27d1016v1 inception report

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Study on the Competitiveness of the EU construction sector and its enterprises Wi thin the Framework Contract of Sectoral Competitiveness Studies – ENTR!"!#$ %raft &nception Report Client' %irectorate()eneral Enterprise * &ndustry  Te am +eader' ,nud Eri k -ildin.(-amann/ %T& 0arhus/ Copenha.en/ Rotterdam and 1russels/ 23 4cto5er 3!!6 (SCS-619 European Union) – Sector Competitiveness – Construction sector 

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Study on theCompetitiveness of the EUconstruction sector and itsenterprises

Within the Framework Contract ofSectoral Competitiveness Studies –ENTR!"!#$

%raft &nception Report

Client' %irectorate()eneral Enterprise * &ndustry

 

Team +eader' ,nud Erik -ildin.(-amann/ %T&

0arhus/ Copenha.en/ Rotterdam and 1russels/ 23 4cto5er 3!!6

(SCS-619 European Union) – Sector Competitiveness – Construction sector 

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(SCS-619 European Union) – Sector Competitiveness – Construction sector 

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Ta5le of contents

1 Introduction 1

272 1rief sector overview and conte8t 2273 Work carried out durin. &nception phase 9Task !: $

2 Analytical framework and data definition 7

372 Statistical definition of the construction sector  ;373 The elements of the analytical framework and how it will 5e applied 22

37372 The different elements of the analytical framework  2237373 The analytical framework in relation to the five main tasks 2<3737< The analytical framework applied to the three different su5sectors2$

37< Competitiveness issues in the construction sector  2"

3 Methodology and workplan 19

<72 &ntroduction 26<73 Task 2' +iterature review 32<7< Task 3' Collection and presentation of data 36

<7<72 &nputs to other tasks <$<7<73 %elivera5les <$<7<7< %etailed time plan for task 3 <#<7<7$ 0llocation of resources in task 3 <#

<7$ Task <' Competitive position and .lo5al markets <"<7$72 0ctivities <"<7$73 &nputs to other tasks $!<7$7< %elivera5les $2<7$7$ Time plan in task < $2<7$7# 0llocation of resources in task < $3

<7# Task $' Re.ulatory and framework conditions $3<7#72 0ctivities $<<7#73 +inks to other tasks $"<7#7< %elivera5les $"<7#7$ Time plan for task $ $"<7#7# 0llocation of resources in task $ $=

<7" Task #' Strate.ic outlook  $=<7"72 0ctivities $=<7"73 %elivera5les $6<7"7< Time plan for task # #!<7"7$ 0llocation of resources #2

<7= 4verall delivera5les #2

4 Planning of activitie and rik mitigation !3

(SCS-619 European Union) – Sector Competitiveness – Construction sector 

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$72 Timeta5le of activities and milestones #<$7272 Schedule of meetin.s #$

$73 Risk >iti.ation##

! "iterature and takeholder lit !7

Anne# 1$ Irih "iterature review completion %%

Anne# 2$ &ata availa'ility (3

Anne# 3$ Minute of )ick off meeting93

*ompetitivene of the +uropean *ontruction ector 93

Commission?s comments on the proposal 6<4verall comments 6<Specific comments on proposal 6#

Contractual matters 6"@roAect implementation 6"

Role and involvement of stakeholders 6"&nvolvement of other %)s 6"%efinition of the sector and data collection 6"&nception report6=&nvolvement of stakeholders and e8perts 6=SC >eetin.s 9Now >onitorin. and 0dvisory .roup meetin.: 6=

Risks and risk miti.ation strate.y 6;Communication and mana.ement 6; Ne8t steps 6;

4verview of e8pected input from the European Commission 6;0.reed Consortium 0ctions'66

(SCS-619 European Union) – Sector Competitiveness – Construction sector 

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2 &ntroduction

Referrin. to the reBuest for services/ dated <! Septem5er 3!!6/ in the conte8t of theframework contract on Sector Competitiveness Studies 9ENTR!"!#$: si.ned 5etweenour consortium/ lead 5y EC4RS N+/ and %) ENTER@R&SE/ %T& to.ether with its partners EC4RS N+ and &%E0 Consult is pleased to su5mit the inception report for theStudy on the competitiveness of the construction sector and its enterprises.

The &nception report is the result of an initial inception phase and will 5e discussed at thecomin. monitorin. and advisory .roup meetin.7

272 1rief sector overview and conte8t

 European Construction activity

The construction sector is strate.ically important for Europe7 With 2"7< million peopledirectly employed in the sector/ it is EuropeDs lar.est industrial employer accountin. for=7" of total employment and <! of industrial employment in the EU(3= 93!!;:7

05out 2/<!# 5illion was invested in construction in 3!!;/ representin. 2!7$ of the)%@ and $673 of the )ross Fi8ed Capital Formation of the EU(3= in 3!!;7 )ermany/Spain/ )reat 1ritain/ France and &taly Aointly represent more than =! of the total EU(3=construction activities in 3!!;/ and these five countries Aointly represent two thirds of thetotal employment in construction in the EU(3= as well as two thirds of the 376= millionenterprises in the EU(3=7 6# or 37; million of these enterprises employ fewer than 3!workers27

The share of total construction activity in Europe 93!!;: for four of the key marketsectors is shown in Fi.ure 2 72 5elow'

3i,ure 1.1 Construction activit in Europe (7&&2) : mar;et sectors

Market sector Share of activities Share in billion €

8aintenance an rea:i0itation 72< %6$

Civi0 en,ineerin, 71< 7#"

/on-resientia0 %1< "&$

/e+ =ouse:ui0in, 7&< 761

ota0 construction activities 1&&< 1%&$

Source' F&EC ,ey fi.ures 3!!;

1  3>EC? @e 3i,ures 7&&2

1

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 Professional services - Architects

Europe3 has appro8imately $;</!!! architects of which 3# are 5ased in &taly and 3!in )ermany7 There are an estimated total of 2<!/!!! practices in Europe 9<3 countries:7

1ased on a survey<

 of 2= European countries the total estimated value of the architecturalmarket for the <3 European countries is 33 5illion7 Two countries( )ermany and the U,( Aointly account for more than <! of the total market7

 Professional services – Engineers

0ccordin. to a 3!!; &ndustry review of the European en.ineerin. consultancy sector $ theU, leads the en.ineerin. market followed 5y France and )ermany7 Gointly/ these threemarkets totalled more than 2<3 5illion in 3!!#7 0ccordin. to industry sources 9EFC0:/there are estimated to 5e appro8imately <7# million en.ineers in Europe/ of whom around2 million are estimated to 5e active in the en.ineerin. and technical consultin. sector7Furthermore/ accordin. to the &N) review from 3!!; the en.ineerin. consultancy sectoris active on the e8port market and it is estimated that on avera.e 3# of turnover is

achieved on e8port markets with the U, leadin. the rest of Europe at <# of turnover 5ein. e8ported7 Under professional services/ this study will also cover cost consultantsand 5uildin. controllin. 5odies7

Construction materials and products producers and suppliers

The construction industry accounts for 2! of total European )%@/ of which accordin.to CE@>C# Aust under a third i7e7 <7#/ is attri5uta5le to construction materials and 5uildin. products7 1ased on the total construction activity for EU(3= totallin. 2/<!#/ thematerials and products market represents more than $!! 5illion in 3!!;7 %irectemployment in this industry is estimated at 37# million people7

&n terms of construction materials we will seek to cover the main materials and productareas while the issue of raw materials will 5e covered as a framework condition undertask $7 -ere previous studies conducted under the framework contract/ includin. studiesof the metal/ ceramics and .lass sectors will 5e useful 5ack.round information for thisstudy and particularly the study of the 5uildin. materials and products industry7

EBually/ knowled.e institutions will 5e covered as part of the analysis of the frameworkconditions in task $7 Finally/ the study will cover wholesale of 5uildin. materials and products as these supply the 5uildin. trades directly whereas the retail market toconsumers for %o(&t(ourself purposes will not 5e covered7

The construction sector/ its different su5sectors and related sectors are depicted in the

Fi.ure 2 73 5elow 9the study will concentrate on the circled areas:'

7  The <3 countries from which the 0rchitects? Council of Europe draws its mem5ership comprisin. EU(3= plus Norway/SwitHerland/ FR4>/ Croatia and Turkey

<  >irHa * Nacey Research 93!!;: The 0rchitectural @rofession in Europe ( 0 Sector Study Commissioned 5y the0rchitects? Council of Europe

"  &n. 93!!;: The consultin. en.ineerin. sector in Europe$  CE@>C European Council for producers of materials for construction

(SCS-619 European Union) – Sector Competitiveness – Construction sector 7

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3i,ure 1.7 Overvie+ o4 te construction sector an ;e su:sectors

The construction sector is characterised 5y a comple8 value chain which includes 5asicmanufacturin./ supply and wholesale of 5uildin. materials and a ran.e of knowled.e(intensive services provided 5y private enterprises and pu5lic knowled.e or.anisations7Some of the lar.e actors in the different su5sectors currently operate across European 5orders and even in international markets 9for instance/ architects and en.ineerin.

companies:/ while other actors in the value chain mainly operate in national or localmarkets7 0s a result/ the different actors face very different challen.es with re.ard tocompetitiveness and innovation7 These differences will 5e reflected in the study 5yensurin. that data/ case studies and interviews cover key structural differences at 5othnational and su5sector level7

The 266= competitiveness a.enda for the construction sector descri5ed the function/ prospects and importance of the sector7 &t su5seBuently identified four o5Aectives forenhancin. the competitiveness the sector'27 To develop a coherent Buality policy for the sector 

&mprovin. Buality procedures and standards takin. into account environmental/

re.ulatory/ employment and entrepreneurial considerationsI37 To improve the re.ulatory environment0daptin. the re.ulatory framework in particular for pu5lic procurement/ unfaircompetition/ re.istration and Bualification systems/ health * safety and paymentdelays7

<7 To improve provision of education and trainin.To improve the education level/ the Bualifications of the workforce and the ima.e ofthe sector/ a key issue related to improvin. its attractiveness7

$7 To reorient and reinforce research and developmentTo stren.then efforts in Research and Technolo.ical %evelopment/ &nnovation andknowled.e deployment7

(SCS-619 European Union) – Sector Competitiveness – Construction sector %

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&n addition/ the ?6= competiveness a.enda indicated an overarchin. o5Aective offacilitatin. international e8pansion of all facets of the EU construction industry7 0n action plan was developed in cooperation with relevant stakeholders and workin. .roups with

wide participation from stakeholders at national/ European and industry level wereconstituted to further ela5orate and develop the recommended actions andimplementation mechanisms7

0ccordin. to the European Commission/ most stakeholders have confirmed that thecompetitiveness a.enda had a considera5le Jcatalytic effectK on the su5stantial pro.ressmade in areas like'• increased &CT(useI• sustaina5le constructionI• the ima.e of the sector 95oth from improved Buality of output and improved

conditions on construction sites:I• the development of tools for specific issues like detectin. a5normally low tendersI• common methods for life(cycle costin.7

The implementation of the ?6= competitiveness a.enda has involved the followin.challen.es'• it called for stron. level of commitment from different actors at European/ national

and industry levelI• it reBuired coordinated implementation 5etween these actorsI• &t called for an effective implementation system with tools and methods for steerin.

and monitorin. pro.ressI• %urin. the period it has 5een affected 5y si.nificant chan.es an developments in

society 9e.7 Enlar.ements of EU/ .lo5aliHation of markets/ increased focus on ener.yefficiency/ climate chan.e7

This study will analyse the results and the implementation of the ?6= competitivenessa.enda in order to 5uild the e8perience and learnin. points into the development anddraftin. of a new competitiveness a.enda and implementation plan and modalities whichaddresses the a5ove challen.es of the ?6= competitiveness a.enda and takes into accountfuture challen.es7

273 Work carried out durin. &nception phase 9Task !:

The point of departure for the study is the development of a sector(specific analyticalframework 9see section 3: and on the 5asis of this the collection and analysis ofBuantitative and Bualitative data7 -ence/ the inception phase has 5een used to carry out a 5rief pre(analysis in order to provide an initial .eneral sector description7

 Kick-off meeting and work plan

The study 5e.an with a kick(off meetin. with the Commission on the 2! th %ecem5er7 The,ick off meetin. was used to discuss the e8pectations of the Commission concernin. thestudy and its outcomes7 0t the kick(off meetin. we also discussed risks and riskmiti.ation and the initial risk miti.ation plans are presented in section #73 0lsocommunication plans and schedulin. of delivera5les and meetin.s was addressed to

ensure the successful completion of the study7 &nitial timin. of milestones anddelivera5les are presented in section #727 Furthermore/ we discussed the mappin. of therelevant stakeholders at national and European level with the Commission and discussed

(SCS-619 European Union) – Sector Competitiveness – Construction sector "

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how to 5est involve them in the study and which roles they could play in relation to thevarious tasksactivities of the study7 >inutes of the kick off meetin. and power point presentation was sent to the Commission on the 2=th %ecem5er7

%urin. the inception phase we have scoped the work on the sector and drawn up a moredetailed work plan in conAunction with the development of a more detailed picture ofliterature and data sources 9see section #:7 This includes an assessment of the level ofanalysis in the various activities 9e7.7 overall sector/ >em5er states/ and su5sectors:7

0t the kick off meetin./ the European Commission reaffirmed the focus of the study7 Theintention is to transpose the new competitiveness a.enda into a CommissionCommunication/ .uidin. the official policy over several years7

,ey issues to 5e covered'• What are the driversL• &dentify demands 9societal: and challen.es for the sector as well as opportunities for

.rowth 9such as eco(construction:I• &dentify o5Aectives and policy actions to inform new competitiveness a.enda for the

sectorI• &dentify modalities for how to implement the new competitiveness strate.y for the

construction sector7

The challen.es and proposed policy actions should 5e structured accordin. to the time perspective' Short term/ >edium term and +on. term7 The contractor will provide a draft

competitiveness a.enda for the sector 5ased on evidence and data7 The competitiveness0.enda will 5e finalised 5y the Commission in colla5oration with stakeholders andmem5er states7

 nception report 

0s a startin. point for the discussions at the monitorin. and advisory .roup meetin./ weare providin. the followin. in the inception report'• 0 structure of the relevant industry classification and value chainI• 0 clear view on the data availa5ility in terms of Buantitative and Bualitative dataI• 0 comprehensive plan for consultations with stakeholders and e8perts durin. the

study 9includin. a plan for interviews with stakeholders:I• 0 map of data flow and analysis throu.h the five tasks 9a conceptual representation of 

data flow and usa.e:I• 0 detailed plan of work and reportin. schedule within the team and with e8ternal

stakeholders7

0s part of the development of the inception report/ we have conducted a couple ofstakeholder interviews at national level to .et views on the key issues and themes7

(SCS-619 European Union) – Sector Competitiveness – Construction sector $

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3 0nalytical framework and data definition

&n this section we present the analytical framework and how it will 5e applied to theconstruction sector 9section 373:7 Furthermore/ we define the sector and su5sector instatistical terms 5oth usin. the N0CE Rev 3 and Rev 272/ 5ecause durin. the study we will 5e usin. data on the 5asis of 5oth N0CE codes7

 !ACE revisions and data availa"ilitySince 3!!;/ N0CE Rev7 3 has 5een introduced as the new nomenclature to structure 5usiness sectors/ su5stitutin. N0CE Rev7 2727 Statistical divisions of all countries and other data providers are now startin. to structure their 95usiness: data on the 5asis of this newnomenclature7

&n particular for the construction sector/ N0CE Rev7 3 is much 5etter performin. comparedto its predecessor/ in the sense that conceptually the sector is covered more accurately7Especially on the Mindirect? su5sectors of construction/ N0CE Rev73 distin.uishes severalentities on < or $ di.it level/ contri5utin. entirely to construction7 E8amples are entitieswithin the manufacturin. section 9e7.7 Mmanufacture of concrete products for construction purposes?: or services section 9Men.ineerin. activities and related technical consultancy?:7These e8amples are non(e8istent within N0CE Rev7 2727 For a definition of the constructionsector in 5oth classifications/ we refer to Error' Reference source not foundand Error'Reference source not found 5elow7

Unfortunately/ the switch from N0CE Rev7 2 has not yet 5een fully implemented in e8istin.data of Eurostat and some other maAor data sources7 The Eurostat policy is to use uniBuely N0CE Rev7 3 as from 3!227 >eanwhile/ Rev7 3 will 5e used where possi5le/ while Rev7 2will 5e used in other cases7 0t the time of writin./ most 5usiness data can only 5e found in N0CE Rev7 27 Furthermore/ only the time series of main statistical indicators will 5e 5ack(

casted in N0CE Rev7 37 This is why we are 5ound to use mostly the data availa5le within the N0CE Rev7 2 system7 >oreover/ for reasons of compara5ility/ we will try to stick to the N0CE Rev72 system for most of our data analysis7

&n some cases/ the data structured on the 5asis of the N0CE Rev7 3 nomenclature will havean added value outwei.hin. this issue of non(compara5ility7 This mi.ht 5e for reasons of su5(sector covera.e or 5ecause they are more up(to(date7 &n these cases/ the use of N0CERev7 3 throu.hout the study will 5e clearly marked and e8plicitly mentioned7 Currently/ theonly e8amples of .ood N0CE Rev73 data availa5ility in Eurostat/ are the Mindustry turnover?and Mindustry production? indices7 They cover EU2#/ EU3# and some other countriesmonthly/ up to Septem5er 3!!6 on a $(di.it level7 4ther data mi.ht 5e availa5le in the near 

future and will 5e implemented as seen relevant7

Stu on >nustria0 Po0ic an Services) #

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372 Statistical definition of the construction sector 

&n statistical terms/ the construction sector is usually defined 5y N0CE code $#7 The Terms

of Reference e8plicitly include construction(related professional services 9CR@S: such asarchitectural/ surveyin. and en.ineerin. practices 9i7e7 N0CE Rev 272 ,=$73 ": in theanalysis7 Finally/ the Terms of Reference include manufacture and supply of constructionmaterials/ product and components as well as cost consultants and 5uildin. control 5odies =7

The construction(related professional services constitute a su5set of the activities covered 5y N0CE code =$73 0rchitectural and en.ineerin. services7 For instance/ en.ineerin.services includes services related not only to 5uildin.s/ 5ut also manufacturin./ ener.yand environment;7 

With re.ard to manufacture and supply of construction materials/ product and components/these activities are included in several N0CE codes/ for instance N0CE code #27#<Wholesale of wood/ construction materials and sanitary eBuipment and N0CE code #27#$Wholesale of hardware/ plum5in. and heatin. eBuipment and supplies7 Unfortunately/ it isnot possi5le to determine the share of construction(related activities in these variousmanufacturin. activities/ and includin. the various N0CE codes may result in a .raveoverestimation of the siHe of the sector7 Furthermore/ it is Buestiona5le whether it will 5e possi5le to .ather compara5le data on an EU 5asis for all these N0CE codes in a meanin.fulway7 -owever/ we will endeavour with the help of national statistical sources and relevanttrade and industry associations to cover the main 5uildin. product and materials su5sectors7

6  /o+ classified under N0CE Rev 3 >=272I this .roup includes the provision of architectural services/ en.ineerin.services/ draftin. services/ 5uildin. inspection services and surveyin. and mappin. services and the like7

#  Some consideration will need to 5e .iven to an appropriate approach to the inclusion of 95uildin.: control 5odies from acompetitiveness perspective .iven their role in developin. and enforcin. re.ulations and takin. account of nationaldifferences in allocation 5etween pu5lic and private responsi5ility and systems7

2  &t is important to note that for statistical analyses/ most of the availa5le data a..re.ates en.ineerin. services alon.sidearchitectural services an tecnica0 testin, an ana0sis (a;er et a0. 7&&2? Stu on >nustria0 Po0ic an Services).

(SCS-619 European Union) – Sector Competitiveness – Construction sector 2

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a:0e 7.1 Construction sector /'CE coes revision 1.1

NACE Description

7& 8anu4acture o4 +oo proucts o4 +oo an cor;

203 Manufacture of builders' carpentr and !oiner

76 8anu4acture o4 oter non-meta00ic minera0 proucts

2"# Manufacture of bricks$ tiles and construction products

2"% Manufacture of ce&ent$ li&e and plaster

766 8anu4acture o4 artic0es o4 concrete? p0aster or cement

2"" Manufacture of concrete products for construction purposes

2""2 Manufacture of plaster products for construction purposes

267    Cutting, shaping and finishing of ornamental and building stone  

72 8anu4acture o4 4a:ricate meta0 proucts721 8anu4acture o4 structura0 meta0 proucts

2(2 Manufacture of structural &etal products for construction purposes

 

#% Construction

#% Site preparation

#%2 )uildin* of co&plete structures or parts$ civil en*ineerin*

#%3 )uildin* installation

#%# )uildin* co&pletion

#%% +entin* of construction or de&olishin* &aterial

$1 *o0esa0e trae an commission trae

$1$ *o0esa0e o4 non-a,ricu0tura0 intermeiate proucts

5153 Wholesale of wood, construction materials and sanitary equipment  

  515Wholesale of hardware, plumbing and heating equipment andsupplies

 

#" 'rcitectura0 an en,ineerin, activities

,#2 Architectural and en*ineerin* activities and related technical consultanc

 

(SCS-619 European Union) – Sector Competitiveness – Construction sector 9

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a:0e 7.7 Construction sector /'CE coes? revision 7

NACE Description

16 8anu4acture o4 +oo an proucts o4 +oo an cor;

  16.7 8anu4acture o4 proucts o4 +oo? cor;? stra+ an p0aitin, materia0s

  "-22 Manufacture of asse&bled par.uet floors

  "-23 Manufacture of other builders' carpentr and !oiner

 

77 8anu4acture o4 ru::er an p0astic proucts

  77.7 8anu4acture o4 p0astics proucts

  22!23 "anufacture of builders# ware of plastic  

 

23 8anu4acture o4 oter non-meta00ic minera0 proucts

  7%.1 8anu4acture o4 ,0ass an ,0ass proucts

  23!11 "anufacture of flat glass  7%.% 8anu4acture o4 c0a :ui0in, materia0s

  23-32Manufacture of bricks$ tiles and construction products$ in bakedcla

  7%.$ 8anu4acture o4 cement? 0ime an p0aster 

  23-% Manufacture of ce&ent

  23-%2 Manufacture of li&e and plaster  

  7%.6 8anu4acture o4 artic0es o4 concrete? cement an p0aster

23-" Manufacture of concrete products for construction purposes

  23-"2 Manufacture of plaster products for construction purposes

  23-"3 Manufacture of read/&ied concrete

  23-"# Manufacture of &ortars

  23!65 "anufacture of fibre cement  

  7%.# Cuttin,? sapin, an 4inisin, o4 stone

  23!7$ Cutting, shaping and finishing of stone

 

7$ 8anu4acture o4 4a:ricate meta0 proucts? e!cept maciner an eAuipment

  25.1 8anu4acture o4 structura0 meta0 proucts

  25!11 "anufacture of metal structures and parts of structures

  2%-2 Manufacture of doors and 1indo1s of &etal

  25.2 8anu4acture o4 tan;s? reservoirs an containers o4 meta0

  25.21 8anu4acture o4 centra0 eatin, raiators an :oi0ers

 

72 8anu4acture o4 maciner an eAuipment n.e.c.

  72.9 8anu4acture o4 oter specia0-purpose maciner

2%!&2 "anufacture of machinery for mining, quarrying andconstruction

#  Construction of buildin*s

"1.1 eve0opment o4 :ui0in, proBects

"1.7 Construction o4 resientia0 an non-resientia0 :ui0in,s

#2  Civil en*ineerin*

"7.1 Construction o4 roas an rai0+as

"7.7 Construction o4 uti0it proBects

"7.9 Construction o4 oter civi0 en,ineerin, proBects

#3 Specialised construction activities

(SCS-619 European Union) – Sector Competitiveness – Construction sector 1&

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NACE Description

"%.1 emo0ition an site preparation

"%.7 E0ectrica0? p0um:in, an oter construction insta00ation activities"%.% ui0in, comp0etion an 4inisin,

"%.9 Oter specia0ise construction activities

"6 *o0esa0e trae? e!cept o4 motor veic0es an motorcc0es

  "6.1 *o0esa0e on a 4ee or contract :asis

  6!13 'gents in(ol(ed in the sale of timber and building materials

  "6.6 *o0esa0e o4 oter maciner? eAuipment an supp0ies

  6!63Wholesale of mining, construction and ci(il engineeringmachinery 

  "6.# Oter specia0ise +o0esa0e

  6!73

Wholesale of wood, construction materials and sanitary

equipment 

  6!7Wholesale of hardware, plumbing and heating equipment andsupplies

 

#1 'rcitectura0 an en,ineerin, activities tecnica0 testin, an ana0sis

  #1.1 'rcitectura0 an en,ineerin, activities an re0ate tecnica0 consu0tanc

  #1.11 'rcitectura0 activities

  #1.17 En,ineerin, activities an re0ate tecnica0 consu0tanc

 

#7 Scienti4ic researc an eve0opment

  #7.1 Researc an e!perimenta0 eve0opment on natura0 sciences an en,ineerin,

  72!1&)ther research and e*perimental de(elopment on naturalsciences and engineering 

 

 Note' %escriptions in 5old indicate sector se.ments that are entirely part of the construction as defined in this

study7

373 The elements of the analytical framework and how it will 5e applied

37372 The different elements of the analytical framework 

The Fi.ure 3 7<on the ne8t pa.e provides the different elements of the analytical

framework to 5e applied in the study7

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3i,ure 7.% 'na0tica0 3rame+or;

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37373 The analytical framework in relation to the five main tasks

Fi.ure 372 on the previous pa.e illustrates the competitiveness analytical framework and

its different parts7 0ll factors and forces influencin. competitiveness are oriented towardsthe core of the framework representin. the competitive performance of the sector7 &tincludes four levels of assessment'

Competitive environment assessment  – this covers the competitor environment on thesupply(sideI the market developments on the demand side and e8o.enous factors ofimportance in the form of market conditions and competitive pressuresICompetitive "enchmarking assessment  – this covers the relative competitive position and performance of the EU compared to key competitors outside the EUI competitive positionwith the EU across mem5er states and se.ments as well as 5usiness models andstrate.iesI#alue $supply% chain assessment  – this covers structure/ processes and inputs in thesectors in BuestionI

 Pu"lic policy assessment  – this covers the re.ulatory * other framework conditions

0nalysin. the competitiveness of the sector across the four level of assessment includesthe analysis of key competitive performance outcomes/ coverin.'• Trade performanceI• &mport penetrationI• E8port intensityI• >arket sharesI

• SpecialisationI• @roduction .rowthI• Employment .rowthI• alue added .rowthI• @roductivityI• Ouality of .oodsI• @rofita5ilityI• &nvestment performanceI• Structural adAustmentI• Technolo.y and innovationI• @roduct and service developmentI• 1usiness and market environment attractivenessI• @roduction re(locationI• Forei.n %irect &nvestment 5ehaviour7

The analytical framework will 5e applied across the different tasks to ensure coherenceand optimal inter(linka.es 5etween the different tasks7 The different tasks will eachcontri5ute to the application of the analytical framework'• Task 2 ( the literature review and contact identification ( will identify literature that

e8amines the four levels of assessment and performance outcomes of the constructionsector and su5sectors7 &n addition/ task 2 will identify contact persons that can

ela5orate on the analysis of the different competitiveness elementsI• Task 3 – data collection and analysis – will identify relevant indicators and data to 5e

used in the analysis of the key competitive performance outcomes of the sector and

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su5sectors as well as the data that will e8amine the structure 9concentration/ role ofS>Es/ se.mentationspecialisation: and inputs 9la5our * skills/ intermediate.oodsservices/ raw materials * 5asic .oods: for the sectorI

• Task < – competitiveness analysis of the sector and su5sectors – will on the 5asis ofthe data and insi.hts from stakeholders provided conduct an analysis of the su5sectorsand the importance of the sector in relation to other sectorsI

• Task $ – analysis of the framework and re.ulatory conditions – will primarily focuson the pu5lic policy assessment and how this affect the competitiveness of the sectorand su5sectorsI

• Task # – Strate.ic outlook – will synthesise the findin.s of the completecompetitiveness analysis while e8aminin. the results and implementation of the 266=competitiveness a.enda 9pu5lic policy assessment: in order to draft a newcompetitiveness a.enda that will improve competitive performance of theconstruction sector and su5sectors in the lon. term7

3737< The analytical framework applied to the three different su5sectors

The study of the construction sector competitiveness covers primarily three su5sectorsand 5elow we provide an overview of which elements will 5e particularly relevant for thecompetiveness analysis of the different su5sectors and how we will approach the analysisof the different su5sectors7

Su"sector - E&ecution of Construction activities

This su5sector is primarily national in its focus7 &n other words/ trade/ imports and

e8ports hardly play a role7 There are very few companies that operate in several countries/however there is a se.ment emer.in. of primarily companies from New >em5er stateswhich set up 5usiness in 4ld >em5er states and 5id for construction work in thesecountries7

The key performance outcomes in the competitiveness analysis of this su5sector will 5elevel of specialisation/ production/ employment and value added .rowth/ productivity and profita5ility/ investment performance/ 5usiness and market environment attractiveness inthe short and lon.er term/ structural adAustment/ technolo.y and innovation 9R*%: and production re(location in the form of off(site construction7

&n terms of the value 9supply: chain/ this su5sector is particularly affected 5y the cost andBuality of skills and la5our/ access to finance and credits/ cost and Buality of 5uildin.materials and access to knowled.e and technolo.y7 Concernin. the structure/ S>Es oreven self(employed persons play a maAor role in the sector and there are few very lar.eenterprises and even fewer enterprises operatin. in several countries7 Specialisation isincreasin.ly takin. place and will 5e e8amined7 &n terms of processes/ there are severaldevelopments takin. place which will 5e e8amined includin. lean construction/ off(siteconstruction/ purchasin./ lo.istics and mana.ement/ etc7 &ntra( and inter industry linka.eswill 5e e8amined especially in relation to the other two su5sectors/ 5ut also within thedifferent trades of the construction activities7

(SCS-619 European Union) – Sector Competitiveness – Construction sector 1"

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Su"sector – Professional services

This su5sector covers architects and en.ineerin. services for the 5uildin. sector7Furthermore/ it also covers cost controllersBuantity surveyors and 5uildin. control

 5odies7

The architects and en.ineerin. services su5sector is characterised 5y some level of tradeactivities 9imports and e8ports: which varies from country to country in Europe7 Thetrade situation therefore will 5e e8amined 5oth e8tra EU and intra EU7 0s a conseBuence/the su5sector in Europe will also 5e 5enchmarked where possi5le a.ainst similarsu5sectors in other countries and re.ions of the world7

0lthou.h S>Es still play a maAor role in this su5sector/ there are a si.nificant num5er oflar.e players in Europe and more so in some countries such as the U, 9architects:70lthou.h an increased specialisation is emer.in. there are also e8amples of lar.ecompanies developin. multi(disciplinary or.anisations throu.h mer.ers and acBuisitions7

4therwise the competitiveness elements are the same as for the su5sector on e8ecution ofconstruction activities7

The 5uildin. control 5odies will primarily 5e analysed in terms of how they affect theconstruction market and sector7 The role of the 5uildin. control 5odies is to ensure thatthe 5uildin.s/ repair/ maintenance and refur5ishments produced 5y the construction sector as well as the construction processes live up to the standards set throu.h the variousre.ulations and standardisation 5odies7 This role and the type of or.anisations carryin.

out the control activities vary from mem5er state to mem5er state7 &t will 5e important toe8amine the linka.es 5etween these control 5odies across 5orders as well as with other parts of the construction sector and clients of the construction sector7

Similarly/ the study will e8amine the su5sector coverin. cost controllersBuantitysurveyors/ includin. how these influence the developments in the construction sector7

Su"sector – 'uilding materials producers and wholesalers

Similar to the architects and en.ineerin. services su5sector/ the 5uildin. materials sectoris characterised 5y trade activities 9imports and e8ports: and trade therefore will 5ee8amined 5oth e8tra EU and intra EU7 EBually/ certain 5uildin. materials se.ments in

Europe will 5e 5enchmarked where possi5le a.ainst similar se.ments in other countriesand re.ions of the world in order to assess the .lo5al competitive position of Europeansu5sectors7

Some level of re(location of production 9intra and e8tra EU: is takin. place for somese.ments of the 5uildin. materials su5sector 9e7.7 ceramics industry: and will 5ee8amined7

The key performance outcomes in the competitiveness analysis of this su5sector will 5esimilar to that for the main construction activities/ 5ut will also include market shares of

key actors within the most important se.ments/ relative competitive position compared to 5uildin. material suppliers in other countries7

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&n terms of the value 9supply: chain/ this su5sector is particularly affected 5y the cost oflo.istics and transport/ hu.e capital investments in especially production plants/ 5utincreasin.ly also in R*% and innovation7 0ccess to raw material is also crucial for

competitive operations7 Concernin. the structure/ several of the most important marketse.ments are partly dominated 5y lar.e enterprises and many of these enterprises operatein several countries7 E8amples can 5e found in insulation materials/ .lass and windows/steel and ceramics7 4ther se.ments are characterised 5y hi.h de.ree of specialisation andniche se.ments7 &n terms of processes/ there are several developments takin. place whichwill 5e e8amined includin. production processes/ off(site construction plants/ purchasin.// lo.istics and transport7 &ntra( and inter industry linka.es will 5e e8amined especially inrelation to the wholesale and distri5utive trades/ 5ut also within the different 5uildin.material se.ments7

37< Competitiveness issues in the construction sector 0 si.nificant num5er of issues are impactin. ne.atively or positively on thecompetitiveness of the construction sector and its different su5sectors7 &n the Error'Reference source not found 5elow/ the key issues have 5een listed and will 5e used as astartin. point for identifyin. the key issues at a national level/ relevant literaturee8aminin. the issues in depth and contacts for Bualitative interviews7

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(SCS-619 European Union) – Sector Competitiveness – Construction sector 16

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(SCS-619 European Union) – Sector Competi tiveness – Construction sector 1#

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(SCS-619 European Union) – Sector Competitiveness – Construction sector 12

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< >ethodolo.y and workplan

<72 &ntroduction

&n order to 5est meet the o5Aectives and provide a study that effectively contri5utes todialo.ue and de5ate on the competitiveness of the construction sector in Europe/ the proAect team will adopt an approach and methodolo.y that incorporates the key elements

from the Competitiveness analytical framework descri5ed in the previous section whileachievin. the optimal syner.ies 5etween the individual Tasks7 0ccordin.ly/ the individualTasks do not take place separately from each other7 Rather/ they are closely interlinked/with the outcome of each Task feedin. into and shapin. the other Tasks7 This approachand process is presented in a roadmap in Error' Reference source not found7

19

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3i,ure %." Roamap o4 stu? tas;s an activ ities

(SCS-619 European Union) – Sector Competitiveness – Construction sector 7&

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<73 Task 2' +iterature review

Task 2 concerns the literature review/ identification of stakeholders at national/ European

and international level/ initial interviews with stakeholders at national and Europeanlevel7 The approach taken is descri5ed in the proposal and 5elow we descri5e the mainactivities/ resource allocation linka.e to other tasks and detailed time plan for the task7

The activities of task 2 are'

 Pre-analysis

The pre analysis involves identifyin. the key themes to 5e covered and definin. how thedata sources/ information/ contact details of e8perts and resource persons and the analysisconducted will 5e used in the rest of the study7 This will 5e 5ased on close coordination

 5etween those conductin. the literature reviews and those conductin. the work in theother tasks7

The literature review will 5e 5ased on e8istin. literature dealin. with competitiveness of

the sector  9e7.7 competition/ trade/ market overview/ 5usiness models and strate.ies:/ EUand national regulatory and framework conditions 9e7.7 competition/ la5our market and&@R re.ulations: and analysis of the ())* competitiveness agenda 9response to thea.enda/ results and issues:7 The main sources will 5e statistical reports/ studies/ reports/strate.ies and academic articles on the state of the construction sector and its relevantsu5sectors7 This includes a systematic search and identification of sources of data/information/ and literature and the sources identified and used will 5e listed and .iven in

such a way that they later can 5e traced and utilised e7.7 when updatin. the analysis of thesector7

0part from literature and information pertainin. to the 6= competitiveness a.enda/ theliterature review will primarily focus on the most recent literature 9from 3!!; and onwards:7 There may 5e specific themes that are important and that have not 5een covered 5y reports or literature as recent as 3!!; or later7 &n such cases the contractor may chooseto include literature older than 3!!; in the analysis7 The reason for this focus on morerecent literature is that the current economic crisis has chan.ed the competitive conditionsin the sector dramatically and any literature reportin. on developments and prospects 5efore the crisis will 5e irrelevant or useless7

E8pected outputs of the pre(analysis'• 0 list of key themes to 5e covered in the literature reviewI• 0pplication of literature review and analysis in su5seBuent tasks7

 E+ literature review

The literature review at European level will comprise identification and analysis of keydocument relatin. to ?6= competitiveness a.enda7 &t will covers European Commissionreports on different su5Aects of relevance to the ?6= 0.enda plus minutes of workin..roups/ etc79the Tripartite/ Workin. and task )roups were in place till end 3!!<:7 We willalso cover interim reports from the various .roups which will 5e accessed via European

Commission archives7 ?6= 0.enda literature review will include analysis of'• >inutes of the < meetin.s of the Tripartite )roup 9Commission ( >em5er States (

&ndustry:I

(SCS-619 European Union) – Sector Competi tiveness – Construction sector 71

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• 0 report on the reBuirements in relation to Ouality in ConstructionI• 0 report on 1enchmarkin.I• Three reports on @u5lic @rocurement coverin. E>0Ts/ contract 5onds and 0+TsI

• Education/ Trainin. and &ma.e of the construction sector reports 9two reports:I• &CT in construction ( 2st phase 9si8 reports:I• &CT in construction ( 3nd phase 9one report:I• Sustaina5le construction 9five reports:I• &nnovation in construction 9one report:7

&n addition/ where availa5le we will identify and analyse national literature and literaturefrom sector or.anisations coverin. the ?6= a.enda7 -owever/ initial research su..ests thatwe will not identify much at national level7

The EU literature review 9see the initial list of literature at the end of the document: willfurthermore identify and descri5e the main re.ulatory and framework conditions/ whichhave an effect on the European construction sector7 &t will also hi.hli.ht the latestEuropean initiatives and descri5e the overall state and maAor themes of the Europeanconstruction sector7 The contractor will consult all the maAor European stakeholders inorder to identify'• the most relevant and up(to(date documents and informationI• initiatives that have influenced competitiveness at the European levelI• stakeholder representatives that can contri5ute to the comin. tasks7

E8pected outputs of the EU literature review'• +ist of main stakeholdersI• +ist of e8pertsrespondents with knowled.e European construction sector/ the 6=

competitiveness a.enda and key themesI• +ist of data sources and indicators for the EU construction sectorI• +ist of main literatureI• Ta5le showin. and 5riefly descri5in. the main EU re.ulation and le.islation affectin.

the EU construction sectorI• %escription of main themes descri5in. the competitiveness of the EU construction

sectorI• %escription of the main .rowth prospects for the EU construction sector and its

su5sectorsI• %escription of the main EU initiatives affectin. the European construction sectorI• %escription of the literature documentin. the implementation of the ?6=

competitiveness a.enda7

 nternational literature review

The international review will look at the development and competitiveness situation/statistical sources plus possi5le initiatives that have affected competitiveness in countriesoutside Europe7The international literature review will identify the main themes in re.ard to thecompetitiveness of the construction sector outside the EU/ which will indicate the

competition and possi5ilities in the Construction industry outside the EU7 This willinclude 5usiness models/ strate.ies/ market shares of key operators where relevant andrelative competitive position of European operators in professional services and 5uildin.

(SCS-619 European Union) – Sector Competitiveness – Construction sector 77

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materials sectors compared to operators and sectors in other compara5le countries7 Theliterature review will also show the effect of EU re.ulation on the construction industryoutside the EU7

E8pected out puts of the international literature review'• +ist of main stakeholders in key international marketsI• +ist of e8pertsrespondents with knowled.e on the competitive position of the

construction sector outside the EUI• +ist of data sources and indicators for comparison with EU and non(EU construction

sector incl7 4EC% sourcesI• +ist of main literatureI• %escription of main factors influencin. the competitiveness of the non(EU

construction sector and its impact on the European construction sectorI• %escription of the main .rowth prospects and maAor initiatives for the non(EU

construction sector7

 !ational literature reviews

The national literature reviews will descri5e the three most important themes for theconstruction sector in the individual >em5er States in the short and lon.er run and alsoidentify other important themes7 &t will identify the main re.ulation and frameworkconditions affectin. the national construction industry7 Finally it will e8amine the roleand effect of the M6= Competitiveness 0.enda at the national sector level7 The findin.sfrom the reports and interviews will 5e summarised in the template 9see 0nne8 3 forcompleted template on &reland:7

The 3= national literature reviews are especially important for case studies identificationin the different Tasks7 &t will provide the contractor with a solid startin. point andoverview of the national sector/ includin. a list of stakeholders to contact for interviews/consultation and participation at the validation workshop7

The national desk research will consist of an initial literature search and a search forstakeholders7

The first search will also identify statistical reports/ studies/ reports/ strate.ies andacademic articles on the state of the construction sector and its relevant su5sectors and the.eneral .rowth prospectsstate of the construction sector7 The first review of this literatureshould provide the contractor with a .ood indication of the maAor themesissues at thenational level7

The second step will identify relevant stakeholders with knowled.e of the keythemesissues and a .ood .eneral knowled.e of the construction sector and its su5sectors7The stakeholders should cover a wide ran.e of interest and knowled.e and shouldtherefore include representatives from #(" different or.anisations and institutions such as)overnments/ sector or.anisations/ universities and private sector7

For each national review a respondent will 5e identified/ who will 5e a5le toidentifyvalidate the relevant literature/ themesissues and other relevant stakeholders andcontacts7

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The information .athered in the first two steps will 5e inserted in the literature reviewtemplate 9see anne8 3:7 The ne8t activity will 5uild on this information throu.h one or

two interviews with the identified respondents in the desk research7

4n the 5asis of the initial literature assessment/ we will identify and contact the identifiedrespondents to o5tain their evaluation of the assessment and to Aointly identify potentialadditional literature to 5e reviewed andor sources of relevant literature to 5e investi.ated7

The focus of these consultations with a national e8pert will 5e to identify the three most

influential documents in each country coverin. the relevant themes/ the three ma,or

 factors influencing the competitiveness of the sector / one important sector andor

 government initiative which mi.ht influence the competitiveness of the constructionsector in the short to lon.er term7 The Aud.ements of the e8pert9s: will 5e validatedthrou.h the literature at hand/ further analysis and where necessary additional interviews9some of these additional interviews will take place in task <(# in connection with thecase studies/ su5sector analysis and SW4T analysis

The respondent will verify and re.ister the relevance of the individual e8perts andstakeholders for further interviews and workshop participation in the Tasks </ $ and #.

The information .athered and reviewed throu.h the consultation with the stakeholderswill 5e added to the template/ which will then 5e finalised and verified 5y the nationalrespondent7

E8pected outputs of the 3= national literature reviews'• +ist of main national stakeholders which can 5e contacted in the remainin. TasksI• +ist of e8pertsrespondents with knowled.e on the national construction sector and

su5sectorsI• +ist of national data sources and indicators showin. the competitiveness and .rowth

trends of the sectorI• Ta5le showin. the main o5stacles and ena5lers havin. an impact on the national

construction industry7 This should also include a ratin. of importance and a commentor e8ample on the impact of the o5stacle or ena5lerI

• Short analysis of the three most important factors affectin. the sector in the short and

lon.er termI• &dentification of the three most important national documents concernin. the

competitiveness of the national construction sector 9most recent and 5est possi5lecovera.e:I

• %escription of the maAor .rowth prospects and trendsI• %escription of one or two important national initiatives which can 5e used as possi5le

case studies7

Synthesis of findings

The results and findin.s from the literature reviews at national/ European and

international level will 5e synthesised 5y the contractor/ identifyin. all key referencesto.ether with the key factors for the sector and su5sectors in the individual mem5erstates/ across Europe as a whole and for selected markets outside EU where construction

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sectors are 5oomin. or in any other way competin. with or creatin. opportunities for parts of the European construction sector77 This synthesis of findin.s will 5e used to prepare a focused analysis of the competitive position of the construction sector/ its

su5sectors/ market se.ments 9task <: and the re.ulatory and framework conditionscoverin. the sector in Europe and the different mem5er states 9task $:7

E8pected outputs of the synthesis of findin.s'The synthesis will provide an overview and comparison of the situation and prospects ofthe construction sector and su5sectors across mem5er states and states outside EU7 &t willhi.hli.ht the commonalities and the differences in re.ulatory approaches to tacklin. thecurrent crisis and addressin. the lon. term competitiveness of the construction sector7

 inalisation

The finalisation of the review will inte.rate feed5ack from %) Enterprise and &ndustryand result in a synthesis of the literature/ hi.hli.htin. key findin.s relevant foresta5lishin. an in(depth understandin. inter alia of'• Construction sector 5usiness modelsI• Su5 sector competitiveness at European level and national differencesI• >ain sources of competitivenessI• Future challen.esI• trends in construction processes and servicesI• trends in technolo.ies and R*%I• re.ulatory environment 9situation and issues:I• 4ther framework conditions 9situation and issues:7

The inputs will direct inputs for the pro.ress report and will include specific contri5utionsto the su5seBuent tasks 93/ </ $ and #: to allow for further interviews with relevantstakeholders/ further analysis of potential case studies/ further analysis of key factors orre.ulatory conditions impactin. on competitiveness of the sector7

The production of the task 2 contri5ution to the pro.ress report will therefore also 5e 5ased on an iterative process in which additional data sources and literature identified insu5seBuent tasks will 5e inte.rated in the final pro.ress report7

 E&pected outputs/

The outcome of the literature review should 5e to provide a 5est(possi5le synthesis of theMstate of knowled.e? from theoretical/ analytical/ and empirical evidence re.ardin.developments within the industry coverin. the competitiveness of the sector/ re.ulatoryand framework conditions and the results and implementation of the M6= Competitiveness0.enda7 The outcome is at the same time the task 2 contri5ution to the pro.ress report7

(SCS-619 European Union) – Sector Competi tiveness – Construction sector 7$

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 nputs to other tasks

4ask Description

as; 7   • Sources o4 nationa0 economic an mar;et ata 4or te iniviua0 8em:er

States

• Overvie+ o4 overa00 mar;et situation +itin te 8em:er States? at

European an ,0o:a0 0eve0s

• ist o4 ata sources an contact persons at nationa0 0eve0 an 4or speci4ic

sta;eo0er sources

as; %   • 8aBor input to case stuies trou, maBor activitiesinitiatives 0aunce at

mem:er state 0eve0 +it an impact on te competitiveness o4 te

construction sector 

• escriptions o4 maBor construction mar;et eve0opments in te countries?

at a European or internationa0 0eve0? +ere possi:0e? inc0uin, te su:-

sectors

• Gro+t prospects 4or te construction sector at mem:er state 0eve0 an at

European 0eve0

• escription o4 most important 4actors in40uencin, te competitiveness o4 te

sector at mem:er state 0eve0s

• ist an summar o4 maBor ocuments an responentse!perts

• 8aBor activitiesinitiatives re0ate to te competitiveness o4 te construction

sector outsie te EU

• ist o4 maBor internationa0 0iterature an responentse!perts

as; "   • Overvie+ o4 main nationa0 re,u0ation ? 0e,is0ation an 4rame+or;

conitions re0evant 4or te overa00 construction sector an te su:-sectors

• >mpact o4 maBor 0e,is0ation (EU or nationa0)

• ist o4 main contact points (or,anisations an responents) 0in;e to te

re,u0ator 4rame+or;

• Overvie+ o4 impact o4 EU re,u0ation on te construction sector outsie te

EU

• Overvie+ o4 non-EU re,u0ation0e,is0ation? +ic ave an impact on

European construction companies

• ist o4 main contact points (or,anisations an responents)

as; $   • e com:ination o4 a00 7# nationa0 0iterature revie+s +i00 provie a ,oo

:asis 4or te sntesis an S*O process? an +i00 e0p so+ te re,iona0

i44erences +itin te EU.

• e European an internationa0 0iterature revie+ +i00 provie a :asis 4or

comparison o4 te competitiveness o4 te EU an non-EU construction

sector? inc0uin, ,ro+t prospects? re,u0ation? activities an mar;et sares.

 0elivera"les

@ro.ress reportTask 2 will contri5ute to the pro.ress report in Gune 5y reportin. on the work carried outand the findin.s o5tained7 Furthermore/ it will provide the lists of literature/ initiatives

and contact persons identified at national/ European and international levels7

%raft final report and final report

(SCS-619 European Union) – Sector Competitiveness – Construction sector 76

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These lists will 5e updated and placed in anne8 of the draft final report and final report inorder to allow the reader to trace the sources of the study7

a:0e %." etai0e time p0an 4or tas; 1

Month 5eek 6re/analsis 7iterature

revie1s

Snthesis of 

findin*s

8inalisation

Hanuar 1 I

7 I I

% I I

" I

3e:ruar $ I I

6 I I

# I I I

2 I I I

8arc 9 I I I

 Allocation of resources

The overall allocation of resources for Task 2 is ;$ workin. days7 The Ta5le < 7# 5elowshows the allocation of resources 5y activity and partner7

a:0e %.$ '00ocation o4 resources in tas; 1

Activities Nu&ber of das

D49 Ecors 9DEA 4otal

Pre-ana0sis 7 & & 2

>nternationa0 iterature revie+ ".$ & & #-%

European 0iterature revie+ 1.$ & & -%

/ationa0 0iterature revie+s 7& 7" 1% %,

Sntesis o4 4inin,s $ $ 7

3ina0isation # & & ,

4otal nu&ber of das #0 2: % (#

The Ta5le < 7" 5elow shows the .eo.raphical covera.e of the three partners workin. on

Task 2'

a:0e %.6 Geo,rapica0 covera,e o4 iniviua0 partners

6artner Countr covera*e in the literature revie1

D49 EU-27 

International F US'? Cina? 'ustra0ia? Canaa or +ere re0evant accorin, to su: sector

4ocus?

EU countriesF enmar;? S+een? 3in0an? atvia? Estonia? ituania? En,0an? >re0an?

 'ustria? 8a0ta

EC;+<S Po0an? =un,ar? S0ova;ia? CJec Repu:0ic? >ta0? Spain? Portu,a0? Romania? u0,aria?

S0ovenia? /eter0ans9DEA e0,ium? 3rance? German? Greece? Cprus? u!em:our,

(SCS-619 European Union) – Sector Competi tiveness – Construction sector 7#

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0n initial list of specific sources for the international and EU is provided 5elow'

a:0e %.# @e sources o4 te stu

E= and international

or*anisations

• European Commission

• Europe >nnova ('3>>O)

• OEC

• U/C'

• European 8onitorin, Centre on Can,e

• European 3ounation 4or te improvement o4 +or;in, an 0ivin,

conitions

• CEE3OP

• CESPR>

• >PS

• E@ES

Construction sector

Stakeholders

• CEP8C

• EC

• 3>EC

• E3**

• E>C

• UEPC

• EC3 (European Construction 3orum

•  'CEF 'rcitects Counci0 o4 Europe

•  'EEEF 'ssociation o4 European ui0in, Surveors an Construction

E!perts

• E3C'F European 3eeration o4 En,ineerin, Consu0tanc 'ssociations

• ECCEF European Counci0 o4 Civi0 En,ineers

• 3E'/>F European 3eeration o4 /ationa0 En,ineerin, 'ssociations

• ECCRE>F European Counci0 4or Construction Researc an

eve0opment an >nnovation

Consultants   • Euroconstruct /et+or;

• e0oitte - op 1&& Construction companies

• Price*aterouseCoopers

• >n,

• Ro0an er,er 

• Researc

9nternational construction

stakeholders outside E=

• C>C'

• 3USCC' (US' an Canaa)

•  'GC – US'

•  'C' - 'ustra0ia

• Cina /ationa0 emocratic Construction 'ssociation (C/C')

•  'CC – Canaa

;ther    •  'caemic Bourna0s

• EUROS'

• /ationa0 Statistica0 O44ices

• /ationa0 sector reports

(SCS-619 European Union) – Sector Competitiveness – Construction sector 72

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<7< Task 3' Collection and presentation of data

The approach to data collection and presentation was outlined in the proposal7 -ere the

focus is on the description of activities/ outputs/ resource and time plannin.7

The aim of Task 3 is to provide a sound descriptive 5aseline of the current marketsituation of enterprises in the construction sector7 &deally this set of 5aseline data willcontain a core of identical 9compara5le: data for each su5sector/ so that the same set ofindicators relevant for the su5seBuent analytical tasks will 5e used7 The core of the datacollection and the analysis will 5e 5ased on EUR4ST0T data7

The collection of data is a vital part of this study7 To.ether with the literature survey/ thedata collection will form the 5asis for the su5seBuent analyses 9Task </ $ and #:/ includin.

a mappin. of the competitiveness of the sector and evidence of the results of the 266=Competitiveness 0.enda – meetin. its four main o5Aectives 9see the introduction:7

1eographical coverage

Task 3 is dedicated to providin. an overview of the current market situation ofconstruction enterprises in the EU and the .lo5al construction sector7

The market data and information will 5e collected for each >em5er State 9EU(3=:/European Economic 0rea 9EE0: countries/ and if possi5le for SwitHerland and Turkey7 &twill also include e8tra and intra EU(trade/ conducted 5y the construction sector and –where relevant – su5sectors – primarily professional services and 5uildin. material

sectors7

&n addition/ the study will include data on other world re.ions that are considered themaAor competitors to Europe on the .lo5al market in relation to especially two su5sectors 5ein. 5uildin. materials and professional services7

Specific su"sector data coverage

For the 5uildin. materials sector the key countries will depend on the different 5uildin.material se.ments and therefore the data analysis will 5e .uided 5y the knowled.e andinsi.hts of the su5sector e8perts and contacts conducted in task 27

For the professional services sector the key countries outside Europe with internationaloperatin. firms is primarily the US0 5ut also Canada7 -owever/ the .rowth markets in&ndia/ 1raHil/ Russia and China also have siHea5le local operators7

-owever/ with re.ard to the various types of data descri5ed 5elow/ for China/ the dataavaila5ility is very limited7 0lso for Gapan/ the US0/ 0ustralia and Canada/ data is lessdetailed 9with respect to N0CE(levels and types of data: than for the EU7

The study will primarily utilise pu5licly availa5le data7 &n some cases it may not 5e possi5le to find data on the desired N0CE(level or firm siHe7 To supplement the data from

EUR4ST0T and national statistical offices we will 5e usin. e8istin. results from theliterature and input from the stakeholders7 

(SCS-619 European Union) – Sector Competi tiveness – Construction sector 79

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 0ata Collection

%ata collection activity will take place at two levels7 We will collect data at a Europeanlevel 9from primarily EUR4ST0T: for all mem5er states accordin. to the indicators and

reBuirements defined in the competitiveness analysis 9Task <:7 For several indicators/there will 5e no data availa5le at a European level7 Therefore/ we will use the nationaldata sources identified in task 2 to also collect national statistical data from thosecountries 9inside and outside of Europe: where there is data availa5le to cover therelevant performance indicators not covered 5y data at the European level77 0cross 5oth European and national sources the study will collect the followin. types ofdata 9anne8 3 provides a detailed description of 4EC%/ Eurostat/ ,+E>S and othersources whereas the national literature review reports will provide national data sources:'

Structural indicators• SiHe distri5ution 9employment or turnover: of the EU construction sector and its key

su5sectorsI• Sectoral contri5ution to the economy' share of value added in )%@I• Relative importance of construction and its su5sectors across >em5er StatesI• Share of S>Es/ self(employment and micro enterprises/ etcI• Construction activity indicators 5y type7

@erformance indicators• Employment/ and annual employment .rowth ratesI• Turnover/ and annual turnover .rowth ratesI• @rofita5ility ratios 9share of .ross operatin. surplus in value added:I• 0pparent productivity 9and value added: patternsI• R*% e8pendituresI• &nnovation performance indicators 9new products/ processes:• Skills levels and education and trainin. activity 9+FS data:I•  Num5er of fatalities and accidents• Relative e8port performance of the EU construction sector/ intra(EU trade and e8tra(

EU trade 9e8ports and imports:7

@refera5ly the study will use official sources providin. harmonised and compara5lestatistics/ such as Eurostat/ 4EC%/ UN Comtrade/ and the EU ,+E>S data5ase7-owever/ additional data sources from e7.7 sector or.anisations and particular studiesmi.ht 5e included/ provided that they are of similar Buality and compara5le acrosscountries and 9su5(: sectors7

These data will 5e supplemented 5y firm level micro data from the 0madeus and 4r5isdata5ases where necessary in order to improve the analytical potential7 These data5asescontain relatively lar.e samples of companies in the EU(3= and nei.h5ourin. countries/as well as the main economies in the world/ coverin. virtually all N0CE sectors7 Thevaria5les consist of harmonised company accounts and profit and loss accounts for a timespan of ten years7 0lthou.h these data are clearly no su5stitute for official statistics/ theyallow the analysis of particular su5sectors that hitherto could not 5e identified as such inthe other statistical sources7 0n important e8ample of such a su5(sector is sustaina5leconstruction7 0dditionally/ these data5ases allow for a more detailed .eo.raphical

localisation of the key industry .rowth poles in the EU/ Norway and &celand than adistri5ution across >em5er States7 These firm level data are especially relevant for the performance varia5les/ with the nota5le e8ception of siHe(distri5utions for certain strataand .eo.raphical localisation7

(SCS-619 European Union) – Sector Competitiveness – Construction sector %&

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&t has to 5e noted that the success of the micro(economic analysis is critically dependenton the adeBuate identification of the companies that operate in the different su5sectors of

the construction sector7 We therefore envisa.e two complementary methods to identifythe firms in construction and related services'• Top(down approach 5ased on the N0CE rev 272 from most data and rev 37! for some

data as descri5ed a5oveI• 1ottom(up' identification throu.h stakeholders and e8perts at European and national

level7 0s a refinement to the top(down approach/ individual construction companies/incl7 services will 5e identified throu.h stakeholders/ data5ases and e8perts7>em5ership lists of associations mi.ht also 5e helpful in this respect7 &n particular the 5road .roup of 5uildin. material and products manufacturers and suppliers will needto 5e identified throu.h this approach as they cover many different N0CE codes andin most cases with no official data availa5le7

The 0madeus data set will 5e used to supplement the analysis with company 5alancesheet data and developments in profita5ility mar.ins7

+ocation and structure of the construction sector can 5e done with Eurostat/ 4EC%/ andnational data where necessary67

E8pected outputs from data collection•  National data collected or.anised 5y type of structural and performance indicators

 providin. detailed information on what the data represents and how it was calculatedand .athered 9possi5le limitations to the use of the data:

• European data collected a.ain or.anised 5y type of structural and performanceindicators and providin. detailed information on data7

• +ist of indicators where data is limited or non(e8istent7

 0ata presentation

The details of what will actually 5e presented will evolve as the various Tasks .etunderway/ in particular Tasks 2 and <7 Nonetheless/ we see the primary purpose of the presentation activity within Task 3 as providin. a sound Buantitative 5asis for furtheranalysis for Tasks < and to some e8tent $7 Furthermore it provides the necessary statisticalconte8t information for sector inBuiries and interviews7 The structural data for the sectorand su5sectors will 5e analysed and presented within this task and therefore the structural

analysis contri5ution to the pro.ress report and final report will 5e prepared in this task7

&n Ta5le < 7;/ we provide an indication of the types of indicators and their utilisation – 5oth for the primary presentation and su5seBuent analysis in Task <7 When undertakin.the identification/ collection/ processin. and checkin. of data/ an inventory sheet such asshown in ta5le 3 will 5e completed usin. a similar format 5ut specifyin./ in more detail/the source of data to 5e actually used and each individual indicator to 5e developed andanalysed7

a:0e %.2 Overvie+ o4 te ata sources (see anne! 7 4or a more etai0e escription)

Structural indicators Data/Sources 4i&e/covera*e Countr Covera*e +e&arks

9 8icro-economic ana0sis o4 te ata inc0ues ata c0eanin,? e!traction an statistica0 ana0ses.

(SCS-619 European Union) – Sector Competi tiveness – Construction sector %1

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SiJe istri:ution(emp0oment or turnover)o4 te EU constructionsector an its ;e su:-

sectors

Eurostat Structura0usiness Statistics

1996-7&&# (timecovera,e epens onspeci4ic inicator)

EU7# - avai0a:i0it 4or/O? >S an C=epens on tespeci4ic inicator 

Sectora0 contri:ution to teeconomF sare o4 va0ueae in GP

Eurostat Structura0usiness Statistics

1996-7&&# (timecovera,e epens onspeci4ic inicator)

EU7# - avai0a:i0it 4or/O? >S an C=epens on tespeci4ic inicator 

OEC S'?S'/ ata:ase4or structura0ana0sis

7&&7-7&&#OEC countries tusinc0. US? Hapan?Canaa an 'ustra0ia

Re0ative importance o4construction an itssu:sectors across 8em:er States

Eurostat Structura0usiness Statistics

1996-7&&# (timecovera,e epens onspeci4ic inicator)

EU7# - avai0a:i0it 4or/O? >S an C=epens on tespeci4ic inicator 

EU @E8Sata:ase

19#&-7&&$ (timecovera,e epens onspeci4ic inicator)

EU7$US

OEC S'?S'/ ata:ase4or structura0ana0sis

7&&7-7&&#OEC countries tusinc0. US? Hapan?Canaa an 'ustra0ia

Sare o4 S8Es? se04-emp0oment an microenterprises? etc

Eurostat Structura0usiness Statistics

1996-7&&# (timecovera,e epens onspeci4ic inicator)

EU7# - avai0a:i0it 4or/O? >S an C=epens on tespeci4ic inicator 

OEC S'?

>nustr anServices?Structura0usiness Statistics

7&&7-7&&#OEC countries? tusinc0. US'? Canaa?

 'ustra0ia :ut notHapan

Eurostat a:our3orce Statistics

1992-7&&2

EU7# - avai0a:i0it 4or/O? >S an C=epens on tespeci4ic inicator 

 't a cost

Construction activitinicators : tpe

Euroconstruct 7&&$-7&11 (4orecast)

 '? E? CK? @? 3>?3R? E? =U? >E? >?/? /O? P? P?S0ova;ia? ES? SE? C=?U;

o :epurcase

6erfor&ance indicators Data/sources 4i&e/covera*e Countr Covera*e +e&arks

Emp0oment? an annua0emp0oment ,ro+t rates

Eurostat Structura0usiness Statistics

1996-7&&# (timecovera,e epens onspeci4ic inicator)

EU7# - avai0a:i0it 4or/O? >S an C=epens on tespeci4ic inicator 

(SCS-619 European Union) – Sector Competitiveness – Construction sector %7

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Eurostat? a:our3orce Statistics

1992-7&&2

EU7# - avai0a:i0it 4or/O? >S an C=epens on tespeci4ic inicator 

EU @E8Sata:ase

19#&-7&&$ (timecovera,e epens onspeci4ic inicator)

EU7$US

OEC S'?S'/ ata:ase4or structura0ana0sis

7&&7-7&&#OEC countries? tusinc0. US'? Canaa?

 'ustra0ia an Hapan

urnover? an annua0turnover ,ro+t rates?

Eurostat Structura0usiness Statistics

1996-7&&# (timecovera,e epens onspeci4ic inicator)

EU7# - avai0a:i0it 4or/O? >S an C=epens on tespeci4ic inicator 

Pro4ita:i0it ratios (sare o4

,ross operatin, surp0us inva0ue ae)

Eurostat Structura0usiness Statistics

1996-7&&# (time

covera,e epens onspeci4ic inicator)

EU7# - avai0a:i0it 4or

/O? >S an C=epens on tespeci4ic inicator 

EU @E8Sata:ase

19#&-7&&$ (timecovera,e epens onspeci4ic inicator)

EU7$US

OEC S'?S'/ ata:ase4or structura0ana0sis

7&&7-7&&#

 'pparent prouctivit (anva0ue ae) patterns?

Eurostat Structura0usiness Statistics

1996-7&&# (timecovera,e epens onspeci4ic inicator)

EU7# - avai0a:i0it 4or/O? >S an C=epens on te

speci4ic inicator 

R e!penituresEurostat Structura0usiness Statistics

1996-7&&# (timecovera,e epens onspeci4ic inicator)

EU7# - avai0a:i0it 4or/O? >S an C=epens on tespeci4ic inicator 

OEC S'?Researc aneve0opmentStatistics

192#-7&&#

OEC countries? tusinc0. US'? Canaa?

 'ustra0ia an Hapan Cina

S;i00s 0eve0s (3S ata)Eurostat?Eucation anrainin,

7&&$

EU7# - avai0a:i0it 4or/O? >S an C=epens on tespeci4ic inicator 

EU @E8Sata:ase

19#&-7&&$ (timecovera,e epens onspeci4ic inicator)

EU7$US

Re0ative e!portper4ormance o4 te EUconstruction sector? intra-EU trae an e!tra-EUtrae (e!ports an imports)

*O? rae inCommercia0Services :Cate,or(>nternationa0rae Statistics7&&2)

7&&"-7&&6>ntra EU (on0 on EU0eve0) an e!tra EUtrae (+it US? Cina)

On0avai0a:0e 4or constructionservices

(SCS-619 European Union) – Sector Competi tiveness – Construction sector %%

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%espite the focus on the Buantitative data/ it is however fruitful to do a num5er ofinterviews with key stakeholders in the EU construction industry at this sta.e7 &t has a fewimportant advanta.es'

• 1enchmarkin. of Buantitative insi.hts with sector representatives? views ande8pectationsI

• &dentification of additional sources if necessaryI• Early insi.hts and feelin. with the sectorI• &dentification of key policy issues and repercussions for data collection7

E8pected outputs of data presentation'• %ata presentation will include the formulation of a standard reportin. format which

will provide the answers a5out key data aspects in the su5seBuent TasksI• %ata presentation will provide the actual ta5les and fi.ures comprisin. data evidence

to 5e used in su5seBuent tasks7 &t will produce a contri5ution to the pro.ress report in

the form of a presentation of the structure of the sector and su5sectors7

<7<72 &nputs to other tasks

as; 1   • Con4irmation o4 ;e inicators tat reAuire ata co00ection an ana0sis

• Su:sectors an countries ominatin, internationa0 trae

• Sources o4 Auantitative in4ormation (statistica0 ata sources)

as; %   • Presentation o4 per4ormance ata 4or te sector as a +o0e an su:sectors

speci4ica00

as; "   • ata evience o4 re,u0ator impacts at nationa0 an European 0eve0 (+ere

possi:0eavai0a:0e)

<7<73 %elivera5les

Three contri5utions to delivera5les are envisa.ed under Task 3'

$i% Progress report 

This workin. note will detail all proposed data sources used/ indicators produced/ andspecific data issues addressed andor methodolo.ical developments necessary to handlethese issues7 Furthermore/ the contri5ution to the pro.ress report will comprise thestructural mappin. of the sector and su5sectors usin. national and European data7

$ii% inal report on data sources2 analysis and key findings

The task will present and descri5e the main facts and key information relevant for theconstruction sector and su5sectors7 This report will contain the necessary presentation ofthe sector which is the main reBuirement of the Task7 &t will include most recentlyavaila5le data on relevant indicators collected and presented shortly 5efore producin. thefinal report towards the end of the study7

$iii% 0ata anne&

@rovidin. documentation and an E8cel data5ase of data and correspondin. indicators7

(SCS-619 European Union) – Sector Competitiveness – Construction sector %"

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<7<7< %etailed time plan for task 3

Month 5eek 9ndicator and

data source

verification

European data

collection

National data

collection

Data

presentation

3e: $ I

6 I I

# I I

2 I I

8arc 9 I I

1& I I

11 I I

17 I I I

1% I I I

 'pri0 1" I I I

1$ I I

16 I I

1# I I

8a 12 I

19 I

7& I

71 I

"7

"% I

/ov "" I I

"$ I I I

"6 I

"# I

ec "2

"9

$&

$1

<7<7$ 0llocation of resources in task 3

The overall allocation of resources for Task 3 is ;! workin. days7 The Ta5le < 76 5elowshows the allocation of resources split into activities and partners7

(SCS-619 European Union) – Sector Competi tiveness – Construction sector %$

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a:0e %.9 '00ocation o4 resources to tas; 7

Activities Nu&ber of das

D49 Ecors 9DEA 4otal>nicator an ata source veri4ication " & $ 0

European ata co00ection % & 7& 23

/ationa0 ata co00ection 76 & % 2:

ata presentation 1& & 9 :

4otal nu&ber of das #3 0 3, (0

<7$ Task <' Competitive position and .lo5al markets

The approach to implementin. Task < is descri5ed in the proposal7 The task consists offive activities/ cf7 Fi.ure < 7# 5elow'

3i,ure %.$ 'ctivities in tas; %

<7$72 0ctivities

$a% 3verview of the E+ construction markets and locations $country perspective%

&n Task <a we will identify the se.ments of the EU construction market in relation to key performance indicators' turnover and turnover .rowth rates/ employment andemployment .rowth rates/ productivity and value added/ profita5ility ratios/ R*%e8penditures and e8ports 9intra(EU and e8tra(EU:7 The Commission may su..estadditional performance indicators to 5e included in the analysis7

%evelopments in the selected performance indicators will 5e analysed at country leveland at su5sector level 9su5Aect to data availa5ility: on the 5asis of Buantitative datacollected in Task 37 The selection of indicators will differ dependin. on the su5sector

 5ein. analysed to reflect the structural differences 5etween the su5sectors7

(SCS-619 European Union) – Sector Competitiveness – Construction sector %6

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Specifically in relation to cost controllers and 5uildin. control 5odies the competitivenessanalysis will focus on the followin.'

Cost controllers>.uantit surveors )uildin* control bodies

• 8ar;et eve0opments 4or cost contro0 an

Auantit survein, in construction

• E!port an imports o4 Auantit surveor

services

• >mpact on competitiveness o4 te

construction sector an its su:sectors

(especia00 te pro4essiona0 services an

construction activities)

• eve0opments in activities o4 private0 an

pu:0ica00 operate :ui0in, contro0 :oies

• Gro+t o4 te sector

• Competition in te :ui0in, contro0 sector 

• e impact on te competitiveness o4 te

construction sector an its su:sectors o4

te :ui0in, contro0 :oies an activities

,ey competences and niches 9e7.7 sustaina5le construction/ lean construction/ off(siteconstruction or specialisation in specific types of constructions or services:will 5eidentified for each mem5er states on the 5asis of data collected in Task 27

E8pected outputs of the activity• )eo.raphical mappin. of the performance of the construction sector at national and

su5sector levels to 5e included in the final report 9charts and ta5les:I• )eo.raphical mappin. of the key sector(specific competences and niches at national

level7 This will ena5le us to identify e8istin. or emer.in. clusters of competence inEurope7

$"% Selecting cases and carrying out case studies0 total of ei.ht case studies of developments in the competitiveness of the constructionsector and su5sectors in Europe will 5e carried out on the 5asis of the informationcollected in Task 2 and Task <a7 The case studies will ena5le the Contractor to identifyand analyse competitiveness drivers/ differences 5etween su5sectors and sectordevelopments such as consolidation/ value chain reconfi.uration and cooperation7 Thecase studies also provide an opportunity to e8plore the impact of actions implemented inrelation to the 266= Competitiveness 0.enda for the construction sector as well as recentinnovative and successful policy initiatives at national levels 9identified in Task 2: thatcould inspire future policy initiatives at the European level7 

0 matri8 structure will 5e developed indicatin. which are the key competitiveness issuesto 5e covered in the study 9identified in Task 2: and su5sectors that may 5e e8plored inthe individual case studies 9see ta5le 5elow:'

Subsector Subsector 2 Subsector 3

Competitiveness teme 1 Case I Case *

Competitiveness teme 7 Case Y

Competitiveness teme % Case P

Each case study may focus on several competitiveness themes and a ma8imum of two

su5sectors7

(SCS-619 European Union) – Sector Competi tiveness – Construction sector %#

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The proposed allocation of case studies within the Consortium is as follows'

> " case stuies

Ecors " case stuies

The list of proposed case studies will 5e discussed with the European Commission on the 5asis of a proposal which takes full account of the results of Tasks 2 and <a7 TheCommission will decide on the final selection of case studies7

The case studies will 5e 5ased on the data collected in Tasks 2/ 3 and <a and four to si8face(to(face interviews with stakeholders/ e8perts and .overnment representativesrelevant to the cases 9identified in Task 2:7 0dditional interviews will 5e carried out 5ytelephone if necessary to further e8plore key competitiveness issues7

The case studies and case interviews will 5e 5ased on a common template developed 5ythe Contractor to ensure consistency across the data collection and comparison across thecases7 The draft templates will 5e su5mitted to the European Commission forcommentin. and approval 5efore the case studies and interviews commence7 The casestudies will 5e carried out 5y the core analytical team 9see section $72 on @roAector.anisation:/ and will primarily focus on presentin. national and su5sector data on issuesthat are not sufficiently covered 5y e8istin. European statistical data 5ases7

The draft case study reports will 5e sent to the interviewees for commentin. andvalidation 5efore su5mission to the Commission7 The case study reports will 5e anne8ed

to the final report7 &n the case study reports the authors will e8plicitly identify keylearnin. points and .ood practice e8amples that may 5e useful to include in the finalreport for illustrative purposes7 The e8pected len.th of each of the ei.ht case studies is2!(2# pa.es7

E8pected outputs of the activity• %raft list of potential case studies with su..ested interviewees• >atri8 indicatin. the key focus of each case study considerin. specific su5sectors and

competitiveness themes• Template for case studies and semi(structured Buestionnaire reflectin. the key

competitiveness issues identified in Task 2• Case study reports with key learnin. points and .ood practice e8amples

The case study reports will provide Bualitative information for the analytical activitiesforeseen in Task < and the analysis of re.ulatory and other framework conditions in Task$7

$c% dentifying potential interviewees and carrying out interviews

The contractor will present to the Commission a list of e8perts and stakeholders thatcould provide valua5le input 9e7.7 specialised input on main competitiveness themes orinformation a5out national re.ulatory and other framework conditions: to the study7

0 total of 3$ interviews are carried out in Task <7

(SCS-619 European Union) – Sector Competitiveness – Construction sector %2

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;verall focus of intervie1s Main stakeholder *roups and eperts Appro- nu&ber of  

intervie1s

Onsite construction activities European or,anisations an e!perts "

Pro4essiona0 services European or,anisations an e!perts "

ui0in, materia0s European or,anisations an e!perts 6

Customers an re0ate sectors European or,anisations an e!perts "

G0o:a0 competition >nternationa0 or,anisations an e!perts 6

ota0 num:er o4 intervie+s 7"

The proposed allocation of interviews within the Consortium is as follows'

> 1& intervie+s

Ecors 1& intervie+s

>E' " intervie+s

The interviews will 5e carried out 5y the core analytical team 5y phone on the 5asis of asemi(structured interview .uide addressin. the different key competitiveness themesidentified in the inception phase7 The interview matri8 will .uide the interviewer inselectin. the most relevant themes to focus on in each of the interviews7

0 short interview report with the main points from each interview will 5e sent to theinterviewee for validation and approval7 The interview report will 5e structured accordin.to issues relatin. to Europe?s competitive position 9Task <: and key re.ulatory and otherframework conditions 9Task $: so that information relevant to the analysis of individual

competitiveness themes is easily identified and e8plored in the final report7

E8pected outputs of the activity• Semi(structured Buestionnaire addressin. the key competitiveness themes to 5e

covered in the studyI• &nterview reports structured accordin. to the key competitiveness themes to 5e

covered in the study7

The interview reports will provide Bualitative information for the analytical activitiesforeseen in Task < and the analysis of framework conditions in Task $7

$d% Analysing the competitive position of European countries $national perspective%

The data collected in Tasks 2 and 3 as well as the case studies carried out in Task <5 will provide a 5asis for a comparative analysis of the competitive position of Europeancountries 9national perspective:7

The followin. dimensions will 5e analysed'• Employment/ and annual employment .rowth ratesI• Turnover/ and annual turnover .rowth ratesI• @rofita5ility ratios 9share of .ross operatin. surplus in value added:I• 0pparent productivity 9and value added: patternsI

• R*% e8pendituresI• Relative e8port performance of the EU construction sector/ intra(EU trade and e8tra(

EU trade 9e8ports and imports:I

(SCS-619 European Union) – Sector Competi tiveness – Construction sector %9

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• @erformance of individual countries in markets outside EuropeI• %evelopment and performance of 5usiness and contractin. models7

E8pected outputs of the activity• Section on competitive position of individual European countries in the final report7

The comparative analysis of European countries will 5e continued in Task $ with ananalysis of successful re.ulatory and framework implementations in countries covered 5ythe case studies7

$e% Analysing the competitive position of Europe $international perspective%

Finally/ an analysis of Europe?s competitive situation vis(a(vis main internationalcompetitors will 5e carried out7 This part of the analysis is mainly relevant for two of thethree su5sectors covered in the study' @rofessional services and 5uildin. materials/ sincecompanies involved in onsite construction activities most often operate in local markets7The analysis will also consider the competitive position at su5sector level7 For eachsu5sector the Contractor will identify the main international competitors/ and the non(European countries selected for the 5enchmark analysis of each su5sector may thereforevary7

The analysis will focus on• @erformance vis(a(vis international competitorsI• @erformance in international marketsI• Chan.es in the international division of la5our and emer.in. competitors7

E8pected outputs of the activity• Section on competitive position of Europe as a whole in the final report

$f% dentifying key challenges and possi"le strategic responses

Tasks <d(e will provide the 5asis for the identification of key competitiveness challen.esfor the construction sector in Europe and possi5le strate.ic responses to the identifiedchallen.es7 The strate.ic responses will feed into the development of policyrecommendations in Task #7

E8pected outputs of the activity• Section on key challen.es and possi5le strate.ic responses to the identified

challen.es7

<7$73 &nputs to other tasks

as; "   • >n4ormation on eve0opments in re,u0ator an oter 4rame+or; conitions at

nationa0 an European 0eve0 (case stuies an intervie+s) are 4e into te

ana0sis in tis tas;

• >n4ormation on ,ro+t stimu0atin, po0ic initiatives are 4e into te ana0sis in

tas; "

as; $   •  'na0sis o4 te competitive position o4 te construction sector an su:sectorsin Europe +i00 :e 4e into te sntesis to :e carrie out in tas; $

• @e ca00en,es an possi:0e strate,ic responses to :e 4urter ana0se an

(SCS-619 European Union) – Sector Competitiveness – Construction sector "&

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7$ I

<7$7# 0llocation of resources in task <

 'ctivities /um:er o4 as

> Ecors >E' ota0

8appin, o4 te sector 7 6 2

ra4t 0ist o4 potentia0 case stuies 1 1 7

8atri! o4 case stuies 1 1

emp0ate 4or case stuies an semi-structure

Auestionnaire

% %

Ei,t case stuies an case reports %7

(" case

stuies)

%7

(" case

stuies)

6"

ra4t 0ist o4 potentia0 intervie+ees 7 7

Semi-structure Auestionnaire 7 7

7" intervie+s an intervie+ reports $

(1&

intervie+s)

$

(1&

intervie+s)

7

("

intervie+s)

17

Section on competitive position – /ationa0

perspective

1$ 77

Section on competitive position – internationa0

perspective

1& 1&

@e ca00en,es an possi:0e strate,ic

responses

#

ota0 num:er o4 as 2& %2 2 176

<7# Task $' Re.ulatory and framework conditions

The study will address re.ulatory and other framework conditions at European andnational level7 &t is important to reco.nise that much of the re.ulation affectin. the sectoris formulated and implemented at national level7 Task $ will therefore focus on coverin.re.ulatory developments and policy initiatives at national level via country studies 9Task2: and the case studies 9Task <:7

(SCS-619 European Union) – Sector Competitiveness – Construction sector "7

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The overall activities are shown in the Fi.ure < 7" 5elow'

3i,ure %.6 'ctivities in tas; "

<7#72 0ctivities

$a% 0eveloping the European framework profile

1ased on the input from previous tasks includin. European studies of re.ulatory

frameworks for the sector/ the Contractor will develop a framework profile coverin. theEuropean construction sector as a whole to assess the re.ulatory and other framework conditions affectin. the sector7

The importance of the framework condition/ the trend 95oth past and future:/ and theappropriate .eo.raphic level will 5e listed/ cf7 the template 5elow7 %ue to the differences 5etween the su5sectors of the construction sector/ it is hi.hly relevant to pay specialattention to the effects of the conditions on each of the specific su5(sectors7

(SCS-619 European Union) – Sector Competi tiveness – Construction sector "%

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a:0e %.1& emp0ate 4or European 4rame+or; pro4i0e

Construction sector 9&portance

/ 0

4rend

? > > @

eo*raphical

level

Specific sub/

sectorsaffected

> Re,u0ator conitions

• a:our mar;et re,u0ations

• Competition po0ic

• >nustr-speci4ic stanars

• >nte00ectua0 propert ri,t issues

>> 3rame+or; conitions

• 8ar;et structure

• Geo,rapica0 0ocation an coesion

• @no+0e,e :ase eve0opment

• eve0 o4 s;i00s an access to 0a:our 

•  'ccess to tir countries EU mar;et access

(trae an investment)

•  'ccess to 3inance

• Cost o4 ener, an te0ecommunications

>>> E!o,enous conitions

• ecno0o,ica0 eve0opments

• Sustaina:i0it

• G0o:a0 competition

1ecause many of the re.ulatory and framework conditions 95oth in terms of stimulationand re.ulation: have a national character this framework profile will distin.uish 5etweencountries that have an e8tensive re.ulatory framework developed specifically for thesector and those that have a limited re.ulatory framework aimed at the sector7

Finally/ the Contractor will identify and .roup the European countries accordin. to their approach to stimulatin. .rowth and innovation in the construction sector7 These .rowthand innovation measures at national level may inspire future initiatives at European leveland in other mem5er states7

E8pected outputs of the activity• )roupin. of European countries accordin. to the types and level of re.ulatory

conditionsI• +ist of key re.ulatory and other framework conditions to 5e validated 5y

stakeholdersI• 1reakdown of mem5er states accordin. to the level of specific re.ulatory and

framework conditions aimed at the construction sector7 &n addition/ a division ofmem5er states accordin. to different approaches to stimulatin. the .rowth andinnovation within the sector in the short and medium termI

• %escription of the key re.ulatory and other framework conditions affectin. theEuropean construction sector with a special emphasis on the impact of the 6=

competitiveness a.enda on developments7

(SCS-619 European Union) – Sector Competitiveness – Construction sector ""

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$"% dentifying and analysing key challenges

4n the 5asis of the framework profile and national information collected in Task 2/ theContractor will identify/ select and analyse the key re.ulatory and other framework 

conditions and the sector specific challen.es related to these conditions7 @articular attention will 5e placed on the key conditions and challen.es that can 5e influenced at EUlevel7 Furthermore/ the Contractor will consider possi5le strate.ic responses to theidentified challen.es7 The strate.ic responses will feed into the development of policyrecommendations in Task #7

The focus will 5e on'• Role of the 266= Competitiveness 0.enda in the improvement of national framework

conditions and challen.es associated with the implementation of the a.enda atnational levelI

• &dentifyin. and analysin. areas where .reater homo.eneity in the re.ulatory

environment across mem5er states is likely to 5enefit the sector or su5sectorsI• &dentifyin. and analysin. areas where framework conditions are havin. a ne.ative

impact on the competitiveness of the construction sector and its su5sectorsI• &dentifyin. and analysin. national framework conditions or re.ulation that have had a

 particular positive impact on the competitiveness of the construction sector or itssu5sectors and may 5e transferred to other countries with eBually positive impact onthe sector in these countries7

E8pected outputs of the activity• &dentification and analysis of key challen.esI• Strate.ic responses that may 5e considered to address the identified challen.es7

$c% +p to eight illustrative good practice e&amples/ nnovative regulation and policy

actions

The Contractor will identify and descri5e innovative re.ulatory frameworks andsuccessful policy initiatives at national or re.ional level aimin. at improvin. theconditions for companies in the construction sector7 These illustrative e8amples will focuson the achievements within certain re.ulatory conditions that led to improvements in theconditions for competitiveness7 The illustrative e8amples will in some instances 5econtinuations from the case studies in Task <7 -owever/ a ma8imum of four illustrative.ood practice e8amples of innovative re.ulation and policy actions from non(European

countries may 5e included in addition to the ei.ht European case studies if the re.ulatoryinitiatives have shown .ood results7

The e8pected len.th of each of these e8amples is three pa.es7 The .ood practicee8amples will 5e anne8ed to the final report7 E8tracts of the .ood practice e8amples will 5e included in the main report to inspire action at European level 9Task #:7

The analysis will reBuire additional interviews with persons who operate/ understand andhave 5een affected 5y each of the re.ulatory initiatives7

(SCS-619 European Union) – Sector Competi tiveness – Construction sector "$

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E8pected outputs of the activity• %raft list of .ood practice e8amples 9EU and non(EU:I• %escription of ei.ht .ood practice e8amples to 5e used further on in Task # as

e8amples of initiatives that may 5e implemented more widely/ stren.thened ortailored to also cater for other parts of the construction sector7

<7#73 +inks to other tasks

as; $   •  'na0sis o4 ca00en,es associate +it re,u0ator an oter 4rame+or;

conitions inc0. nationa0 i44erences

• @e ca00en,es an possi:0e strate,ic responses

• Goo practice e!amp0es

<7#7< %elivera5les

The task will provide input to the final report in the form of a specific chapter onre.ulation and framework conditions for the European construction sector7 Furthermore/the analysis will hi.hli.ht re.ulatory and framework conditions at the European level thatcall for specific policy initiatives and actions at European/ mem5er state or industry level7This will also provide an indication of the performance of the 6= competitiveness a.endaand successful measures that may 5e continued in the future competitiveness a.enda9Task #:

<7#7$ Time plan for task $

Month 5eek Draft list of  

re*ulator and

other 

fra&e1ork

conditions

European

fra&e1ork

profile

e

challen*es

ood practice

case studies

8arc 9 I

1& I

11 I

17 I I

 'pri0 1% I

1" I

1$ I

16 I

1# I

8aB 12 I I

19 I

7& I

71 I I

Hune 77 I I

7% I I

7" I

7$ I

(SCS-619 European Union) – Sector Competitiveness – Construction sector "6

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<7#7# 0llocation of resources in task $

 'ctivities /um:er o4 as

> Ecors >E' ota0

ra4t 0ist o4 ;e re,u0ator an oter 4rame+or;

conitions

" " 2

escription o4 te ;e re,u0ator an oter

4rame+or; conitions

1$ 17 " %1

@e ca00en,es an possi:0e strate,ic

responses

1$ % 12

ra4t 0ist o4 ,oo practice e!amp0es (EU an

non-EU)

7 7

Ei,t ,oo practice e!amp0es 2 2 16

Section on re,u0ator an oter 4rame+or;conitions

1$ $ 7&

ota0 num:er o4 as $9 7" 17 9$

<7" Task #' Strate.ic outlook

Task # is descri5ed in detail in the proposal7 &n this section the Contractor presents theoperational activities to 5e undertaken in the task7

The task is divided into the followin. five activities'

3i,ure %.# 'ctivties in tas; $

<7"72 0ctivities

$a% State of affairs in the European construction sector and S738 The contractor will provide a synthesis of the findin.s in Tasks 2 – $ and analyse the pro.ress of the 266= Competitiveness a.enda 5ased on the collected data7 4n this 5asis/ a

(SCS-619 European Union) – Sector Competi tiveness – Construction sector "#

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SW4T ta5le for the sector as a whole will 5e produced with a 5rief description of each ofthe Stren.ths/ Weaknesses/ 4pportunities and Threats mentioned in the ta5le7 TheContractor will clearly indicate which of the su5sectors 9if not all: that the SW4Ts refer

to7

E8pected outputs of the activity• Synthesis of findin.s/ includin. assessment of the 6= a.endaI• SW4T ta5le for the European construction sector and su5sectors7

$"% dentifying implications

The SW4T forms the 5asis for an analysis of the main implications for the future of theconstruction sector and an identification of possi5le medium term strate.ic initiatives thataddress key challen.es facin. the sector7 &n order to e8plore the implications further/ wewill analyse the impact of different scenarios on the construction sector7 The Contractor

will identify and 5riefly descri5e a ma8imum of three scenarios that present differentviews on the future for the European construction sector as a whole in terms of the futureeconomic development paths7

0 total of four to si8 carefully selected e8perts and stakeholders will 5e sent the outlineassessment of the 266= competitiveness a.enda and the scenarios for the futuredevelopment of the sector for their perusal7 Su5seBuently/ interviews will 5e or.anisedwith these persons to .ain feed5ack/ validate the assessment and discuss possi5le future policies and strate.ies7 Their feed5ack will 5e reported in internal interview reports7

Finally/ a draft list of .eneric and scenario specific policy recommendations will 5edeveloped 5ased on the scenario analysis7 This draft list to.ether with the possi5lestrate.ic responses identified in Tasks < and $ provides a startin. point for su5seBuentdiscussions of possi5le policy recommendations with the European Commission 9Task#c:

E8pected outputs of the activity• &dentification of key drivers of chan.e to form the structure of scenariosI• %evelopment of scenariosI• &dentification of main implications of each scenario on the lon.(term competitiveness

of the European construction sectorI

• Four to si8 validation interviews and internal interview reportsI• %raft list of recommendations7

$c% 0evelopment of policy recommendations and actions – policy workshop

The process of developin. policy recommendations will 5e 5ased on the results of theSW4T and scenario analysis and a one,day policy workhop in which the Contractorwill present and to.ether with representatives of the European Commission and steerin.committee mem5ers discuss• ,ey o5Aectives for the future Competitiveness a.endaI• @otential recommendations for policy actions aimin. at these o5AectivesI• Test the ro5ustness of proposed policy recommendations a.ainst different future

scenariosI• &nitial elements of a draft implementation plan/ includin. indicators to assess the

 pro.ress of the future Competitiveness a.enda7

(SCS-619 European Union) – Sector Competitiveness – Construction sector "2

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The draft policy recommendations will take into account national differences anddifferences 5etween su5sectors7 >oreover/ policy recommendations will 5e specified for

key stakeholder .roups to inform the development of a draft implementation plan7 Thekey stakeholder .roups are the European Commission/ National authorities/ &ndustry andtheir associations/ and other stakeholders 9such as standards settin. 5odies/ etc:7

E8pected outputs of the activity• 4ne(day policy workshopI• The Contractor will develop a draft implementation plan in which the key

challen.es/ o5Aectives/ su..ested means and reBuired time horiHon is specified foreach of the key stakeholder .roups/ cf7 Ta5le < 722 5elow'

a:0e %.11 emp0ate 4or >mp0ementation p0an

Challen*e ;b!ectives Su**ested

&eans

4i&e

horiBon

European Commission

/ationa0 autorities

>nustr an teir associations

Oter sta;eo0ers (e.,. stanar settin, :oies)

$d% inal validation workshop

To discuss and test the draft recommendations/ a final validation workshop will 5earran.ed 5y the European Commission7 The Contractor will provide a list of relevant

stakeholders and e8perts that the Commission may consider invitin. to the workshop7The aim is to .ather a representative .roup of people in terms of .eo.raphy/ sector andsu5sector/ client/ other value chain participants and employee interests7

The workshop will include presentations of the results/ feed5ack from the participantsand discussions around key issues and proposed actions in order to identify needs foradAustments/ chan.es or completely new strate.y points7

E8pected outputs of the activity'• +ist of relevant participantsI• @resentation of the results of the study and of draft policy recommendationsI• Final draft of policy recommendations and implementation plan7

<7"73 %elivera5les

The activities carried out in Task # will provide input to the final report in the form of achapter on the strate.ic outlook for the European construction sector7 The study willinclude the followin. elements in the strate.ic outlook'• SW4T ta5les for the sector as a whole and for maAor su5sectorsI• Results of the SW4T and scenario analyses and identification of key challen.es for

the sector and for EU and >em5er State policyI•

@olicy recommendations and draft implementation plan stren.thenin. e8istin. policies as well as su..estin. new policy initiatives and areas where furtherknowled.e and insi.hts are needed7

(SCS-619 European Union) – Sector Competi tiveness – Construction sector "9

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The strate.ic outlook will therefore provide important strate.ic input to the process ofdevelopin. a new competitiveness a.enda for the European construction sector7

<7"7< Time plan for task #

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findin*s

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(SCS-619 European Union) – Sector Competitiveness – Construction sector $&

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<7"7$ 0llocation of resources

 'ctivities /um:er o4 as

> Ecors >E' ota0

Sntesis o4 4inin,s? inc0uin, assessment o4

te 9# a,ena

1& 1& $ 7$

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eve0opment o4 scenarios 6 7 7 1&

>enti4ication o4 main imp0ications 1& 1&

3our to si! va0iation intervie+s an reports " "

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ra4t po0ic recommenations an

imp0ementation p0an

2 $ $ 12

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ota0 num:er o4 as 62 7" 19 111

<7= 4verall delivera5les

The delivera5les for the proAect are 5riefly descri5ed 5elow/ and the delivera5les fromeach task to 5e incorporated in the formal delivera5les are presented in each of the Tasksections a5ove7 We note here what is e8pected in the proAect delivera5les/ with respect tothe completion of tasks7

0part from this inception report/ the contractor will su5mit a pro.ress report/ a draft finaland final report7

• The Progre -eport will 5e su5mitted in the middle of Gune 92"th Gune:7 The Tasks2/ 3/ </ and $ 9+iterature reviewI %ata collectionI 0ssessment of competitive positionI

0nalysis of re.ulatory and other framework conditions: are to 5e completed and adetailed analysis of the work and findin.s is to 5e presented in the pro.ress report7 &naddition/ the pro.ress report will include a preliminary indication of the principalfactors in Task # 9Strate.ic 4utlook: includin. an initial assessment of the M6=Competitiveness a.enda7 

• The &raft .inal -eport will 5e su5mitted ultimo 4cto5er' The report will covertasks 2(# and will descri5e in detail and in full the work planned/ the work carriedout/ the information collected/ and the analyses7 &n particular/ the draft final reportwill present' 0ssessment of the 266= Competitiveness 0.enda 9o5Aectives/

 process/ implementation and results:I %raft o5Aectives for a new competitiveness a.endaI %raft recommendations and policy actionsI

(SCS-619 European Union) – Sector Competi tiveness – Construction sector $1

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%raft implementation plan7

The draft final report will also include a draft E8ecutive summary in En.lish7 The

draft e8ecutive summary will 5e no more than 2# pa.es and will 5e suita5le for pu5lication as a stand(alone paper7

• The .inal -eport will 5e su5mitted in the middle of %ecem5er 2!7 This will 5e thedraft final report descri5ed a5ove/ incorporatin. the comments from stakeholders ande8perts at the evaluation and validation workshop and incorporatin. the amendmentsand additional analyses reBuested 5y the Commission7

The pro.ress report/ the draft final report and the final report will 5e delivered in En.lish7Three paper copies and two electronic versions 9>S Word 6= 7doc P 0cro5at 7pdf: will 5e provided plus an En.lish/ )erman and French e8ecutive summary of the final report7 TheE8ecutive summaries in French and )erman will 5e su5mitted in Ganuary 3!22 and willeach 5e appro87 2# pa.es lon.7

1& The Commission will have <! days to reBuest amendments and additional analyses or reAect the draft final report7 Thefinal report has to 5e su5mitted not later than <! days after receivin. the CommissionDs opinion on the draft final report7The final report shall fully reflect the Commission?s comments7 The Commission must approve or reAect the final reportwithin <! days of receivin. it7 &f the Commission fails to react within the time limit of <! days/ the final report shall 5econsidered to 5e accepted7

(SCS-619 European Union) – Sector Competitiveness – Construction sector $7

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$ @lannin. of activities and riskmiti.ation

The sections 5elow present the Consortium?s proAect or.anisation and procedures forimplementin. the study in a manner which ensures hi.h Buality delivera5les to the fullsatisfaction of the European Commission7 We also present the timeta5le for the

implementation of the study7

$72 Timeta5le of activities and milestones

The total duration of the work is appro8imately twelve months7 0 kick(off meetin. withthe Commission took place on the 2!th of %ecem5er 3!!6 and the minutes of the kick(off meetin. are attached anne8 <7

This inception meetin. may reBuire adAustments to the inception report and study planwhich will then 5e resu5mitted to.ether with the minutes of the meetin. ten workin. daysafter the inception meetin.7

a:0e ".17 imin, o4 te activities

4asks>Months an 8eb Mar Apr Ma un ul Au* Sep ;ct Nov Dec

as; &

P0annin, o4 +or;

as; 1

iterature revie+

>nitia0 intervie+s

as; 7

ata co00ection anana0sis

as; %

8appin, o4 te sector 

encmar; ana0sis

Case stuies

>ntervie+s

as; "

3rame+or; pro4i0e

@e ca00en,es

Goo practice cases

>ntervie+s

as; $

$%

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mid Novem5er in order to discuss the draft final report and the Commission?scomments7

• .inal -eport Preentation and validation workhop7 0t the 5e.innin. of

%ecem5er 3!2!/ we will su5mit the study/ the findin.s and the draft competitivenessa.enda and implementation plan in 1russels at a validation workshop7

• The date will 5e announced no later than at the second meetin. of the monitorin. andadvisory .roup in order to plan the meetin.7

• We will 5e responsi5le for invitin. participants and e8pect participants to 5e recruitedfrom the followin.'o  National contacts identified throu.h task 2 literature and contact review and

further interviews in relation to tasks </ $ and # 9appro8imately 2<# contacts:o European contacts identified throu.h European literature review and mem5ers of 

monitorin. and advisory .roup 9appro8imately "! contacts:

$73 Risk >iti.ation

The followin. ta5le identifies the key risks/ which consortium mem5ers are responsi5lefor miti.atin. the risks and the actions we are and will 5e takin. to miti.ate the risks7 &nthe course of the study/ further risks may 5e identified and similarly we will incorporatethese into the miti.ation plan7

a:0e ".1% 4i&in* of the activities

+isks +esponsible

partners

Miti*ation actions

ac; o4 common unerstanin, o4 te

e4inition o4 te sector (+at is part o4

te stu an +at is not) :et+een

te contractor? European Commission

an sta;eo0ers (as; &) 

 ' is +as iscusse at te ;ic;-o44 meetin,

an +i00 :e 4urter c0ari4ie at te inception

meetin, +it te monitorin, an avisor

,roup. 3ina0 acceptance o4 e4inition +i00 :e

,iven on accept o4 te inception report.

>mportant ocuments are not mae

avai0a:0eput to te attention o4 te

contractor : re0evant sta;eo0ers

(as; 1 iterature revie+)

/ationa0 an

European

corresponents

Criteria +i00 :e set 4or te most important

ocuments. >n ia0o,ue +it te most

important sta;eo0ers at European an

nationa0 0eve0? te aim is tat a00 te important

ocuments +i00 :e ienti4ie an ana0se. '

0o, +i00 :e ;ept on ienti4ie an ana0se

ocuments.

>mportant issues an temes 0ac;

ocumentation? ata anor 0iterature

covera,e

/ationa0 an

European

corresponents

e ocuments an 0iterature ienti4ie +i00 :e

or,anise accorin, to ;e temes in orer to

iso0ate temes tat ave not :een covere

aeAuate0 (+ere 0imite ocumentation is

preva0ent 4or important temes covera,e +i00

:e :ooste trou, Aua0itative intervie+s +it

e!perts).

ac; o4 consistent? aeAuate an 4or

some inicators up-to-ate ata on

re0evant areasinicators (as; 7)

>E' an > is +i00 not :e so0ve 4or a00 inicators as

tere +i00 :e re0evant inicators +ere ata is

simp0 not avai0a:0e. =o+ever? te consortium

+i00 ma;e it e!p0icit in te pro,ress report

(SCS-619 European Union) – Sector Competi tiveness – Construction sector $$

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+ere ata ave :een ienti4ie 4or +at

inicators an +ere not. Sta;eo0ers are

+e0come to provie aitiona0 ata +ere

possi:0e. 3urtermore? te contractor +i00

co00ect ata a,ain to+ars te en o4 te stu

on se0ecte inicators in orer to inc0ue te

most recent ata?

ac; o4 contri:utions 4rom speci4ic

sta;eo0ers

> an

corresponents

 't inception pase an +it te su:mission o4

te pro,ress report? +e +i00 report on te

sta;eo0ers consu0te an te monitorin,

an avisor ,roup ma su,,est aitiona0

sta;eo0ers to consu0t an peraps e0p +it

te introuctions.

ac; o4 re0evant case stuies at po0ic

an sector initiative 0eve0 (as; 1? %? "

an $)

 ' urin, te 4irst pase o4 tas; 1 one or more

po0ic or sector 0eve0 case +i00 :e ienti4ie 4or

eac mem:er state an simi0ar0 te

European 0iterature an contact revie+ +i00

ienti4 re0evant cases 4or 4urter ana0sis in

tas;s %? " an $. >nitia0 va0iation o4 te cases

+i00 :e conucte : te nationa0 an

European corresponents

Sta;eo0er 4ee:ac; on te 9#

competitiveness a,ena

imp0ementation is inaeAuate to ra+

conc0usions (as; $)

e EC > e Commission +i0 0 e0p ienti4 re0evant

sta;eo0ers an persons invo0ve in te

imp0ementation process to :e use in re0evant

intervie+s.

Evience o4 imp0ementation? resu0ts

an impacts o4 te 9# competitiveness

a,ena is inaeAuate to ra+

conc0usions (as; $)

e EC > e European Commission +i0 0 e0p co00ect

re0evant ocuments escri:in, te

imp0ementation o4 te a,ena. >nicators o4

re0evant resu0ts +i00 :e ra+n up an use to

ienti4 ata sources.

e 4ocus on te current crisis

oversao+s te nee 4or 0on, term

so0utions (as; $)

 ' >t +i00 :e important to cover :ot in te

assessment an in te eve0opment o4 te

ra4t 4uture a,ena. >n our consu0tations an

in our ata ana0sis? +e +i00 aress :ot

separate0.

ac; o4 :a0ance :et+een countr an

European covera,e a0so in re0ation to

recommenations an imp0ementation

p0ans

 ' e contractor +i00 stress eAua00 te

importance o4 consu0tations +it sta;eo0ers

at European an at nationa0 0eve0s.

3ai0ure to e0iver mi0estones accorin,

to time sceu0e

> e consortium +i00 p0an te stu in etai0

an provie mont0 pro,ress reports to te

Commission. >n aition? time :u44ers +i00 :e

:ui0t in to te p0an 4or ;e e0ivera:0es

especia00 te 4ina0 report.

ac; o4 re0evant sta;eo0er

participants at te va0iation +or;sop

> '0rea at te :e,innin, o4 tas; 1?

sta;eo0ers +i00 :e ienti4ie at nationa0 an

European 0eve0 in orer to a0so ienti4

potentia0 re0evant participants. e event ate

(SCS-619 European Union) – Sector Competitiveness – Construction sector $6

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+i00 :e announce in ,oo time to te potentia0

participants.

(SCS-619 European Union) – Sector Competi tiveness – Construction sector $#

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# +iterature and stakeholders list

The list 5elow is not e8haustive and will 5e e8panded su5stantially durin. the literaturereview7

0tudie of the +uropean contruction ector/

- 0CE 93!!6: Third snapshot survey of the impact of the crisis on European

0rchitects/ 0rchitects council of Europe/ @resentation of 3# slides/septem5er 3!!67

-- 1icchini/ Fa5io et al 93!!3:' 0 new inde8 of production for the construction

sector 5ased on input data/ %epartimento delle Statistiche Economica/&nstituto NaHionale di statistica70valia5le at'http'www7oecd7or.dataoecd32$6<!!<"2#$7pdf 

- 1N@ @ari5as Real Estate 93!!6: -ouseview/ 4utlook for Europe/ %ecem5er

3!!6 – employment and production in construction

- 1N@ @ari5as Real Estate 93!!6: @R4@ERT RE@4RT/ 4FF&CE >0R,ET&N EUR4@E/ O< 3!!6 – take up in maAor European cities

- C&41 93!!;:' Skills shorta.es in the U, Construction &ndustry70valia5le at' http'www7cio57or.7ukfile.ra52SkillsReport3!!;QWe537pdfLref;#2

%eloitte ++@ 93!!6: Securin. the foundations/ European powers ofConstruction 3!!67

- E0N1>0 93!!6: UFE>0T @resentation' %istri5ution to the Europeansupply chains – The professional market7 >arni8 an -oe/ Secretary)eneral/ >ay 3!!6

- European >onitorin. centre on chan.e 93!!#:' Trends and drivers of chan.ein the European construction sector' >appin. report70vaila5le at'http'www7eurofound7europa7euemccpu5lications3!!#ef!$2$6en7pdf 

- European >onitorin. centre on chan.e 93!!#:' Trends and drivers of chan.ein the European construction sector' Four scenarios7

$9

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0vaila5le at'http'www7eurofound7europa7euemccpu5lications3!!#ef!#""en7pdf 

- F&EC * EF1WW 93!!6: Self(employment and 5o.us self(employment inthe European construction industry7 @art 2' 0 comparative study of 22mem5er states7 Funded 5y %) Employment EC

- F&EC * EF1WW 93!!6: Self(employment and 5o.us self(employment inthe European construction industry7 @art 3' 05stracts of 22 country reports7Funded 5y %) Employment EC

- Cillinan/ Trevor et al 93!!=:' 0 sharp construction sector retrenchment wouldhit &reland and Spain hard/ Standard and @oors70vaila5le athttp'www7eleconomista7esima.Qv3documentosconstructionQsectorQs*p7 pdf 

- 1er.er/ Roland 93!!$:' Success factors in the construction industry in 3!!$0vaila5le athttp'www7roland5er.er7commediapdfr5QpressR1QSuccessQfactorsQ3!!$!;!$QE7pdf 

- 1er.er/ Roland 93!!6:' auswirchnun.en der aktuellen Wirtschaftskrise(Chancen Risiken und >assnahmen7

0vaila5le at'http'www7roland5er.er7commediapdfRolandQ1er.erQStudieQ1austoffindustrieQ3!!6!<<27pdf 

- 1roekhuiHen/ Fleur * @ieter van 93!!6:' Nano(products in the EuropeanConstruction &ndustry ( State of the 0rt 3!!67 E8ecutive Summary7 Novem5er 3!!67 @roduced in colla5oration with F&EC/ EF1WW and &0>with EC support7

- @lischke/ Christiane 93!!6:' 1y..eri o. anl./ %anmarks Eksportrd70vaila5le at'http'www7eksporttiltyskland7um7dkdamenuEksportraad.ivnin.>arkedsmuli.hederSektoranalyser1y..eri4.0nlae.1y..eri4.0nlae.7htm

- @riceWaterhouseCoopers 93!!6: En.ineerin. )rowth – Third Buarter 3!!6en.ineerin. and construction mer.ers and acBuisitions analysis7

- Ventral ver5and %eutches 1au.ewer5e 93!!6:' ,onAunktur * 0nalyse70ktuelle la.e und entwicklun. im 5auhaupt.ewer5e70vaila5le at'http'www7Hd57deHd57nsfE%62%E02<C21"$<;C23#="$0!!3#1C0"Fil

e,03!3(3!!67pdf 

(SCS-619 European Union) – Sector Competitiveness – Construction sector 6&

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-- %eutsche 1ank Research 93!!;: 1uildin. a cleaner planet – The construction

industry will 5enefit from the climate chan.e/ Novem5er 3!!;7

- ,lin.en5er. 93!!": 1etter 5uildin.s throu.h ener.y efficiency – 0 roadmapfor Europe/ @roduced for EUR&>0 and availa5le at'http'www7eurima7or.uploads>oduleXtender%ocuments;6documentsEUQRoadmapQ5uildin.QreportQ!3!<!=7pdf  

- ,WT 1au 93!!$:' 0r5eits.emeinschaft kreislaufwirtschaftstra.er 5au70vaila5le at'http'www7recyclin.5austoffe7depdf>onitorin.(1ericht(,WT1Q#7pdf 

0tudie of energy conumption in the contruction ector'- 1uildin. 0merica 93!!$:' >ovin. toward Hero ener.y homes/ US

%epartment of Ener.y70vaila5le at'http'apps27eere7ener.y7.ov5uildin.spu5licationspdfs5uildin.Qamerica<"6$$7pdf 

0tudie of u'ector market&evelopment of 'uilding proect'- E@0 9266;:' The action plan for ener.y star 5uildin. success7

0vaila5le at'http'www7w5d.7or.cc5ST0Res5mQ37pdf 

- FE>0 93!!#:' Conduits throu.h Em5ankment %ams70vaila5le at'http'www7damsafety7or.media%ocuments@%Ffema(+3""7pdf 

- CT1U- Technical @apers' 0vaila5le at'http'www7ct5uh7or.@u5licationsTechnical@apersta5id=2lan.ua.een()1%efault7asp8

- >aurice an Sante et al 93!!;:' the Consultin. En.ineerin. Sector/ &N)7

0vaila5le at'www7efca75e77726=f"c""(2a6"($ce<(5"5;(f$53##!53a6=7pdf 

*ontruction of other civil engineering proect'ridge$

- 0nderson/ Gohan 9266;:' @rediction of noise from railway 5rid.es70vaila5le at' http'www7s5i7seuploadedlitteraturRapp3!32!/23!-ela3!rapporten7pdf 

- Federal -i.hway 0dministration 93!!!:' >aterials and >ethods for

Corrosion Control of Reinforced and @restressed Concrete Structures in NewConstruction70vaila5le at'

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http'www7tfhrc7.ovstructur!!(!;27pdf 

+lectrical plum'ing and other contruction intallation activitie

-  The European e(1usiness >arket watch 93!!#:' Case Study' Termonica +td9@oland:70vaila5le at' http'www7e5usiness(watch7or.studiescaseQstudiesdocumentsCase3!Studies3!3!!#CSQSR!;QConstructionQ#(Termonica7pdf 

uilding completion and finihing'- C&41 93!!;:' >ana.in. the Risk of %elayed Completion in the 32st

Century70vaila5le at' http'www7cio57or.7ukfile.ra5T>QreportQfullQwe57pdfLref;;!

0upport procee for contruction activitie - riAhoef/ Ru5en 92666:' Roles of supply chain mana.ement in construction/

1erkeley/ Ca/ US00vaila5le at'http'www7ce75erkeley7eduYtommelein&)+C(=@%FriAhoef*,oskela7pdf 

- Construction E8cellence 93!!6:' Seein. the Future ( The Use ofisualisation in Construction70vaila5le at'http'www7constructin.e8cellence7or.7ukpdfinnovationvrpaper7pdf 

- E(1usiness watch 93!!":' &CT and e(5usiness in the Construction &ndustry70vaila5le at' http'www7e5usiness(watch7or.studiessectorsconstructiondocumentsConstructionQ3!!"7pdf 

- E(1usiness watch 93!!#:' Case Study' Skanska 9Sweden:7- 0vaila5le at' http'www7e5usiness(

watch7or.studiescaseQstudiesdocumentsCase3!Studies3!3!!#CSQSR!;QConstructionQ$(Skanska7pdf 

Internali5ation of contruction- +arsen/ Gaco5 Norvi. 93!!;:' Cola5orative workin. in the field of

construction services in %enmark/ university of 0al5or.70vaila5le at'http'v5n7aau7dkf5spretrieve2"#$36!#Colla5orative7pdf 

- >anchester 1usiness School 93!!6:' Study of voluntary arran.ements forcolla5orative workin. in the field of construction services70vaila5le at'http'www7m5s7ac7ukresearchinnovationdocumentsFinalReport@art2We57 pdf 

0tudie of 6uality of contruction$

- 0@W0 93!!2:' Ouality 0ssurance durin. Construction7

(SCS-619 European Union) – Sector Competi tiveness – Construction sector 6%

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0vaila5le at'http'www7apwa7netdocumentsresourcecenterBc(BaQe8amples7pdf 

 

+nhancement of he + and the impact on contruction- European foundation for the improvement of livin. and workin. conditions

93!!#:' Trends and drivers of chan.e in the European construction sector'>appin. report70vaila5le at'http'www7eurofound7europa7euemccpu5lications3!!#ef!$2$6en7pdf 

 

*ontruction ector in Autralia *hina *anada 0A and 8apan/

- *ro,country'- Committee on 0dvancin. the Competitiveness and @roductivity of the U7S7

Construction &ndustry/ National Research Council 93!!6:' 0dvancin. the

Competitiveness and Efficiency of the U7S7 Construction &ndustry70vaila5le at'http'cart7nap7educartdeliver7c.iL*recordQid23=2=*free2

- Autralia'- 0ustralian &ndustry )roup 93!!;:' State of play/ The 0ustralian Construction

industry in 3!!;70vaila5le at'http'www7constructors7com7aupu5licationsisopQnovQ3!!;State3!of 3!@lay3!in3!the3!0ustralian3!Construction3!&ndustry3!(3!Novem5er3!3!!;7pdf 

- *hina'- 1%4 93!!6:' China/ opportunities and 5arriers to in5ound construction7

0vaila5le at'http'5do7scripthandler7com.3!pdfsChina7pdf 

- %eloitte 93!!6: China Real Estate &nvestment -and5ook – The details thatmake a difference/ 3!!6 edition

- Wu/ Xin. et al 93!!#:' input(output analysis of the Chinese construction

sector/ Ruthled.e70vaila5le at'http'www7tamu7educlasseschoudhuryarticles3!7pdf 

- Xiaoyin./ Oian et al 93!!$:' The construction sector in the people?s repu5licof china70vaila5le at'http'www7ilo7or.pu5licen.lishemploymentreconeiipdownloadsetpsetp2#7pdf 

- he world'

- %avis +an.don 93!!;:' World construction 3!!=(3!!;7

(SCS-619 European Union) – Sector Competitiveness – Construction sector 6"

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0vaila5le at' http'www7davislan.don7comuploadStaticFilesE>E3!@u5lications4ther3!Research3!@u5licationsWorldConstruction!=Q!;7pdf 

- Fordham/ @eter 93!!6:' Cost update/ %avis +an.don70vaila5le at' http'www7davislan.don7comuploadStaticFilesE>E3!@u5licationsCostUpdatesCostUpdateQSep!67pdf 

- 0A'- >orris/ @eter 93!!6:' 3!!6 >arket Update( 0 .uide to Workin. in a

Recession/ %avis +an.don70vaila5le at'http'www7davislan.don7comuploadima.espu5licationsUS03!!63!>

arket3!Update7pdf 

- %avis +an.don 93!!6:' Construction industry market report 3!!6/ secondBuarter update7 0vaila5le at'http'www7davislan.don7comuploadima.espu5licationsUS03!!63!3nd3!Otr3!Construction3!&ndustry3!>arket3!Report7pdf  

)ey +uropean contruction companie

- &NC )roup 93!!;:' Sustaina5le %evelopment and 0pproach 5ased on Riskmana.ement and responsi5ility70vaila5le at' http'www7vinci7comvincideveloppementQdura5le7nsf9inde8:&NTR4!2fileS%(annual(report(3!!;7pdf 

- A0*$ http 'www7.rupoacs7cominde87phpenca5outacs

- 0kanka$ http'www7skanska7com

- alfour eatty$ http'www75alfour5eatty7com

- 0tra'ag$

http'www7stra5a.7comdata5asesinternetQpu5liccontent7nsfNavi.a

tionL4pen0.ent*docid=6E3!!1$2!;F3=;FC23#=<"0!!$"=#;E

op 1 contruction companie in the world

- ENR' Top international contractors 93!!;:70vaila5le at'http'enr7construction7compeopletop+iststop&ntlConttop&ntlContQ2(#!7asp

-  No2construction 93!!6:70vaila5le at'http'www7no2construction7com

European stakeholders list

(SCS-619 European Union) – Sector Competi tiveness – Construction sector 6$

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*ontruction activitie

F&EC www7fiec7or. 

E1CEF1WW

uilding material ector

CEF&C 9European Chemical &ndustry Council:  http$::www/cefic/'e

CE@>C 9Council of European @roducers of >aterials for Construction: http$::www/cepmc/org

European 0ssociation of National 1uilder?s >erchants 4r.7 and >anufacturersE@@F 9European @rofiles and @anels @roducers Federation: 

http$::www/eppf/com

@&>0 9@olyisocyanurates &ndustry >anufacturers 0ssociation: http$::www/polyio/org

@olyurethanes we5site http$::www/polyurethane/org

 nsulation materials

EUR&>0 ( http'www7eurima7or.  EUR4@UR 9European 0ssociation of Fle8i5le @olyurethane Foam 1locks>anufacturers:http$::www/europur/com

&S4@0 9European %iisocyanate * @olyol @roducers 0ssociation:http'www7isopa7or.

Profeional ervice ector

Royal &nstitute of Ouantity Surveyors in EuropeConsortium of European 1uildin. Control 9CE1C: www7ce5c7eu 

;ther contruction relevant takeholder at +uropean level

Euro0CE 9The European 0lliance of Companies for Ener.y Efficiency in1uildin.s: http'www7euroace7or.

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0nne8 2' &rish +iterature review completion

(SCS-619 European Union) – Sector Competi tiveness – Construction sector 6#

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Ireland

1/ emplate completed 'y national correpondent <pleae provide your contact detail=$

 Name' @eter 1AZrn +arsen4r.aniHation' %anish Technolo.ical &nstitute 9%T&:E(mail' @1+[dti7dk Telephone num5er' P$#=33!3"=3

2/ Pleae provide detail of one main national repondent <takeholder>= who can provide inight into the competitive ituation of the nationalcontruction ector/

 Name' >artin Whelan4r.aniHation' Construction &ndustry Federation 9C&F:4ccupation' Communications %irector  Contact details' martin[cif7ie/To 5e contacted a.ain forfurther inputL

es

Why was this contactchosen as the main oneL

@eople within the or.anisation pointed at >r7 Whelan as he is the voice of C&F7 The Construction &ndustry Federation 9C&F:actively represents and serves over </!!! mem5ers coverin. 5usinesses in all areas of the &rish construction industry7

 How can the respondent contribute to the following parts of the study?

Task < – The respondent has a solid overview of 5oth the historicchan.es and the .rowth prospects for the &rish construction&ndustry7 -e also has a very .ood overall understandin. of thecompetitiveness of the sector and the su5(sectors7

Task $ – 0s communication %irector in the sector or.anisationthat also covers the su5(sectors/ he has a solid knowled.e ofespecially national and international re.ulation and frameworkconditions affect the sector7

Task # – Close contact to the companies and therefore a.ood understandin. of the o5stacles and ena5lers of thesector7

\This respondent could represent a construction sector or.anisation or a relevant policy institution7

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1

2010 Estimates for Public Services and Summary Public Capital Programme, Ministry ofFinance, ris! "overnment, #ecember 200$%

!ttp&''(((%budget%gov%ie')udgets'2010'#ocuments'Estimates*20)oo+*202010%pdf 

4verview of pu5licspendin. towards theconstruction sector7Recovery of theconstruction sector7

Reducedinvestmentcompared to

 previous years/ 5utthe level ofinvestment in

 previous years has 5een well a5ovethe EU avera.e7

Task 3and <

3

 9o"s : nfrastructure – the road to national recovery2 Construction &ndustry Council/ 3!!69http'www7dkm7ieuploadspdfreportsC&C3!Su5mission3!to3!)overnment7pdf  :7

and

S+'4SS3! 83 8;E 4!S8E< 3< !A!CE ! A0#A!CE 3 '+01E8 =>(>2 The Society ofchartered Surveyors/ 3!!6 

Response to the @C@ 3!2!from the constructionsector7 Future scenarios

 5ased on different amountsof pu5lic investment

Up to =!/!!!construction Ao5scan 5e lost if

 pu5lic investmentin infrastructure isnot increased7Su..estion is astimulus packa.ewith investmentfrom pensionfunds of # 5illion7

Task 3/< and $

<

 <eview of the Construction ndustry =>>? and 3utlook =>>)–=>((/ %epartment of the Environment/ -erita.eand +ocal )overnment 9%E-+):/ prepared 5y %,> Economic Consultantshttp'[email protected]@u5licationsConstruction&ndustryStatisticsFile%own+oad/3223!/en7pdf 

>arket overview/ skills andla5our/ niche markets/

 pu5lic(private sectorinvestment

Sharp decline inmarket andemployment7&nvestment neededfrom pu5lic sectorin order to keepthe constructionindustry in &reland

stron.7 There are possi5ilities inniche markets/especially ener.yefficiency and eco(markets7

Task 3and <

itle and reference: heme"s#: $onclusions: %elevanc

e to

tasks:

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%evelopin. the )reen Economy in &reland/ Report of the -i.h(+evel)roup on )reen Enterprise/ &rish )overnment / Novem5er 3!!6

4pportunities for the construction sector within the.reen economy7 &ncrease of competitiveness of the&rish construction workers7 @u5lic sector investment7

&ncreased focus on .reenopportunities/ 5ut lar.e scalecommitment of the pu5licsector is still to 5e seen7

Task <andTask #7

!/ Pleae provide a input to tak 2 <data collection and analyi= a tatitical data ource for the national contruction ector Where should we look to find relevantstatistical data on employment/ production/ education/ investment levels etc for the construction sectorL @lease provide references to we5 links andor contact points at nationalstatistical offices andor other statistical sources7

We5 sources of national statistical data'

Central Statistics 4ffice &reland 9Construction:http'www7cso7iestatisticsConstruction7htm

Construction statistics – %epartment for Environment/ herita.e and local .overnment/ &rish )overnmenthttp$::www/environ/ie:en:Pu'lication:0tatiticand-egularPu'lication:*ontructionIndutry0tatitic:

Su5(sector data mi.ht 5e o5taina5le from the followin. sector or.anisations'

1uildin. >aterials Federation' 9http'www7i5ec7iesectors1>F5mfdocli5$7nsfwv&CCL4peniew :

oyal nstitute of t!e rc!itects of reland ./& !ttp&''(((%riai%ie'

The &rish En.ineerin. Enterprises Federation 9&EEF:'  !ttp&''(((%ibec%ie'sectors'ieef'(ebieef%nsf'(!omeopenform

The Society of Chartered Surveyors' http'www7scs7iehome

%/ Pleae anwer the following three 6uetion concerning the tate of contruction in thi country on the 'ai of the identified literature and dicuion with the

repondent$

What are the medium to lon. term .rowth prospects for the construction sector/

reland !as seen a s!arp contraction of t!e construction ndustry sector, (!ic! !as gone fromcontributing for 2* of t!e economy .34 billion/ in 2005 to appro6imately 12-13 billion .13*/ in

(SCS-619 European Union) – Sector Competitiveness – Construction sector  #1

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 professional services and 5uildin.materials in this countryL

200$% The decline is the result of a sharp decline in house 5uildin./ across all markets coverin. residential/ commercial and pu5lic investments 9includin. infrastructure proAects:7 The sharp decline has had an impact on all su5(sectors in &reland7 Theoptimal share of the economy is accordin. to C&F appro8imately 2; of )N@7

 Employment 

Employment in t!e ris! construction sector !as declined from appro6imately 700,000 in 2005 to200,000 in 200$, and t!is number is e6pected to fall to a level around 125,000 .direct and indirect/ in2011, (!ic! is e8uivalent to the level in 266$77 

not!er source11 uses t!e ne( 9CE codes to describe t!e decrease in direct and indirect employmentin t!e construction sector .overall :gures are lo(er because of t!e ne( classi:cation/% Direct

employment comprises t!e employment generated by all ;obs created by construction :rms t!at (or+directly on pro;ects, (!ereas Indirect employment is t!at employment generated by :rms t!atprovide t!e inputs to construction pro;ects% <!ese are sometimes called =second generation> suppliersand (ould include, for e6ample, persons employed by manufacturers and distributors of buildingmaterials, t!ose involved in plant !ire, steel fabrication or ;oinery (or+s!ops% Employment inconstruction related professional services .e%g% arc!itects, engineers, planners etc/ is also included !ere%

ccording to t!is source 147,000 people (ere directly employed in t!e construction sector in ?1 200$,some 44,000 less t!an at t!e pea+ .?2 200@/% ndirect employment (as estimated to @3,500 in ?1200$, 3,000 less t!an ?1 200@, a total reduction of appro6imately 123,000 direct and indirect ;obs int!e construction sector .e8uivalent to a reduction of 32*/%

 <!e most recent :gures s!o( t!at t!e proportion of non-nationals (or+ing in construction !asdecreased from 14* in ?7 2005 to 1* in ?1 200$% An t!e basis of national trends, it is estimated t!at51* .13,100/ of t!ose (!o !ave become unemployed in construction since ?7 200@ !ave remained inreland% &t is mainly low(skilled and forei.n workers who have lost their Ao5s7

Corporate failures <!e number of corporate failures !as been increasing rapidly (it! construction and engineering :rmsaccounting for 3* of all corporate failures in t!e :rst si6 mont!s of 200$% <!is !as contributed to t!ee6tremely lo( number of ;ob vacancies in t!e sector, do(n appro6imately 50* in t!e :rst 8uarter of200$ on t!e same period in 2004%

 Pro,ects

22  <eview of the Construction ndustry =>>? and 3utlook =>>)–=>((/ %epartment of the Environment/ -erita.e and +ocal )overnment 9%E-+):/ prepared 5y %,> Economic Consultants

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The whole construction sector has 5een rationalised and it is now more risky for construction industry companies to tender as it is 5ased on low costs7 The avera.e tender price for .eneral contractin. proAects is e8pected to 5e down 5y almost 32 in the twoyears to the end of 3!!67

0ll market se.ments are e8pected to e8perience reductions in tender prices in 3!!6 95ased on 3!!; outlook:'

• For new house 5uildin. proAects the avera.e decline is 2<73• For new .eneral contractin. proAects the avera.e decline is 22• For new civil en.ineerin. proAects the avera.e decline is #7"• For Repair >aintenance * &mprovement 9R>*&: proAects/ the avera.e decline is =7$7

Outlook for the sub-sectors <!ree surveys amongst companies !ave been conducted by construction organisations12 in order toestimate t!e c!anges in t!e sub-sectors and t!e future gro(t! prospects%

B!en as+ed about t!e c!anges in t!e period from 200@ until 200$ t!ere planners !ad seen a signi:cantreduction in numbers employed in t!e private planning sector and also ocal "overnment e6pects t!att!e 17* on temporary contracts (ould lose t!eir ;obs once t!e contract e6pire% 71* of architects (eremade redundant in t!e same period and surveyors !ave seen a 25* fall from Danuary 2004 to Danuary200$%

The Construction &ndustry Federation 9C&F: report that in Ganuary 3!2! all of the professional 5odies 90rchitects/ Surveyors/En.ineers: report an almost total a5sence of new proAects/ so t!e prospects for t!e sub-sectors appear poor%

Planning sc!ools report t!at fe( graduates :nd (or+ and t!ere is no evidence of recruitment ta+ingplace in private planning consulting in t!e near future% <!ere is a reasonable amount of small domestic(or+ for arc!itects, but larger practices are eit!er :nis!ing out ma;or pro;ects under construction or

(or+ing on pro;ects outside reland, usually working to generate 50%-70% of turnover frominternational work.

1eneral growth prospectspossi"ilities

The sector or.anisations e8press a need for pu5lic sector investment 9infrastructure: in order to reach the optimum activity levelfor the construction sector and there5y sustain the competitiveness of the sector7 0lso/ a shift to ener.y efficient construction andeco(construction are seen as a maAor .rowth prospects 5y 5oth the construction sector and the &rish )overnment7

17  >ris P0annin, >nstitute (>P>) Roa0 >nstitute o4 'rcitects (R>'>) an Societ o4 cartere surveors (SCS).

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The most pressin. pro5lem in the residential market is the surplus housin. inventory/ which is leadin. to lower prices and lowerlevels of production7 @rivate non(residential construction has also 5een severely affected 5y the economic recession as weakdemand/ fallin. capital values/ risin. vacancy rates/ pro5lems securin. proAect finance and uncertainty surroundin. the impact of

 N0>0 9see 5elow: are all factors makin. the prospects for recovery in new 5uildin. output anytime soon uncertain7

There is a wide reco.nition within companies/ sector or.anisations and .overnment that 5oth the direct and indirect constructioncompanies will have to look for 5usiness opportunities a5road7 The +eadership $ .rowth initiative descri5ed 5elow is an e8amplewhere companies have received trainin. and increased their international activities7

0 return to positive annual )N@ .rowth seems unlikely until 3!227 >oreover the downside risks remain si.nificant and willdepend on the success of the fiscal consolidation and financial restructurin. plans at restorin. confidence and rei.nitin. economicactivity7

To what e8tent is the 266= EUcompetitiveness a.enda for theconstruction sector coverin. the four maino5Aectives known at the national level andto what e8tent has it 5een implementedL

&t has not 5een possi5le to identify any literature on implementation or results of related to the 266= EU Competitiveness 0.enda7

 New Construction initiatives &'( ) (killnets raining Networks *rogramme

The &rish .overnment has instructed the national Trainin. and Employment 0uthority 9Foras ]iseanna Saothair/ F]S: to focus the provision of support and retrainin. opportunities on construction workers and apprentices who have 5een made redundant7 Theaim is to counter the downturn in housin. construction 5y e8pandin. other areas of the construction industry/ such as renovation

and maintenance works as well as civil engineering 7 Some emphasis has 5een placed on trainin. pro.rammes in emer.in. areas of activity such as the installation of ener.y(efficient eBuipment and the use of renewa5le ener.y sources in construction7

&n addition/ under the Skillnets Trainin. Networks @ro.ramme a num5er of relevant trainin. courses are currently provided to participants/ includin. construction workers/ in knowled.e areas such as 1uildin. Ener.y Ratin./ +ow Car5on Ener.y0ssessment/ 0ir @ermea5ility Trainin./ Ener.y Savin.s and Water -y.iene7 The &rish )overnment sees this as  su"stantive

commitment on the part of this 1overnment to assist those affected "y the current downturn in the construction sector. 9http'www7fas7ieen : 

 +eadership , growth

 <!e original idea - to encourage relands stay-at-!ome construction companies to develop international

franc!ises - (as dreamt up before relands domestic property mar+et cras!ed% )ut its relevance today

is all t!e more urgent, (it! relands construction companies e6periencing (idespread ;ob losses,

see+ing court protection from t!eir creditors and developers !aving to ans(er to a government bad

ban+ agency t!at is set to ta+e over billions in distressed ban+ loans%

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 <!e +eadership $ )rowth initiative/ <! one(day sessions spread over 6 months/ was desi.ned to capitalise on the talent within the&rish Construction &ndustry7 &t is tar.eted at successful CE4s of &rish Construction companies who want to lead their company to.lo5al success7The initiative is lead 5y Enterprise &reland partnerin. with %uke Corporate Education 9%uke CE: to deliver +eadership $ )rowth70 recent article 9Ganuary 3!2!: in the Financial Times2< show that the companies participatin. have e8pressed that in order tosurvive the companies? needs to seek 5usiness opportunities internationally/ as the Mold &reland? will not return7 This view is shared

 5oth in direct construction companies participatin. and indirect/ for e8ample suppliers of 5uildin. materials7http'www7enterprise(ireland7comleadership$.rowthconstruction

7/ According to literature and the main national repondent what are the three mot dominating theme and iue <challenge= for the contruction ector in

thi country in the hort < up to 2 year= and longer term <3 or more year=/ Pleae ee attached lit of theme or add new theme where neceary=@

In the hort term <2 year= In the longer term <3 or more

year=

Pu'lic invetment in Infratructure &rish @u5lic sector construction investments has in the recent years 5een well a5ove the EUavera.e/ 5ut is now sufferin. from a decrease in investments with 67< 5illion already taken outof the multi(annual capital investment provisions for the period 3!!6(3!22 compared with the3!!; pu5lic capital pro.ramme 9@C@:7 There is a si.nificant risk that further reductions in the@C@ may 5e inevita5le – a development which could have ne.ative conseBuences forconstruction prospects in &reland7With Ao5 losses currently takin. place ri.ht across the sector/ the output proAections imply afurther sheddin. of la5our not Aust in construction 5ut in other areas dependant on construction7&n the a5sence of any stimulus for construction/ the level of direct and indirect employment is

 proAected to fall 5ack to around 23"/!!! – levels last seen in the mid(266!s7

Findings from t!e Construction ndustry Council in reland suggest, forinstance, t!at every 1bn invested in infrastructure by t!e "overnment

creates, on average, 10,000 direct and 7,000 indirect ;obs as (ell assigni:cant =induced> employment in ot!er sectors of t!e economy t!roug!t!e spending of construction (ages%

The Construction &ndustry Federation 9C&F:/ 5acked up 5y the &nstitute for CharteredSurveyors/ has presented two scenarios for the &rish )overnment/ 5ased on investment from

 pension funds 9;! invested a5road: in infrastructure 927<5illion per year:7 Scenario ( is ado(nothin. scenario 9no stimulus packa.e:/ which accordin. to the C&F will result in a

The current pu5lic sector ininvestment in infrastructure isimportant to keep the sectorcompetitive in the lon. run7-owever/ in the lon. run it is.enerally seen as important thatthe sector should not 5e overdependent on pu5lic sectorinvestments and that theinvestments should 5e focusedon niche opportunities and eco(construction7

1% ttpF+++.4t.comcmss&4:e#e""a-&%1-114-a6&1-&&1""4ea:c&.tm0

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reduction of #!/!!! construction Ao5s and 3!/!!! induced Ao5s/ plus a loss of 3/"5illionthrou.h increased welfare costs and ta8 loses Total cost will therefore 5e 37"5illion inScenario 27 Scenario = is for the &rish )overnment to invest # 5illion in a stimulus packa.e/which accordin. to C&F will result in safe.uardin. the =!7!!! construction Ao5s/ leadin. towelfare and ta8 savin.s of 37"5illion/ so an overall cost of 37$5illion7

The 3!2! 5ud.et has 5een decided/ 5ut the decision re.ardin. a stimulus packa.e is yet to 5edecided7 -owever/ pu5lic investment is important in order to keep the sector competitiveness/ a

 point 5oth raised 5y the )overnment and the sector or.anisations7&ifficultie in 'anking ytem and

upply of credit

The &rish .overnment have 5een en.a.ed in discussion with the social partners over policies tocom5at the economic recession/ which have centred on maintainin. liBuidity in the 5ankin.sector and have not 5een focused on the construction sector7 %ifficulties in the 5ankin. systemand supply of credits are not themes directly associated with the construction sector7 -owever/it is of maAor importance for the sector as many development proAects 9new 5uildin.s orrestoration: have come to a standstill7

4ne maAor themeinitiative/ which potentially can have a lar.e impact of the future of the &rishconstruction sector/ is the National 0sset >ana.ement 0.ency 9N0>0:2$/ which has 5een setup 5y the &rish )overnment7 The purpose of N0>0 is to address the difficulties in the 5ankin.system and restore the supply of credit for 5usinesses and consumers7

 <!e idea is t!at 9M (ill buy all of t!e land and property developmentloans of t!e si6 ris! ban+s of covered by t!e State guarantee% <!e totalpotential value of t!e loans (!ic! (ill be ta+en on by 9M (ill be around$0 billion% )y ta+ing problem property loans o t!e !ands of t!e ban+s,t!e "overnment hopes to put t!ose institutions in a position (!ere t!ey canresume lending% Ane of t!e +ey tas+s is to 8uantify and value t!e badproperty development assets in t!e ban+s%

-ow the new a.ency evolves over the ne8t period are seen as a critical factor for influencin.confidence amon.st developers and the timin. of a recovery in new development activity7&f successful this could provide a chance of rekindlin. the property market and the economy7&f N0>0 is unsuccessful it could result in maAor developers walkin. away and leave a mass ofunfinished proAects/ which would have hu.e conseBuences for the economy and especially theconstruction sector7

>aintainin. a privatedevelopment proAects will is oneof the key issues in the lon. runfor the construction sector7

1"   ttpF+++.nama.ie

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+co,contruction and energy efficiency Ientify new growth areas ! green economy "iven t!e substantial spare capacity in t!e construction sector at t!emoment, t!ere is a strong argument for "overnment intervention t!roug!energy eGciency improvements in t!e e6isting building stoc+, building ont!e signi:cant investment in sc!emes li+e t!e Barmer Homes1 initiativeand improving t!e energy performance of t!e e6isting second-!and stoc+and its o(n e6tensive estate of buildings%Bit! construction tender prices do(n over 20* from t!eir pea+ for somepro;ects, t!ere is no( a real (indo( of opportunity to increase t!e drive int!ese areas%

EGcient Energy Ise and Management .including Eco-Construction/& EnergyeGciency is one of t!e most eective tools to improve t!e costcompetitiveness of all enterprises and support green enterprises% <!e Hig!evel ction "roup on "reen Enterprise establis!ed in May 200$ by t!e#epartment of Enterprise, <rade and Employment presented t!ree areas ofsigni:cant opportunities for t!e construction related goods and servicessector&

• Energy-eGciency standards s!ould be progressively strengt!enedand e6tended to include all buildings% .#epartment of Environment,Heritage and ocal "overnment/

• Consideration s!ould be given to reducing stamp duty on lo(-carbon!omes .#epartment of Finance/

• Potential to use some of t!e revenues from auctioning of emissionsallo(ances in t!e EI Emission <rading Sc!eme from t!ecommencement of P!ase in 2013, and a carbon ta6 if introduced,to support t!e development of t!e green economy% .#epartment of

Finance/

0s the economy .ears up to meet the challen.es presented 5y the climate chan.e/ sustaina5ilityand .reen a.endas/ it is important to identify new .rowth areas and niche opportunities whichwill not Aust sustain employment 5ut provide re(trainin. opportunities for the challen.es aheadinvestment now underway should re(focus spare capacity towards investment in ener.yefficiency improvements in the e8istin. 5uilt stock and su5stantial .ains to 5e made in theener.y performance of the 5uilt stock/ 5oth residential and non(residential7

Environmental re.ulation andle.islation are e8pected to havea lar.e impact on construction7The &rish construction sectornow have the opportunity toinvest in skills and increasee8pertise within ener.yefficiency and eco(construction/which in the lon. run willimprove the competitiveness ofthe sector/ especiallyinternationally7 This com5inedwith the need to up.rade thehousin. stock/ could createmaAor .rowth prospects for allthe su5(sectors in theconstruction industry7

1$   ttpF+++.sei.ieGrants*armerM=omesMSceme

(SCS-619 European Union) – Sector Competitiveness – Construction sector  ##

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This is 5ein. confirmed 5y research undertaken in &reland and these 5uildin.s must competewith new 5uildin.s that are completed to a much hi.her ener.y efficiency standard7 The

 proposed new car5on ta8 should have a reinforcin. impact in stron. ar.ument for )overnmentintervention to incentivise ener.y efficiency improvements in the 5uilt sock/ and indeed totackle the ener.y efficiency of its own e8tensive estate of 5uildin.s7

-owever/ there is little evidence of maAor ener.y efficiency initiatives within the constructionsector7

(SCS-619 European Union) – Sector Competitiveness – Construction sector #2

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(SCS-619 European Union) – Sector Competitiveness – Construction sector #9

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+ist of key themes to 5e covered 9o5stacles havin. a ne.ative impact on competitivenessof the sector and ena5lers havin. a positive impact on competitiveness

)ey o'tacle having a

negative effect on

competitivene

-ating of

the iue

1 not

important

! very

important

*omment and

e#ample

)ey ena'ler having a

poitive effect on

competitivene

-ating of

the iue

1 not

important

! very

important

*omment and

e#ample

&nternational

competition and trade

 5arriersI enlar.ement of 

the EU

$ 4ne of the

maAor pro5lems

is different

national

le.islation

which is

difficult to adapt

to7 @oland is a

maAor market of 

opportunity/ 5ut

difficult

re.ulatory and

le.islative

conditions are a

hindrance7

)rowth in international

markets inside 9incl7

enlar.ement of the EU:

and outside EU

$ &rish construction

companies are

seekin.

opportunities

a5road/ especially

@oland and the U, 

9e7.7 +ondon

4lympics:

-i.hly skilled

constructions

workforce in

&reland/ which

should 5e used for

e8pandin.

internationally7

%eclinin. marketsI lack 

of investment

# @u5lic

investment inthe short run is

very important/

if there is lack

of investment/ it

will 5e a maAor

o5stacle7

Ouality mana.ement

systemsI ,ey performance &ndicators

and 5enchmarkin.

Ouality pro5lems and

issues in the sector

9incl7 in relation to

 5uildin. materials:

Sustaina5le construction

9cradle to cradle:/

inte.ration of renewa5le

ener.y and introduction

of new 5uildin.

materials

# ery important for

the sector7 Trainin.

are startin. to 5e

.eared towards

this/ 5ut it is still

early sta.es7 This

market is the only

one .rowin. in

&reland and will 5e

a maAor focus/

especially for new

 pu5lic construction

activities7

+ow productivity levels New contractin./ life

cycle costin. and partnership models

< @@@ provide 5oth

opportunities ando5stacles

(SCS-619 European Union) – Sector Competitiveness – Construction sector 2&

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Cost of la5our # Re.istered

employment

a.reements

make the cost of la5our

e8pensive and

also infle8i5le7

 Niche and declinin.

markets

$ &mportant for the

sector/ 5ut not

much has 5een

done yet7

Cost of materials and

ener.y

< Not a maAor

issue as the

maAority of

materials are

from &reland

and prices have

followed/ to

some de.ree/

the recession7

)rowth markets'

Residential/ commercial/

civil en.ineerin.

maintenance and repair 

# This is potentially

a maAor ena5ler/

 5ut it depends on

access to finance

9N0>0: and the

level of pu5lic

sector investments

Cost of land * capital >er.ers and acBuisitions

EU and national

re.ulations and

standardsI le.al

conditions and

 procurement procedures

$ National

le.islation and

re.ulation has a

lar.er impact

than EU

le.islation7 0n

e8ample is thenew pu5lic

 procurement

law/ which

transfer a .reat

deal of risk and

increase

reBuirements/

which will 5e

difficult to

o5tain for

smallercompanies7 This

includes risk

mana.ement

and complicated

contracts7

Research * development

and innovation 9 incl7

European Construction

technolo.y platform:

4

 New contractin.

costin. and partnership

models

< @@@ is a

 preferred model/

 5ut it is time

consumin. and

e8pensive

%evelopments in the

construction process/

includin. mana.ement

 processes/ lean

construction

$ The +eadership $

.rowth initiative is

a .ood e8ample of

up skillin. of

mana.ement/ with

the aim of

 5ecomin. more

(SCS-619 European Union) – Sector Competi tiveness – Construction sector 21

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competitive7 &f

focus is to e8pand

to .lo5al markets/

these issues areimportant

>ana.ement of

construction proAects/

risk mana.ement and

allocation/ lia5ility/

insurance and

.uarantees

$ New

 procurement

rules7 Risks

transfer model

where the risk

are transferred

to companies7

&CT developments/ use

and e8ploitationsI across

construction processes

from site preparation to

demolition/ incl7 < and

$% desi.n and

visualisation tools

$ &mportant in the

lon. run and for

internationaliHation

Skills and la5our

shorta.es and lack of

Buality in education and

trainin.

$ 4utmi.ration of  

skilled la5our7

The num5er of

apprentices has

reduced

si.nificantly

and the num5er

of students are

e8pected to

drop/ which

could have lar.e

conseBuences

for theconstruction

sector in the

lon. run

>ana.ement of

construction proAects

&mproved team workin.

and networkin. across

tradesI su5contractin.

and la5our mo5ility

-ealth and safety at

WorkI developments in

fatalities and accidents

4ff(site construction and

new eBuipment and

machinery

%emo.raphic chan.es 3 1ecause of the

contraction in

the industry this

is not a maAor

issue in the

short run 9see

a5ove:

@u5lic * private sector

investments

# N0>0 and pu5lic

sector investment

are e8tremely

important7 @u5lic

sector invest may

 5e the sin.le most

important theme

for the sector7

+a5our mo5ility 2 Re.ulations and

standards

3 The re.ulation and

standards in

&reland/ especially

within ener.y

efficiency and eco(

co5strauction are

not widespreadcompared to other

EU countries/

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0nne8 3' %ata availa5ility

9ndicators Data/Sources  • 4i&e/

covera*eCountr Covera*e +e&arks

eneral indicators   •

SiJe istri:ution(emp0oment or turnover) o4te EU construction sectoran its ;e su:-sectors

Eurostat Structura0usiness Statistics

• 1996-7&&#

(timecovera,eepens onspeci4icinicator)

EU7# - avai0a:i0it 4or /O?>S an C= epens on tespeci4ic inicator 

- urnoverF 4u00 covera,e on nace 7-i,itis 4rom 7&&1 to 7&&#(e!cept 8a0ta)? ,oo? essentia0 ,aps ear0ier tan 7&&1 ,oocovera,e on nace %-i,its 4rom 7&&1 to 7&&# (" countriesmissin,) ,oo covera,e 7&&%-7&&# on most nace "-i,itsectors (p0um:in,? p0asterin,?N)

- i44erence can :e mae :et+een turnover 4rom inustria0activities? construction itse04? services? civi0 en,ineerin, ortrain, activities

- Persons emp0oeF ,oo covera,e on nace 7-i,its 4rom7&&1 to 7&&# (e!cept P an S>) ,oo covera,e 7&&%-7&&#on some nace "-i,it sectors (p0um:in,? p0asterin,?N)

- pre0iminar resu0ts /'CE Rev. 7 4or 7&&2 on %-i,it 0eve0

Sectora0 contri:ution to teeconomF sare o4 va0ueae in GP

Eurostat Structura0usiness Statistics

• 1996-7&&#

(timecovera,eepens onspeci4icinicator)

EU7# - avai0a:i0it 4or /O?>S an C= epens on tespeci4ic inicator 

- La0ue ae at :asic pricesF unavai0a:0e ,oo covera,e o4va0ue ae at 4actor cost up to 7&&#? on nace "-i,it 0eve0

- La0ue ae at 4actor costF nace7-i,itF 4u00 covera,e 7&&1-7&&# nace%-i,it ,oo covera,e 7&&1-7&&# nace "-i,itF,oo covera,e 7&&%-7&&6

OEC S'? S'/ata:ase 4or structura0ana0sis

• 7&&7-7&&#OEC countries tus inc0.US? Hapan? Canaa an 'ustra0ia

(SCS-619 European Union) – Sector Competitiveness – Construction sector 2"

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can,e? 7&&2

- non-resientia0 construction (eucation? ea0t? inustr?o44ice? commerce? misc?N) in mi00. euro an < can,e? 7&&2

- tota0 civi0 en,ineerin, (roas? rai0+as? ener, an +ater?te0ecomm.? a,ricu0ture?N) in mi00. euro an < can,e? 7&&2

Emp0oment? an annua0emp0oment ,ro+t rates

Eurostat Structura0usiness Statistics

• 1996-7&&#

(timecovera,eepens onspeci4icinicator)

EU7# - avai0a:i0it 4or /O?>S an C= epens on tespeci4ic inicator 

- Persons emp0oeF ,oo covera,e on nace 7-i,its 4rom7&&1 to 7&&# (e!cept P an S>) ,oo covera,e 7&&%-7&&#on some nace "-i,it sectors (p0um:in,? p0asterin,?N)

- pre0iminar resu0ts /'CE Rev. 7 4or 7&&2 on %-i,it 0eve0

Eurostat? a:our 3orceStatistics

  • 1992-7&&2EU7# - avai0a:i0it 4or /O?>S an C= epens on tespeci4ic inicator 

- 3SF on0 avai0a:0e on nace 7-i,its (construction)

- 8a:e more avai0a:0e on purcaseQ

EU @E8S ata:ase

• 19#&-7&&$

(timecovera,eepens onspeci4icinicator)

EU7$US

- Gro+t rates avai0a:0e 4or most countries? time covera,emost0 199$-7&&$

- nace "$ (7-i,i t 0eve0)

OEC S'? S'/ata:ase 4or structura0ana0sis

• 7&&7-7&&#OEC countries? tus inc0.US'? Canaa? 'ustra0ia anHapan

- Some :usiness emo,rap inicators (:irt rates? eatrates?N)

- nace "$ (7-i,i t 0eve0)

urnover? an annua0turnover ,ro+t rates?

Eurostat Structura0usiness Statistics

• 1996-7&&#

(timecovera,eepens onspeci4icinicator)

EU7# - avai0a:i0it 4or /O?>S an C= epens on tespeci4ic inicator 

- urnoverF 4u00 covera,e on nace 7-i,itis 4rom 7&&1 to 7&&6(e!cept 8a0ta)? ,oo covera,e 7&&#? essentia0 ,aps ear0iertan 7&&1 ,oo covera,e on nace %-i,its 4rom 7&&1 to 7&&#(" countries missin,) ,oo covera,e 7&&%-7&&6 on somenace "-i,it sectors (p0um:in,? p0asterin,?N)

- pre0iminar resu0ts /'CE Rev. 7 4or 7&&2 on %-i,it 0eve0

(SCS-619 European Union) – Sector Competitiveness – Construction sector 26

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Eurostat inices   • 7&&$-7&&9EU1$? EU7#? mostimportant countries (3R? >?U@? E?N)

- mont0 ata up to octo:er 7&&9

- turnover ine! an prouction ine!

- avai0a:0e in /'CE Rev. 7? " i,it 0eve0

Pro4ita:i0it ratios (sare o4,ross operatin, surp0us in

va0ue ae)

Eurostat Structura0

usiness Statistics

• 1996-7&&#

(timecovera,e

epens onspeci4icinicator)

EU7# - avai0a:i0it 4or /O?>S an C= epens on te

speci4ic inicator 

- Gross operatin, surp0us turnover F c4 apparent 0a:ourprouctivit? covera,e s0i,t0 poorer 

- ro;en o+n : siJe c0assesF avai0a:i0it up to 7&&#? poor0avai0a:0e 4or :i,,est siJe c0asses

EU @E8S ata:ase

• 19#&-7&&$

(timecovera,eepens onspeci4icinicator)

EU7$US

- avai0a:0e 4or a00 EU-countries

- covera,e 199$-7&&$

- nace "$ (7-i,i t 0eve0)

OEC S'? S'/ata:ase 4or structura0ana0sis

• 7&&7-7&&#

 'pparent prouctivit (anva0ue ae) patterns?

Eurostat Structura0usiness Statistics

• 1996-7&&#

(timecovera,eepens onspeci4icinicator)

EU7# - avai0a:i0it 4or /O?>S an C= epens on tespeci4ic inicator 

- 'pparent 0a:our prouctivitit (,ross va0ue ae per personemp0oe)F ,oo covera,e 7&&1-7&&# on nace7-i,its? ,oocovera,e 7&&1-7&&# on nace %-i,its? covera,e 7&&%-7&&#on nace "-i,its

- ro;en o+n : siJe c0assesF avai0a:i0it up to 7&&#

Re0ative e!port per4ormanceo4 te EU construction sector?intra-EU trae an e!tra-EUtrae (e!ports an imports)

*O? rae inCommercia0 Services :Cate,or (>nternationa0rae Statistics 7&&2)

• 7&&"-7&&6>ntra EU (on0 on EU 0eve0)an e!tra EU trae (+itUS? Cina)

On0 avai0a:0e 4or construction services

;b!ective/relatedindicators

Data/sources  • 4i&e/

covera*eCountr Covera*e +e&arks

R e!penitures Eurostat Structura0usiness Statistics

• 1996-7&&#

(timecovera,eepens on

EU7# - avai0a:i0it 4or /O?>S an C= epens on tespeci4ic inicator 

- investment per person emp0oeF nace7-i,its covera,e7&&1-7&&# nace % i,its covera,e 7&&%-7&&# nace "-i,itsFavera,e covera,e 7&&%-7&&#

- sare o4 R e!peniture in va0ue aeF unavai0a:0e

(SCS-619 European Union) – Sector Competitiveness – Construction sector 2#

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speci4icinicator)

- sare o4 R emp0omentF unavai0a:0e

OEC S'? Researcan eve0opmentStatistics

• 192#-7&&#OEC countries? tus inc0.US'? Canaa? 'ustra0ia anHapan Cina

ota0 intra-mura0 Re!peniture Eurostat Structura0usiness Statistics  • 199#-7&&#  'vai0a:0e 4or some EU 7#-countries (-7&)

- 4rom 0eve0 o4 nace 7-i,its to 0eve0 o4 nace "-i,its? +it 0o+er

num:er o4 countr avai0a:0e in case o4 % an "-i,it 0eve0- :a covera,e 4or +o0esa0e an su:sectors

ota0 num:er o4 Rpersonne0

Eurostat Structura0usiness Statistics

  • 199#-7&&# 'vai0a:0e 4or some EU 7#-countries (-7&)

- 4rom 0eve0 o4 nace 7-i,its to 0eve0 o4 nace "-i,its? +it 0o+ernum:er o4 countr avai0a:0e in case o4 % an "-i,it 0eve0

S;i00s 0eve0s (3S ata)Eurostat? Eucation anrainin,

  • 7&&$EU7# - avai0a:i0it 4or /O?>S an C= epens on tespeci4ic inicator 

- covera,e on nace 7-i,its (construction) on >SCE9#("cate,ories) 4or 7&&7

EU @E8S ata:ase

• 19#&-7&&$

(timecovera,eepens onspeci4icinicator)

EU7$US

- avai0a:0e 4or most european countries an US? Hapan? 'ustra0ia

- in ours +or;e : i, s;i00e meium s;i00e 0o+ s;i00epeop0e

Sare o4 se04-emp0omentEurostat Structura0usiness Statistics

• 1996-7&&#

(timecovera,eepens onspeci4ic

inicator)

EU7# - avai0a:i0it 4or /O?>S an C= epens on tespeci4ic inicator 

- /um:er o4 se04-emp0oe peop0eF ,oo covera,e on nace%-i,its up to 7&&#

- urnoverF F ,oo covera,e on nace%-i,its up to 7&&#

- /ace"-i,itsF unavai0a:0e

*a,e 0eve0s an sa0ariesEurostat Structura0usiness Statistics

  • 199#-7&&# 'vai0a:0e 4or most EU-7#countries (7&)

- ,oo covera,e on nace "-i,its

/um:er o4 part-time +or;ersEurostat Structura0usiness Statistics

  • 199#-7&&6 'vai0a:0e 4or most EU 7#-countries (7&)

- ,oo covera,e on nace "-i,its

- in case o4 inustr an su:sectorsF covera,e up to 7&&#

- in case o4 munu4acturin, su:sectorsF avai0a:i0it o4 inicatornum:er o4 apprentices

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/um:er o4 ours +or;e peremp0oee

Eurostat Structura0usiness Statistics

  • 199#-7&&# 'vai0a:0e 4or most EU 7#-countries (7&)

- 4rom 0eve0 o4 nace 7-i,its to 0eve0 o4 nace "-i,its? +it 0o+ernum:er o4 countr avai0a:0e in case o4 % an "-i,it 0eve0

Purcases o4 ener,Eurostat Structura0usiness Statistics

  • 199#-7&&# 'vai0a:0e 4or some EU 7#-countries (-7&)

- 4rom 0eve0 o4 nace 7-i,its to 0eve0 o4 nace "-i,its? +it 0o+ernum:er o4 countr avai0a:0e in case o4 % an "-i,it 0eve0

- no covera,e 4or inustr an su:sectors? or +o0esa0e ansu:sectors

Emp0oers socia0 car,esEurostat Structura0usiness Statistics

  • 199#-7&&# 'vai0a:0e 4or some EU 7#-countries (-7&)

- 4rom 0eve0 o4 nace 7-i,its to 0eve0 o4 nace "-i,its? +it 0o+ernum:er o4 countr avai0a:0e in case o4 % an "-i,it 0eve0

>nvestment per personemp0oe

Eurostat Structura0usiness Statistics

  • 199#-7&&# 'vai0a:0e 4or some EU 7#-countries (-7&)

- 4rom 0eve0 o4 nace 7-i,its to 0eve0 o4 nace "-i,its? +it 0o+ernum:er o4 countr avai0a:0e in case o4 % an "-i,it 0eve0

Gross investment inicators(in 0an? tan,i:0e ,oos?intan,i:0e ,oos? maciner?N)

Eurostat Structura0usiness Statistics

  • 199#-7&&# 'vai0a:0e 4or some EU 7#-countries (-7&)

- 4rom 0eve0 o4 nace 7-i,its to 0eve0 o4 nace "-i,its? +it 0o+ernum:er o4 countr avai0a:0e in case o4 % an "-i,it 0eve0

- ver :a covera,e 4or oter su:sectors outsie construction(/'CE "$)

- Beneral remark on u',ector coverage

o &nformation in the ta5le on su5(sector covera.e 9nace(level availa5ility in column of remarks: is 5ased on construction 9N0CE $#: andsu5(sectors

o 0ll remarks on N0CE(level availa5ility are also valid for wholesale and su5sectors/ unless stated otherwise7 Covera.e is often sli.htlyworse compared to construction and su5(sectors7

o 0ll remarks on N0CE(level availa5ility are also valid for manufacturin. and su5sectors/ unless stated otherwise7 Covera.e is oftensli.htly 5etter compared to construction and su5(sectors

o Construction(related services' no data availa5le at allo For usa5ility of N0CE(levels in the study' see ta5les in E8cel(sheeto Remarks on N0CE Rev7 3 structural 5usiness statistics 9see 5elow:

only valid for construction 9N0CE $#: and su5sectors/ and for manufacturin. and su5sectors in case of wholesale or services' same rules apply/ 5ut only for two indicators' Mnum5er of people employed? and Mturnover?

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- &ata availa'ility in CA*+ -ev/ 2 <+urotat=

o @reliminary structural 5usiness statistics all countries only 3!!; level of < di.its = 5asis indicators

• turnover • num5er of enterprises• num5er of persons employed• wa.es and salaries•  production value• total purchases of .oods and services• .ross investment in tan.i5le .oods

o &ndustry production inde8 EU2#/ EU3#/ N>S 9indirectly:/ # countries' FR/ &T/ %E/ U,/ ES monthly/ up to 3!!6 >2! only industry(sectors  N0CE $(di.it level

adAusted for workin. dayso &ndustry turnover inde8

EU2#/ N+/ U,/ %E/ &T/ )R  monthly up to 3!!6 >6 only industry(sectors  N0CE $(di.it level non(adAusted for workin. days

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- ;+*&

o data on some 5asic indicators and 5usiness demo.raphic indicatorso for most of the 4EC%(countrieso level of construction 9nace $#:

- +urotat'o other than construction 9$#:

>anufacturin.'• .ood covera.e of 5asic indicators 9num5er of enterprises/ turnover/ wa.es:• on nace $(di.it level• up to 3!!=• even .ood covera.e of non(5asic indicators 9e. investment per person employed:

Wholesale• .ood covera.e of 5asic indicators• up to 3!!=• on nace $(di.its

0rchitectural and en.ineerin. activities'• very poor covera.e 9a handful of countries: even on 5asic indicators

o some interestin. 5usiness demo.raphy indicators for most countries up to 3!!"/ construction as a whole

o

data on &CT 3!!$(3!!= construction 9nace $#: indicators

• @ercenta.e of enterprises 5uyin. over the internet or other networks• @ercenta.e of enterprises usin. internet for 5ankin./ after sales/ marketin.

o Short term statistics

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 5uildin. permits'• for EU3= and 2< countries up to 3!!6 >"/ for 6 countries up to 3!!6 >6• num5er of houses• in m^ floor area• division 5etween Mone dwellin.? and Mtwo or more dwellin.? 5uildin.s

construction production inde8'• for 2" countries• up to 3!!6 >6• division 5etween M5uildin.s? and Mcivil en.ineerin.?

construction new orders'• for # countries up to 3!!6 >6• division 5etween M5uildin.s? and Mcivil en.ineerin.?

construction la5our input inde8'•  for EU3= and some countries up to 3!!6 >6• employment 92< countries:• hours worked 96 countries:• wa.es 92; countries:

residential 5uildin.s prices inde8'• for EU 3= and 23 countries up to 3!!6 >6• also' material input price inde8

• also' la5our cost price inde8

o Re.ional data  NUTS !"(level 9re.ions:' for most countries on construction 9N0CE $#: up to 3!!=

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indicators• num5er of local units• num5er of persons employed• wa.es

- )lem

o data from 266#(3!!#o 0ll EU(countries/ S/ Gapan/ 0ustraliao only for N0CE $# 9F:o  5asic indicators' num5er of employees/ .ross operatin. surplus/ turnover/_o some indicators widely availa5le' compensation/ inputs/ .rowth rateso some indicators only for 5i..er countries 9compensation for hi.h skilled la5our/ inputs of services/_:

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0nne8 <' >inutes of ,ick off meetin.

Competitiveness of the European Constructionsector 

Minute from ); meeting 1th &ecem'er 29 &-A.

0ttendin.• European Commission' Claes 0ndersson/ 0ntonio @aparella/ Ronald >ackay• Consortium' ,nud Erik -ildin.(-amann 9%T&/ team leader:/ @aul 1aker 9Ecorys:/

alentiAn 1ilsen 9&%E0:/ %amo -olt 9Ecorys:/ -enrik Noes @iester 9%T&:

Commission?s comments on the proposal

4verall comments

3",ectives

The intention is to transpose the new competitiveness a.enda into a CommissionCommunication/ .uidin. the official policy over several years,ey issues'- What are the driversL- &dentify demands 9societal: and challen.es for the sector as well as opportunities for

.rowth 9such as eco(construction:- &dentify o5Aectives and policy actions to inform new competitiveness a.enda for the

sector- &dentify modalities for how to implement the strate.y

The challen.es and proposed policy actions will 5e structured accordin. to the time perspective' Short term/ >edium term and +on. term7Consortium will provide a draft a.enda for the sector 5ased on evidence and data70.enda will 5e finalised 5y the Commission in colla5oration with stakeholders andmem5er states7

(SCS-619 European Union) – Sector Competitiveness – Construction sector 9"

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 0efining the sector 

 Need for clear definition of the sector – study covers all aspects of the sector includin.distri5ution/ cost consultants/ 5uildin. control 5odies7 &mportant/ however/ that the study

Mtells the overall story? – not Aust reportin. developments 5y N0CE codes7 0ata collection

%ata collection will 5e 5ased on previous N0CE codes to analyse developments since266= a.enda 9historical perspective:7 Commission reBuests the use of data 5ased on new N0CE codes for analyses of recent developments/ incl7 impact of the financial crisis7 Theavaila5ility of data on recent developments will 5e e8plored further 5y the Consortium7European Commission will provide contact details to relevant e8perts at Eurostat7

 E&ploring national differences

&mportant that the national level is e8plored in the study to ensure that differences inmarkets and re.ulation is taken into account7 The study should take account of the variousnational stimulus measures in response to the current economic crisis/ which impact onthe sector7

 ocus on sector responses

&n the study/ the consortium needs to focus on responses at sector level rather than atcompany level7

 nput from European Commission for the analyses

European Commission will provide'- Ouestionnaire concernin. an on.oin. survey of developments in the European

industry 9carried out in(house 5y different commission units:7 This may 5e useful inidentifyin. key issues for the construction sector7

-  New study on 5uildin. re.ulation in European countries 5y %) enterprise is 5ein.

launched in Ganuary 3!2!7 Not yet scoped7 >ay provide some input to thecompetitiveness study7 Consortium leader could participate in monitorin. andadvisory committee meetin.s for this study to ensure that syner.ies are fullye8ploited7

- Report 5y European Commission on economic recovery in Europe with input on therole of construction sector in this process to 5e finalised in %ecem5er 3!!67 EuropeanCommission will send this to the consortium7

- Report 5y University of >anchester on competitiveness of the construction sector9availa5le on the internet:

- 1enchmarkin. of construction costs in Europe 5y European Commission 9availa5leon the internet:

+nderstanding of Competitiveness

>any dimensions influence competitiveness of the sector7 0 key dimension is optimal useof resources7 The contri5ution of the sector to .rowth in value added and employment inthe EU should 5e hi.hli.hted7 Need for a common understandin. of competitiveness – inthe study as well as amon. stakeholders 9an issue for the monitorin. and advisorycommittee meetin.:7

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Specific comments on proposal

 nception phase

,ey issues'- %efinin. the sector - Content of inception report 9see presentation from the consortium:- %ata sources and involvement of stakeholders7 Consortium to take the lead in the

selection of sources and involvement of stakeholders7 0nalytical focus 9e7.7 keyissues: and the relevant data sources will 5e discussed and further developed incolla5oration with stakeholders7

The Commission reBuests the Consortium to focus on a limited num5er of key indicatorsfor the historical perspective/ and focus resources on data and analyses of recentdevelopments 9e7.7 impact of financial crisis and sustaina5ility a.enda: to ensure

relevance for future(oriented policy actions7 -owever/ the time perspective is 3!3! andthe study should not only address financial crisis and climate crisis/ 5ut focus on thewhole ran.e of challen.es and opportunities in the lon.er term7

 nternational perspective vs. importance of internal market 

&nternational differences 9e7.7 productivity/ value added: could potentially provideinterestin. insi.hts and should 5e e8plored7 The consortium should note that theinternational market for construction sector is small – in relative terms7 There are maAordifferences with re.ard to su5(sectors 9e7.7 professional services and to some e8tentmaterials producers are more active in international markets than other su5(sectors: andEU >em5er States 7 This should 5e reflected in the study7 0 key focus of the study should 5e developments in the EU internal market7 <egulation and framework conditions

&ssues raised'- Cyclical developments 9crisis(.rowth(crisis: – how to prepare the construction sector

for thisL- @u5lic private partnerships to 5e included in the analyses7 >ostly lar.e actors

involved – what a5out small companiesL -ow to provide a platform for small actorsin @@@s and other partnership modelsL Role of small construction companies in social policy – for instance 5y helpin. offenders develop competences7

Strategic outlook 

0ssessment of 266= a.enda – remem5er to consider modalities for implementation`Useful input for implementation of future competitiveness a.enda7 Commission willassist in identifyin. and providin. contact details for stakeholders involved in thedevelopment of the a.enda7 0lso/ the Commission will assist in identifyin. and providin.key documents`The Commission is fully reco.nisin. that the proposed assessment of 266= a.enda cannot 5e a full(5lown impact assessment7 &t was foreseen from the 5e.innin. that thisassessment would rather focus on learnin. points 9e7.7 relevant modalities: for theimplementation of the future competitiveness a.enda7

Contractual matters

The study will 5e planned for 23 months/ and the remainin. two months serve as a 5uffer7)erman and French translation of summaries will 5e provided after final approval of thereport includin. En.lish summary7

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The proposed pro.ress report will 5e named interim report7 0pproval of interim reportwill 5e followed 5y interim payment/ cf7 contract7The team leader will inform the Commission in due time of any possi5le needs to

reallocate resources from other e8penses to personnel e8penses7 This will if necessaryreBuire an amendment of contract7The European Commission a.reed with the work plan and the proposed milestones as presented in the presentation7 

@roAect implementation

Role and involvement of stakeholders

The study is e8pected to provide an independent/ evidence(5ased analysis of the

competitiveness of the European construction sector/ and may reach conclusions thatstakeholders do not necessarily a.ree with7 The study is not intended to reflect aconsensus amon. stakeholders and the consortium is not e8pected to reach suchconsensus with stakeholders7 The stakeholders will 5e invited to validate findin.s and provide additional evidence at meetin.s that are chaired 5y the Commission7 TheEuropean Commission will discuss the study with stakeholders and develop and finalisethe a.enda on the 5asis of the study and the discussions70 key issue is the mana.ement of monitorin. and advisory committee meetin.s ande8pectations of the participants7 The involvement of stakeholders/ includin. thevalidation workshop foreseen for Septem5er 3!2!/ will focus on validation of factual dataand evidence and the link 5etween recommendations/ actions and the evidence on which

they are 5ased7 &nvolvement of other %)s

%ifferent %)s will 5e invited to the monitorin. and advisory committee meetin.s as wellas >em5er state representatives7 These committee meetin.s will pro5a5ly include around<!($# stakeholders and representatives7 The monitorin. and advisory committee meetin.sare part of a consultation process/ 5ut will focus on discussin. the study and providin.factual input to the study7 The Commission will inform the stakeholders andrepresentatives a5out the purpose of the monitorin. and advisory committee meetin.s toensure that focus is on providin. input rather than presentin. policy statements7

%efinition of the sector and data collection

%ata used in the study will 5e a mi8 of Buantitative and Bualitative data7 >ainBuantitative data sources' Eurostat/ 4EC%/ EU klems 9data is not updated since 3!!#:and national sources7Cost consultants and 5uildin. control 5odies – not a5le to 5e covered in the statisticalmappin. of the sector/ 5ut their role and importance for the sector will 5e analysed on the 5asis of relevant studies and documentation plus interviews and case studies7Eurostat data does not distin.uish 5etween architects and en.ineers – may 5e a5le to .et

data on architects via stakeholders 9e.7 The architects Council of Europe:The consultant should also identify related sectors and analyse their relationship with theconstruction sector7 The Commission does not reBuest statistical data on this issue/ 5ut

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rather an assessment of inte.ration with other sectors 5ased on reports and interviews7E8amples of relevant industries are steel/ .lass and wood industries where a si.nificantshare of the production is aimed at the construction sector7

%ata collection will 5e focused on key pro5lems/ challen.es and opportunities rather than providin. a full statistical mappin. of the sector7The study needs to take into account the economic importance of small companies vis((vis lar.e companies and provide data on small companies7 %ata on the sector with re.ardto performance of small companies – for instance companies involved in niche markets9Buantitative data/ such as productivity and .rowth rates:7 0ny differences compared toother sectorsL The study should also provide a view on industry developments focusin.on small companies e.7 mer.ers and acBuisitions 5ased on Bualitative dataLWhat is the economic importance of do(it(yourself 9%amo:L &n some countries it plays amaAor role7 &nception report

Startin. point for the study is the 266= a.enda and the crises 9financial/ environmental:/ 5ut strate.ic outlook needs to focus on future issues7 Commission a.reed with the proposed content of the inception report/ cf7 presentation7

&nvolvement of stakeholders and e8perts

Consortium will provide list of stakeholders and e8perts to 5e involved in the study as part of the inception report7

Su..estions at the meetin. 9in addition to the presented list:'• E8perts with relevant input – for instance Canadian Skills council with forecastin.

model for employment• E8perts on sustaina5ilityL• Standardisation 5odies• European &nvestment 1ank 9E&1: – access to finance

%)s are e8pected to provide su..estions for relevant stakeholders and e8perts at themonitorin. and advisory committee meetin. 5ut individual contacts consortium(relevant%)s will 5e necessary7 9%) Employment/ sectoral social dialo.ue will 5e invited:7

SC >eetin.s 9Now >onitorin. and 0dvisory .roup meetin.:

• 0.enda for monitorin. and advisory .roup meetin.s will 5e sent out 5y the European

Commission7 Consortium to provide draft reports andor other input for the meetin.s7• Consortium will present initial results and discuss findin.s at the meetin.s• First monitorin. and advisory committee meetin.' 36 th Ganuary 3!2!• Steerin. committee to 5e named Mmonitorin. and advisory committee?

Risks and risk miti.ation strate.y

0 list of risks will 5e introduced in the inception report and a miti.ation strate.y will 5e developed and presented in the inception report 9See initial list in the presentation:7

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Communication and mana.ement

• 0.reement on monthly update of @4 Claes 0ndersson followed 5y telephone meetin.

with team leader • @roAect we5site to 5e esta5lished – focusin. on proAect pro.ress and perhaps

 providin. a limited num5er of fact sheets7 @ossi5ility of commentin. on the proAectand the issues 5ein. e8plored7

• >onitorin. * advisory .roup may 5e informed a5out specific findin.s via Circa

system

 Ne8t steps

• See presentation

4verview of e8pected input from the European Commission

-eport and written

material

• Ouestionnaire for in(house survey of European industry• Report 5y European Commission on economic recovery in

Europe 9Ronald:• Report 5y University of >anchester on competitiveness of

the construction sector 9Claes – availa5le on site:• 1enchmarkin. report 5y the European Commission of

construction costs in Europe 9availa5le on site:• ,ey documents relatin. to the development and

implementation of the 266= a.enda• Study 5y S>E unit on su5(contractin. 9Ronald:• &nput on data for architects 90ntonio: – perhaps via contact

to the 0rchitects council of Europe 9Gan >aarten may 5ea5le to provide contact details:

People and contact   • Contact points at Eurostat• +ist of stakeholders involved in the development of the

266= a.enda

Additional input   • @articipation of team leader in meetin.s on upcomin. EC

study on 5uildin. re.ulation in Europe

• &dentification and invitation for monitorin. and advisorycommittee meetin. in Ganuary to stakeholders

• &nformation letter concernin. the study to 5e sent to other

%)s and institutions

0.reed Consortium 0ctions'

• Consortium will provide input for the a.enda for the monitorin. and advisory .roup

meetin.7• >onthly update of @4 Claes 0ndersson followed 5y telephone meetin. with team

leader 9,nud Erik -ildin.(-amann: – first at the end of %ecem5er followed 5y atelephone meetin. around the $th Ganuary7

• @roAect we5site to 5e esta5lished

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• Ouestionnaire that can 5e send out to the mem5ers of the monitorin. and advisory

.roup ahead of the meetin.LL• %raft &nception report to 5e sent to the Commission 5y 2; th Ganuary7

• @resentation of the proAect plan and initial results 9in line with inception report: to 5e prepared for the monitorin. and advisory .roup meetin.7

• The team leader will inform the Commission in due time of any possi5le needs to

reallocate resources from other e8penses to personnel e8penses7