La Laguna Scraps Social Housing Tender After Failing to Attract Bids
The municipal housing agency in La Laguna is shifting to a negotiated bidding process for a 29-home social housing project after two consecutive tenders failed to attract interest from construction firms.
Efforts to build subsidized housing in the Canary Islands have hit another snag in La Laguna. The tender to construct 29 social and affordable rental homes in the Gracia neighborhood has been cancelled because no companies submitted bids. This follows a similar failure in January, when a tender for 50 homes in Tejina—valued at over seven million euros—also attracted no interest.
These repeated cancellations highlight a wider problem in the construction industry. Rising costs for raw materials, a shortage of skilled workers, and thin profit margins on social housing projects are making it difficult for the government to find contractors willing to work within current budgets. For the Tejina project, the municipal company is currently reviewing costs to decide whether to re-tender the work or award the contract directly.
For the Gracia project, which has a budget of over 5.3 million euros funded by local and regional authorities, Muvisa has decided to bypass a new open tender. Emilio Fariña, head of the agency, has confirmed they will use a "negotiated procedure." This legal shortcut allows the government to contact construction firms directly to award the contract, helping to avoid further administrative delays.
The site, located at the corner of Calle Pico Cho Canino and Pasaje Miel de Palma, is a vital part of the city’s plan to increase public housing. The City Council, which is providing both the land and more than half of the funding, remains committed to completing the project within three years. Muvisa plans to invite construction companies to bid shortly, aiming to get the project back on track as quickly as possible.