederation (CNC) reports that nearly as many public works contracts remained deserted in the first half of 2026 as in all of 2025, with an average of 188 projects per month failing to find a contractor. Catalonia has been identified as one of the most affected regions, with notable deserted contracts at the Port of Barcelona and in the municipalities of Sabadell and Manresa.

Construction companies are calling for government intervention to recognize increased material costs in existing contracts, similar to measures taken during the 2022 invasion of Ukraine. While state-level entities like Aena and Adif include cost revisions, companies are demanding a law that compels autonomous communities and local city councils to implement similar protections to mitigate financial risks.