In the Algarve region, David Pimentel (PS), vice-president of the Loulé City Council, reports a worsening trend, citing that up to April this year, a quarter of the 32 public tenders had no bidders, a notable increase compared to the minimal figures recorded in 2024 and 2023.
In Albufeira, also in the Faro district, José Carlos Rolo (PSD), the mayor, highlights not only several tenders with no applicants but also instances with just a single bidder. He notes a current tender valued at around nine million euros, which risks stalling if the sole participant withdraws.
The University of the Algarve experienced six deserted public tenders over the past two years. The university’s administration notes that five out of nine projects under the National Plan for Housing in Higher Education, funded by the Recovery and Resilience Plan (PRR), initially went without bids. Successful tendering was only achieved after reopening them with increased base prices.
In the Alentejo region, the president of Montemor-o-Novo Council in the Évora district, Olímpio Galvão (PS), explains that “companies complain about low tender prices, and even after revising and increasing them, they remain unattractive.” He adds that companies consistently report labor shortages and an inability to meet the high demand for construction work.
In Montemor-o-Novo, tenders for primary school and medical post rehabilitations often remain unfilled. The mayor also references the Convent of Saudação’s restoration project, initially valued at 6.1 million euros plus VAT, which drew interest from 17 companies but no proposals, with companies citing low valuations. This project was eventually split into two phases, with the first phase involving a 3.7 million euro tender funded by the PRR.
In the Setúbal district, Santiago do Cacém City Council had to increase base prices for tenders such as those for the Bairro dos Serrotes in Vila Nova de Santo André and the Ermidas-Sado preschool.
In the same district, Palmela City Council acknowledges that “the exponential increase in construction material prices” is a key factor in the lack of tender bids, even when tenders are reissued with higher base values.
The council further remarks that the widespread issue is apparent in many Local Housing Strategies across the country, and specifically in Palmela. These strategies, demanding extensive urban rehabilitation and new building projects with cost-controlled rents, funded by the PRR, are unlikely to be completed by the end of 2025.
In the Lisbon district, Odivelas municipality frequently faces desert tendering scenarios. Mayor Hugo Martins (PS) cites examples such as the refurbishment and expansion of the Honório Francisco Pavilion, Pontinha Health Unit, and Odivelas Police Division.
In Alcobaça, in the Leiria district, four of the five tenders issued by the City Council this year received no bids, with two concerning restorations at the Santa Maria Monastery. One required a base price increase, while the other saw only a single bid.
Leiria City Council finds it premature to conclude there are difficulties with contractor procurement, reporting only one bidless tender out of 24 in 2022. In 2023, no tenders were without proposals, with 27 issued. In 2024, three tenders out of 42 attracted no bids, prompting a higher base value for subsequent tenders.
Conversely, Mealhada in the Aveiro district had to reissue several tenders, including those for converting old laundries into the Luso Museum Center, improving access at Mealhada Secondary School and Avenida Comendador Messias Batista, converting former Santa Luzia fair stalls into pilgrim support spaces, and constructing three homes in Pedrulha, in the Casal Comba parish.
Similar scenarios affected the Local Housing Strategy projects in Oliveira do Bairro, tenders for rehabilitating the underground parking lot in Oiã, and new health centers in Arganil and São Pedro, as well as the refurbishment of the Bernardino Machado Secondary School in the Coimbra district’s Figueira da Foz.
In the Porto municipality to the North, roughly two dozen tenders, including the Basic Correios School’s refurbishment, remained without bids over the past three years.
The Porto City Council states, “The market has grown significantly, and companies struggle increasingly with labor shortages, leading to more selective bidding on tenders.”
In Braga, three public tenders were left without proposals last year, while in Viana do Castelo, the tender for a new municipal market had no bids on three occasions.
