Reform proposals for price as the sole criterion for contract awards reopens public procurement debate in Spain
Published on 24th October 2025
The Ministry of Transport has mooted eliminating subjective criteria and giving more importance to price in contracts
Public procurement in Spain is at a new turning point. The debate between price and quality is once again taking centre stage in the legal and political arena, reopening a discussion that seemed to have been resolved with the Public Sector Contracts Law (LCSP). This law, passed with the aim of modernising public procurement, opted for the best value for money, with qualitative, social and environmental criteria gaining ground over economic criteria.
In the current landscape marked by the need to strengthen transparency and prevent corruption, proposals are emerging that advocate for quantifiable and automatic contracting criteria over value judgements, restoring the prominence of price that the LCSP had nuanced. "Value judgements" are qualitative criteria evaluated by specialists (for example, methodology and service organisation), while ‘automatic criteria’ are scored using formulas (for example, price and deadlines) with minimal discretion.
Awarding contracts under LCSP
The LCSP is based on the premise that price should not be the only criterion for awarding contracts. Articles 1.3 and 145 of the legislation are explicit in this regard: contracting authorities must establish criteria that allow them to obtain quality works, supplies and services, adjusted to real needs and not just to the budget. In other words, price ceased to be, at least on paper, the central element of the award.
However, applying these principles in practice has proved complex. Assessing quality requires technical and professional work that demands training, experience and judgement. Comparing prices, on the other hand, is immediate, objective and automatable. This difference has kept alive the debate about the extent to which the pursuit of objectivity can end up sacrificing quality.
The proposal to reform the procurement specifications
In this context, the Ministry of Transport and Sustainable Mobility of Spain has proposed a possible reform of the tender specifications that could modify the award criteria. This proposal seeks to revise the specifications to eliminate subjective criteria and give price a 100% weighting in certain contracts.
The ministry's approach is to eliminate value judgements in the awarding of works and services contracts, especially in the road and rail sectors. The aim is to move towards automatic and objective procedures in which price is the only determining factor, reducing discretion and seeking to avoid irregularities in the tendering process.
Sector reaction to the proposal
Although the aim of the reform is to strengthen the procurement system, the sector is concerned that this proposed trend could lead to pure auctions, in which price is the only determining factor.
In view of this scenario, the National Construction Confederation (CNC) has reacted by emphasising that competitive bidding is the most effective tool for ensuring transparency and free competition, as it evaluates the bid as a whole and the process is characterised by the obligation to justify every aspect of the bid and to leave a documentary trail.
On the contrary, according to the CNC, in an auction, it is sufficient to offer the lowest price for the award, which could jeopardise the efficiency and quality of infrastructure and promote poor service and so-called "reckless low bids", which can lead to higher costs in the long term. In addition, the organisation highlights that competitive tendering promotes real competition and technical excellence, as companies compete in innovation and improve the quality of infrastructure, all of which favours better value for money.
On the other hand, there is great concern, especially in the area of road conservation and maintenance, where contracts depend on the assessment of various factors such as price, experience and innovation. The sector fears that the model proposed by the ministry could negatively affect road safety and the quality of public road infrastructure. Innovations such as "forgiving roads", the use of sustainable materials, improvements in drainage, road markings and containment systems could disappear if the only incentive is immediate savings. These innovations are often incorporated as award criteria (innovation, method and performance) or as performance conditions (for example, environmentally certified materials), which are areas that could lose importance if price were the only criterion.
Directive 2014/24/EU on public procurement already urges Member States to combine competition with transparency and to avoid simplifications that are detrimental to the general interest. Opting for auctions could even contradict the spirit of the LCSP, whose objective is precisely to encourage competition through value propositions.
European Parliament resolution on public procurement
The European Parliament Resolution of 9 September 2025 (2024/2103(INI)) warns that price as the sole criterion degrades quality and increases the risk of social dumping and undeclared work. It urges that procurement be geared towards the best value for money and that social, environmental and labour criteria be integrated (article 18.2 of the directive).
This approach is in line with the recommendations of advisory bodies and contract appeal tribunals in Spain, which promote the technical justification of criteria and the strengthening of the documentary trail.
Osborne Clarke Comment
The ministry's reform proposal has reopened a debate that seemed to have been settled, but which remains fundamental to the modernisation of public procurement. The sectors affected agree that the aim should not be to automate the decision but to professionalise it, providing those who evaluate bids with the means and training to do so and strengthening controls without relinquishing technical judgement.
At a time when Spain is facing the implementation of European funds and the transition to more sustainable infrastructure, the way in which public works are contracted is no minor issue. The experience of the technicians and contractors operating in the public procurement system is a valuable resource that cannot be replaced by a formula. The challenge is to build a balanced model.
If you would like to know more about the issue discussed in this note or other issues related to public procurement, please do not hesitate to contact one of our experts listed below or your usual contact at Osborne Clarke.
