Public Contract Types: Complete LCSP Guide
Did you know that incorrectly classifying a public contract can annul the entire bidding procedure?
The difference between a service contract and a concession is not just terminology: it defines the legal regime, the deadlines, the solvency required, and even the competent jurisdiction in case of conflict.
Public procurement is the engine that allows the administration to function, but its technical complexity often generates doubts. This guide explains the types of public contracts regulated in the Law 9/2017 on Public Sector Contracts (LCSP) with practical examples and the SARA thresholds updated for 2024-2025.
Types of Public Contracts According to their Object: The LCSP Classification
The Law establishes 8 main typologies. Knowing them is fundamental to know what rules apply in each tender.
| Contract Type | LCSP Article | Definition | Practical Examples | SARA Threshold (AGE)* |
|---|---|---|---|---|
| Works | Art. 13 | Execution of works (isolated or with project) or civil engineering works. Includes renovation, repair, or conservation. | Construction of a road, rehabilitation of a building, photovoltaic installation. | € 5,404,000 |
| Works Concession | Art. 14 | Works services where the consideration is the right to exploit the work (with or without payment), transferring the operational risk. | Toll motorway, construction of public parking with commercial exploitation. | € 5,404,000 |
| Service Concession | Art. 15 | Management of a public service where the businessman assumes the operational risk (charges fees to users or assumes the demand). | Comprehensive waste management, operation of a school canteen, urban transport. | € 5,404,000 |
| Supplies | Art. 16 | Acquisition, financial leasing (leasing), or rental of movable property or products. | Purchase of furniture, computer equipment, patrol vehicles, medical material. | € 216,000 |
| Services | Art. 17 | Performances of doing not related to works or supplies. The administration pays a fixed price. | Office cleaning, elevator maintenance, consultancy, training. | € 140,000 |
| Services of Annex IV LCSP | Art. 22.1 | Specific services (social, health, educational, or cultural) that, by their nature, have a simplified advertising and award regime. | School canteen services, vocational training, certain legal services, or social services to the community. | € 750,000 |
| Works in special sectors | DA 8ª | Works contracts awarded by entities operating in the water, energy, transport, and postal services sectors. | Construction of a water treatment plant, laying of high-voltage power lines, or railway infrastructure. | € 5,404,000 |
| Supplies and services in special sectors | DA 8ª | Acquisition of products or provision of services linked to the activity of entities operating in the water, energy, transport, and postal sectors. | Purchase of city buses, maintenance of gas networks, or postal management services. | € 432,000 |
*The SARA thresholds indicated are for the General State Administration (AGE). For other contracting authorities, see the following section.
Administrative vs. Private Contracts
Beyond the object, the law distinguishes by the legal regime:
- Administrative: Linked to the turn or traffic of the administration (the 5 in the previous table). They are governed by the LCSP and administrative law.
- Private: Contracts that the administration signs but whose effects and extinction are governed by private law (e.g., sale of real estate, insurance, financial services).
Mixed Contracts: How to Determine the Main Performance
Mixed contracts are those that contain services corresponding to different types of contracts. Their complexity lies in the fact that the services must be directly linked to each other and maintain a functional unit (Art. 18.1 LCSP).
How is the main performance determined?
- By the highest economic value: If the work costs €600,000 and the associated service €200,000, it is processed as a works contract.
- By the characteristic object: If the values are similar, the object that justifies the administrative need and defines the nature of the contract prevails.
- The nuance of concessions: If the mix includes a concession (of works or services) and another non-concessional service, the criterion varies. In accordance with article 18.1.b of the LCSP, if the estimated value of the non-concessional service exceeds the harmonized regulation thresholds (SARA), the contract will be governed by the rules of works, supplies, or services corresponding. Otherwise, the concession rules will apply.
Practical example:
Tender for "Supply and installation of air conditioning system".
- Supply of equipment: € 80,000.
- Installation and minor civil works: € 70,000.
Result: The main performance is the Supply (higher value). The solvency requirements and deadlines of a supply contract will apply.
Frequent Error:
Confusing Division into Lots with Undue Splitting
It is vital to distinguish two concepts that are often mixed up:
- Division into lots (The general rule): Article 99 of the LCSP requires dividing the contract into lots to encourage the participation of SMEs. Non-division is the exception and must be justified by the existence of a functional unit that makes the separation of services difficult for correct execution from a technical or economic point of view.
- Undue splitting (The illegality): What the law prohibits is slicing a contract artificially with the sole purpose of decreasing its amount to avoid the requirements of publicity or the corresponding award procedure. The goal is not only to "avoid thresholds", but to respect the principle of contract integrity and transparency.
Updated SARA Thresholds (2026-2027)
One of the most critical aspects is knowing if the contract is Subject to Harmonized Regulation (SARA). These thresholds are updated every two years by the European Commission.
The ones in force from January 1, 2026, reflect a slight decrease compared to the previous period and are as follows:
- Works and concessions (of works and services): € 5,404,000 (All contracting authorities).
- Supplies and services (AGE): € 140,000.
- Supplies and services (Rest of contracting authorities - CCAA/Local): € 216,000.
- Social services and other specifics (Annex IV): € 750,000 (This threshold remains unchanged).
Note for special sectors: In contracts for supplies and services awarded by entities operating in the water, energy, transport, and postal services sectors, the new threshold is set at € 432,000.
What Does It Mean to Be Subject to Harmonized Regulation (SARA)?
If your contract exceeds these figures, the European Directives 2014/24/EU come into play. This implies:
- European Advertising: Obligation to publish prior notice, tender, and award in the OJEU (Official Journal of the European Union).
- Extended Deadlines:
- Open procedure: minimum 35 days (compared to 15 for non-SARA contracts).*
- Restricted procedure: 30 days for requests + 30 days for offers.
- Greater Control: Access to the Special Appeal in Contracting Matters (before courts such as the TACRC).
- For companies: It means greater transparency, more time to prepare offers, and greater international competition.
*Specification: The general rule sets longer times to guarantee international competition, however, these deadlines can be reduced if certain legal conditions are met:
- By electronic means: Reduced by 5 days if electronic submission of offers is accepted (leaving the effective period at 30 days, the current standard).
- By Prior Notice: If a Prior Information Notice has been published (between 35 days and 12 months before), the deadline can be reduced to 15 days.
- By Urgency: In files declared urgent, the deadlines are significantly reduced, allowing a minimum of 15 days in the open procedure.
How to Calculate the Estimated Contract Value (ECV) Correctly
Careful! To know if you are SARA, don't just look at the base tender budget. The calculation of the ECV, according to article 101 LCSP, must sum:
ECV Formula = Net amount (without VAT) + Planned extensions + Planned modifications + Bonuses to bidders
Practical example:
Contract for cleaning municipal buildings:
- Annual amount: € 80,000 (without VAT)
- Initial duration: 2 years = € 160,000
- Extension provided in specifications: 2 years = € 160,000.
- Total ECV = € 320,000.
As € 320,000 exceeds the threshold of € 216,000 (for local entities), this contract is SARA and must go to the OJEU, even if the annual budget is modest.
Why Is It Vital to Classify the Contract Well?
For public entities, an error in classification is a frequent reason for annulment of the specifications and retroaction of actions.
Real cases of problems:
- Services vs. Concession: A city council tenders the management of a swimming pool as a service contract. However, the contractor charges entry to users and assumes the risk that no one goes (operational risk). This is a concession. Processing it as a service is illegal and voidable.
- Incorrect Solvency: For bidders, the type of contract defines the solvency required. If a company presents works classification for a contract that is actually for supply with installation, it can be excluded.
In Tendios, our AI algorithms analyze the real object of the contract by reading the specifications, helping to detect the correct typology beyond the title of the file.
Frequently Asked Questions
What is the difference between a service contract and a service concession?
The key is the operational risk. In a service contract, the administration pays a fixed price to the contractor and assumes the economic risk.
In a concession, although the contractor may receive a price from the administration in addition to operating income, they must always assume the operational risk (whether demand, supply, or both). This means they are not guaranteed the recovery of the investment if the service does not perform as expected in the market.
Can a contract change type during its execution?
No, the nature of the contract is immutable. The legal qualification is determined ab initio (from the origin) based on the main performance and must remain unchanged throughout the life of the file to safeguard the principles of concurrence and transparency.
Contractual modifications have strict limits: transforming the category of a contract through a modification (for example, converting a supply into a work or a service into a concession) would constitute a fraud of law and a covert direct award, by de facto awarding a contract different from the one originally tendered without due publicity.
Are minor contracts also classified by types?
Yes. Although they have a simplified processing, minor contracts (works < € 40,000, services/supplies < € 15,000) must respect their typology. You cannot process as a minor supply contract something that is a covert work.
What happens if I make a mistake in the type of contract when bidding?
If you submit incorrect solvency documentation or business classification (e.g., works classification for a service), you will be excluded for not meeting the aptitude requirements. Always verify the qualification in the tender notice or on the Contracting Platform.
Conclusion: Correct Classification Doesn't Have to Be Complex
Whether you are a public entity preparing a file or a company analyzing a tender, correctly identifying the type of contract is the first critical step.
For public entities:
Doubts about whether your contract is for services or a concession? Need to draft the PCAP without legal errors? Our AI assistant analyzes the object of the contract and helps you generate the specifications ensuring regulatory compliance.
For bidding companies:
Looking only for supply contracts in your sector? Our platform filters by contract type, CPV, and analyzes the specifications automatically so you don't waste time reading documents that do not fit your activity.
