The LCSP framework and contract types

The act's subjective scope is broad. It covers public administrations in the strict sense (central government, autonomous communities, local authorities, autonomous bodies), but also so-called contracting authorities that are not public administrations (public foundations, many publicly owned companies) and the remaining public sector entities. The applicable regime is not identical across the three levels: the closer an entity sits to the administrative core, the stricter the procedure.

For construction operators, the practical consequence is direct: a works contract with a municipality is not governed by exactly the same rules as a contract with a state-owned company, even though both derive from the same act. The first reflex when facing any tender is to identify what type of entity is procuring and which regime applies.

The LCSP classifies contracts by their object. Three types matter most to the construction sector.

The distinction is not a formality: each type carries its own rules on qualification, guarantees, duration and execution. Architecture and engineering services (design, project supervision) are tendered as services contracts, with specific evaluation rules that weight technical quality. Physical execution is always a works contract, and the concession adds the transfer of operational risk to the contractor.

The contract's value determines the rigour of the procedure. At the upper end sit contracts sujetos a regulación armonizada (SARA, subject to harmonised regulation): those that reach or exceed the European thresholds and fall under the reinforced guarantees of the directives, including publication in the Official Journal of the European Union. Since 1 January 2026, the SARA threshold for works and concessions is 5,404,000 euros. At the lower end sit contratos menores (minor contracts), which can be awarded directly with minimal publicity requirements: below 40,000 euros for works and 15,000 euros for services and supplies.

Between the two extremes lies most of the public works market: non-SARA contracts awarded through the act's ordinary procedures. The detail of the thresholds, their effects and the limits of the minor contract are developed in the article on SARA thresholds and minor contracts.

Each tender is governed by two documents the bidder must master before preparing anything: the pliego de cláusulas administrativas particulares (PCAP, the particular administrative clauses), which sets the legal and economic conditions (required qualification, award criteria, guarantees, penalties), and the pliego de prescripciones técnicas (PPT, the technical specifications), which defines what is being procured and to what quality. The tender documents are the law of the contract: what is not in them cannot be demanded, and what is in them binds both parties. Their critical reading is the first task of any serious bid, as detailed in the article on the PCAP and PPT tender documents.

The LCSP distinguishes three economic figures that are often confused. The presupuesto base de licitación (base tender budget) is the maximum spending limit, VAT included, the administration may commit. The valor estimado (estimated value) is the figure that determines the applicable regime (SARA or not, available procedure, special review): it includes planned extensions and modifications and is calculated without VAT. The price is the consideration finally agreed with the successful bidder. Handling the three figures correctly is essential to know which regime the bid faces, and their construction is analysed in the article on the base tender budget.