Spain is witnessing a sharp rise in unawarded public works tenders as construction companies pull back from bidding amid escalating costs and uncertainty linked to the Middle East conflict. According to the country’s main construction lobby CNC, 1,130 public tenders worth over €707 million remained without successful bids during the first half of 2026, delaying the start of key infrastructure and housing projects.
The monthly rate of unawarded tenders has climbed 16% above the levels seen after Russia’s invasion of Ukraine. CNC attributed the trend to inflation-driven cost pressures and the absence of mechanisms to adjust contract prices. More than 82% of the affected contracts were valued below €500,000 and were primarily issued by regional and local governments, although larger infrastructure and social housing projects have also been impacted.
CNC President Pedro Fernandez Alen warned that builders are increasingly avoiding public contracts because they cannot accurately predict costs for projects spanning several years. The lobby cautioned that Spain’s efforts to expand housing supply and rebuild regions such as Valencia after the 2024 flash floods could face significant setbacks unless contractors receive stronger protection against cost volatility.
Pic Courtesy: google/ images are subject to copyright
