Market overview
The construction sector is of strategic importance for many countries across the world. It delivers the buildings and infrastructure needed by the rest of the economy and society.
The construction industry is of high importance to the EU economy. The sector provides 18 million direct jobs and contributes to about 9% of the EU’s GDP. It also creates new jobs, drives economic growth, and provides solutions for social, climate and energy challenges.[1]
According to Eurostat data, in 2020 the total turnover of the construction sector of the EU countries amounted to 1.7 trillion euros.
At the same period over three million companies operated in this sector. Italian data was not provided during the preparation of the review, but they probably, based on the figures of the past periods, amount to an additional 400 – 500 thousand, so approximately in 2020 there were about 3.5 million companies operating in the EU.
According to European Commission’s, Information System Nando (New Approach Notified and Designated Organisations) on 2022-09-15 there were 664 Technical Assessment and Notified Bodies across the EU. They all are working according to Regulation (EU) No 305/2011 – Construction products.
Construction companies, more or less, must deal with these Bodies. There is no doubt that these companies are required to submit various reports necessary for their activities to the supervisory authorities.
The problem even gets bigger when these companies go abroad. Member States have various provisions, including requirements, relating not only to safety of buildings, construction works but also to health, durability, energy economy, protection of the environment, social, economic and other important aspects in the public interest.
Bureaucracy may take lots of time to fulfill all requirements imposed by the host member state. Furthermore, it is expensive, because of high payable lawyers. And even if the company succeeds in finding the right lawyer, there is still a problem of finding local profesional construction managers, employees and so on.
Different administrative measures established at Member State level, concerning construction works, may have an impact on the requirements of construction products, and also limits the competition between construction companies of different member countries (for example, in order to carry out construction work in Lithuania, a Maltese company must meet the requirements of Lithuanian legislation).
Participants in the construction sector of the member countries are supervised differently, the procedure for issuing permits to engage in construction activities, and supervision of construction progress are different. Proper preparation of documentation often requires expensive and long-term legal assistance. Furthermore, there is lots of real paperwork to do.