Processing time limit for a contractual termination procedure subject to Law 9/2017, of 8 November, on Public Sector Contracts

The Supreme Court, in its judgment number 168/2026, of 17 February, resolves the question of “whether the processing of a contract termination procedure for a contract subject to Law 9/2017, of 8 November, on Public Sector Contracts, signed by an Autonomous Community that has not established a maximum duration for this type of procedure… is subject to the eight-month special processing period for this type of procedure, as indicated in Article 212.8 of the aforementioned contract law, or whether the three-month period regulated in Article 21 of Law 39/2015 of 1 October on the Common Administrative Procedure of Public Administrations applies.” This is because the contract termination procedure is considered an autonomous and independent procedure with respect to the performance of the contract and is subject to its own expiry period, which is set at the time the procedure is initiated, and should not be confused with the substantive regulation of the contract itself and its causes for termination.

Thus, the Supreme Court holds that i) the maximum duration of the procedure for terminating a contract entered into by an autonomous community that does not have a specific duration period set out in its regulations shall be three months, in accordance with the provisions of Article 21.3 of Law 39/2015, which applies on a supplementary basis, and (ii) the eight-month period established in Article 212.8 of Law 9/2017 applies to contracts entered into by state public sector entities, insofar as this provision is not in accordance with the constitutional order of competences and cannot be considered basic, in accordance with the provisions of Constitutional Court Ruling No. 68/2021 of 18 March.

Consequently, the expiry period for the processing of contract termination proceedings is:

• Within the scope of the autonomous communities:
  • As determined by their own regional regulations on procurement.
  • In the absence of specific regional regulations, the three-month period, by supplementary application of Article 21.3 of Law 39/2015.
• Within the scope of the State: the eight-month period.