Public Procurement · Sub-area
SMEs in Public Procurement
Spain's public procurement market moves more than €90 billion a year. Law 9/2017 LCSP introduced specific mechanisms so small and medium-sized companies can access it on real terms: lots, faster procedures, less initial documentation, and the right to be paid within 30 days. Knowing how to use them makes the difference.
Law 9/2017 LCSP
The four mechanisms the law reserves for SMEs
The 2017 reform was not just a formal change: it introduced concrete tools to lower the barriers to entering the public market. These are the four most important ones.
Mandatory splitting into lots
Art. 99 LCSPThe law requires the contracting authority to split contracts into lots whenever possible, and requires it to expressly justify when it doesn't. A contract split into lots lets your company bid only for the lot that matches your real capacity, without competing for the whole against large companies.
Simplified open procedure
Art. 159 LCSPFor services and supplies contracts up to €100,000 and works up to €2,000,000, there is a faster procedure: less documentation, shorter deadlines (20 days) and simpler processing. Below €35,000 for services (and €80,000 for works), the summary simplified procedure cuts the deadline to just 10 working days.
Declaration of responsibility (DEUC)
Art. 140 LCSPTo submit your bid you don't need to provide all the supporting documentation from the outset. A declaration of responsibility (the European Single Procurement Document, DEUC) stating that you meet the requirements is enough. Only the winning bidder has to provide the original documents at the end.
External means of solvency
Art. 75 LCSPIf your company doesn't meet the solvency levels required in the tender specifications on its own, you can rely on the resources of another company: a group partner, a regular collaborator, or a third party you reach a formal agreement with. That company "lends" its solvency so you can take part in the tender.
Practical guide
Which contracts can your company bid for?
The procedure that applies to each contract depends on its value. Knowing these thresholds is the first step to knowing which tenders are worth spending resources on.
| Contract value | Procedure | Bid deadline | Advantage for SMEs |
|---|---|---|---|
| Up to €35,000 services / €80,000 works | Summary simplified open procedure (art. 159.6) | 10 working days | Minimal bureaucracy. Ideal for a first tender. |
| Up to €100,000 services / €2,000,000 works | Simplified open procedure (art. 159.1) | 20 working days | Fast. Accepts the DEUC. Lower documentary burden. |
| No limit | Ordinary open procedure (art. 156) | 30-35 days | Access to higher-value contracts. |
| Contract split into lots | Whichever procedure applies to the lot | Depends on the lot | SMEs only compete for the lot within their reach. |
* The thresholds for services and supplies apply to central government (AGE) contracts. Regions and municipalities may set different thresholds under their own procurement rules.
Once and for good
ROLECE: submit your documentation just once
One of the biggest frictions for SMEs is having to submit the same deeds, powers of attorney and certificates in every tender. ROLECE solves that problem at the root: register once and prove your company with a single certificate in any State procedure.
How to register: 4 steps
Gather the documentation
Deed of incorporation, the representative's powers of attorney, the company's and representative's tax ID, annual accounts for the last three financial years and, where applicable, civil liability insurance.
Access the electronic portal
Log into the State Advisory Board for Public Procurement's electronic portal with a digital certificate or electronic ID. The application is entirely online.
Complete the application
Indicate the activity categories and, where applicable, also request business classification. The Board verifies the data and may request additional documentation.
Obtain the ROLECE certificate
Usual timeline: 1-2 months. The certificate is valid indefinitely as long as the company's details don't change. If they change, the registration must be updated.
Why is it worth registering?
- No need to repeat supporting documentation in every State tender
- A single document evidences legal personality, capacity to act and solvency
- Drastically reduces the risk of exclusion due to incomplete documentation
- Recognised by every contracting authority in the central government
- Many regions and municipalities also accept it
- Updating it after corporate changes is simple and done entirely online
Law 3/2004 · Art. 198 LCSP
The authorities have 30 days to pay. These are your rights.
Late payment by the authorities particularly affects SMEs, which have less financial muscle to absorb delays. The law grants you automatic rights that don't need a prior claim to be triggered.
Maximum payment deadline
30 calendar days from acceptance or verification of the service provided
Art. 198.4 LCSP + Law 3/2004Automatic late-payment interest
ECB rate + 8 percentage points. It accrues on its own: you don't need to request it
Art. 7 Law 3/2004Compensation for recovery costs
A fixed €40 for each unpaid invoice, regardless of the amount
Art. 8 Law 3/2004Contract termination
If the delay exceeds 4 months, you can terminate the contract and claim damages
Art. 198.6 LCSPPractical notice: Interest accrues automatically, but you have to claim it to collect it. If you don't include it in an express claim, the authorities won't pay it on their own initiative even though they owe it. Consult a lawyer before your right lapses (general limitation period: 4 years from when it accrued).
Related area
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Analysis of the tender specifications, the administrative envelope, technical and financial bid, solvency, and submission on platforms. The 7 most frequent mistakes that cause exclusion.
Related area
Excluded, or the award isn't correct?
The special TACRC appeal has a 15-working-day deadline, is free of charge, and automatically suspends the procedure until it is resolved.
First tender or ongoing issue
Is this your first tender, or do you have a problem with a public contract?
Whether you want to enter the public market for the first time or have been bidding for a while and have an open dispute, we'll tell you honestly what you can do and whether we can help.
Free ConsultationFrequently asked questions about SMEs and public procurement
Can an SME win public contracts without business classification?
Yes. Business classification is only mandatory for works contracts above €500,000 and when expressly required in the tender specifications for services contracts. For everything else, solvency is evidenced with references to similar work (private clients count too) or with turnover from recent years. Additionally, art. 75 LCSP allows you to "borrow" the solvency of another group company or a third party if your company doesn't reach the tender's thresholds on its own.
What is the advantage of registering with ROLECE?
ROLECE (the Official Register of Bidders and Classified Companies) centralises all your company's documentation in a single public register. Once registered, you don't need to submit deeds, powers of attorney, tax IDs or annual accounts in every tender: the ROLECE certificate is enough. It reduces the administrative burden, eliminates the risk of exclusion due to missing documents, and is recognised by every contracting authority in the State. Registration is free and entirely online.
What is the simplified open procedure and when does it apply?
It's a faster version of the ordinary procedure. It applies to services and supplies contracts up to €100,000 and works up to €2,000,000. The bid submission deadline is 20 working days (compared with 30-35 for the ordinary procedure). Below €35,000 for services (and €80,000 for works) there is the summary simplified procedure (just 10 days, automatic criteria only), ideal for companies entering the public market for the first time with the least administrative effort possible.
Can an SME evidence solvency without previous experience in public contracts?
Yes. Contracts executed for private clients count as valid technical references just like public ones. If your company still doesn't reach the tender's thresholds, art. 75 LCSP lets you rely on the solvency of a partner company, a group company, or a third party. That company signs a formal commitment to make its resources available to you during execution. If the technical solvency comes from those external means, both companies are jointly and severally liable for the contract's execution.
What happens if the authorities don't pay us within 30 days?
Late-payment interest accrues on its own from day 31, with no need to request it: ECB rate + 8 percentage points (Law 3/2004). You're also entitled to a fixed €40 for each unpaid invoice as compensation for recovery costs. If the authority is more than 4 months late, art. 198.6 LCSP lets you terminate the contract on that ground and also claim damages. In any case, you can claim through the administrative route and, if necessary, through judicial review.