Opinion of the Economic and Social Committee on the 'Communication from the Commission to the Council, the European Parliament, the Economic and Social Committee and the Committee of the Regions on: The Competitiveness of the construction industry'
Date: 1998-04-29
Institutions: European Economic and Social Committee
Subjects: building industry, competition policy, competitiveness, labour market, public works

C 214/16

EN

Official Journal of the European Communities

10.7.98

restricting cadmium in fertilizers to be drawn up by
31 December 2001 on the basis of their findings. The

Committee trusts that the Member States will lend
sufficient support to the Commission in its work.

Brussels, 29 April 1998.

The President

of the Economic and Social Committee

Tom JENKINS

Opinion of the Economic and Social Committee on the ‘Communication from the Commission
to the Council, the European Parliament, the Economic and Social Committee and the
Committee of the Regions on: The Competitiveness of the construction industry’

(98/C 214/06)

On 6 November 1997 the Commission decided to consult the Economic and Social Committee,
under Article 198 of the Treaty establishing the European Community, on the above-mentioned
communication.

The Section for Industry, Commerce, Crafts and Services, which was responsible for preparing
the Committee’s work on the subject, adopted its opinion on 1 April 1998 (rapporteur: Mr
Muller).

At its 354th plenary session (meeting of 29 April 1998), the Economic and Social Committee
adopted the following opinion, with 117 votes in favour and two abstentions.

1. Preliminary observations

1.1.
The Commission’s communication deserves to
be given particular attention by the Committee for a
number of reasons: it deals with the competitiveness of
an important sector of the EU economy (1) characterized
by a high level of labour intensity and the presence of
an impressive number of small and medium-sized
enterprises (SMEs); it highlights multifarious aspects
relating to all stages of the construction process; finally,
it is submitted at a time when there is a clear need to
improve competitiveness throughout the EU, when
unemployment is the chief issue of concern, whenstructu-
ral changes have to be assessed and planned against the

(1) Key figures concerning the construction sector taken from
Chapter 2 of the Commission’s communication: it is the
largest industrial sector, accounting for 11 % of EU GDP;
it is the largest sector in terms of employment — employing
8,8 million persons which represents 7 % of the working
population; 26 million workers depend, directly or
indirectly, on the construction sector; ‘1=3’ i.e. one job
created in the construction sector indirectly generates two
extra jobs; the sector comprises 2 million enterprises, 97 %
of which have fewer than 20 workers and 94 % of which
have fewer than 10 workers.

background of the single market and a forthcoming
enlargement, and when there is thus an urgent need to
harness the full potential for dynamic economic, social
and technical change and progress.

1.2.
The Committee supports the Commission’s
decision to not just list the issues which need to be
reviewed and set out a broad range of possible courses
of action but make recommendations in respect of four
key objectives (2); these recommendations are to be
fleshed out with a view to being incorporated in an
action programme. In this context attention is drawn to
the importance of the appended lists of recommended
specific action linked to the goal of improving competi-
tiveness.

(2) The four key objectives are: to develop a coherent quality
policy; to improve the regulatory environment and the
general market framework; to promote a substantial,
lasting increase in the level and quality of education and
training in the construction sector; and to reorientate and
reinforce research and development in order to meet the
need for change.

10.7.98

EN

Official Journal of the European Communities

C 214/17

1.3.
The Committee draws attention to the consider-
able diversity, complexity and scale of the issues and
actions listed. The Committee recognizes the great
many correlations involved; these correlations are both
horizontal and vertical, actual and potential, interactive
and divergent. In view of these correlations, formulation
of a consistent action programme at EU level may appear
to be a difficult task. The Committee nevertheless
considers that a programme should be drawn up, and
calls upon the Council: a) to focus on fundamental
reference points in the light of the four key objectives
and the proposals already put forward, and b) to set out
guidelines for an action programme which is realistic,
provides motivation and is capable of being implemented
in stages at various levels of responsibility, with the aim
of enhancing national and EU cohesion.

1.4.
From this standpoint, and in view of the fact
that the Commission has widely consulted the economic
and social interest groups directly concerned, the Com-
mittee gives its general approval to the communication.
The observations set out below constitute, in particular,
signposts and directions which it would ask the Com-
mission to take into consideration in its subsequent
work, for which a timetable should be drawn up.

1.5.
In addition to its recommendations on the four
key objectives, the Committee would draw attention to
Chapter 4 of this opinion setting out the conclusions.
These conclusions are not exhaustive. They are
addressed to the Council and the Commission, with a
view to early establishment of the framework and
guidelines for the future action programme.

1.6.
The Commission takes care to define ‘the con-
struction sector’ (1) for the purposes of the communi-
cation. The definition implies that this sector directly
involves a considerable number and variety of occu-
pations and socio-economic groups. These groups are
therefore entitled to be appropriately consulted and
should take part in planning and implementing the
measures included in the action programme. This right

(1) The construction industry is considered in the broad
sense of the word, and includes housing, non-residential
buildings, civil engineering and industrial construction. In
addition, the whole supply chain needs to be taken into
account — from primary raw materials to complex
products and systems. Similarly, the construction process
includes all phases — from initial conception, through
feasibility studies, design, execution of the works, and
maintenance, to demolition (including recover and re-
cycling of materials, and waste disposal and incineration).

and obligation in no way detracts from the role, powers
and responsibilities of management and labour, or
their respective organizations, directly involved in the
everyday operation of the enterprises concerned.

2. Elements of competitiveness

2.1.
The communication’s description of competi-
tiveness factors and the associated problems highlights
the linkage between the various players in the construc-
tion process and between the sectoral policies pursued
by the EU and its Member States. The description also
highlights the case for ensuring fair application of the
subsidiarity principle, in the light of sectoral, national
and regional particularities. The description also pro-
vides useful indications as regards measures which can
or must be adjusted, strengthened, introduced or focused
with respect to the construction sector — and its back-up
bodies, the role of which should not be underestimated.

2.2.
There is no doubt that the factors which deter-
mine competitiveness — as identified in the Com-
mission’s communication — are a highly intricate mix.
The Communication describes these factors and analyses
them in linear form in ten sub-sections (4.1 to 4.10). The
Committee supports this approach. It also endorses the
Commission’s evaluation of the many different aspects
of these elements.

The Committee endorses the ten sub-sections to
2.3.
a very large extent; there is therefore no reason, at the
current stage of the Commission’s work on this matter,
to put forward additional comments. This stance is
further justified by the fact that the elements of competi-
tiveness and their actual or potential impact are further
dealt with in the section of the communication which
deals with key objectives, specific actions and recommen-
dations. The present opinion concentrates on this section
of the communication.

3. Recommendations; specific measures and proposals

for an action programme

The communication makes it clear that it is
3.1.
necessary and possible to draw up a well-structured,
forward action programme which specifies measures
and takes account of:

— measures already undertaken and their impact;

— the inter-actions — frequently not clearly perceived
— between policy on the construction sector and a
variety of EU, national, regional and local policies;

C 214/18

EN

Official Journal of the European Communities

10.7.98

— the wide range of remits, powers and capacities of

the public and private bodies involved;

— the scope for adjusting to (a) the market situation,
(b) market trends, and (c) the balance between
supply and demand;

— the need to be constantly seeking ways of combining
effective action with horizontal and vertical coordi-
nation and cooperation, which provide a new
impetus to the whole of the construction sector.

3.2.
The approach pursued by the Commission may
well seem ambitious given the complex nature of the
issues involved. Such a step is however vital in view of
the issues at stake. The Committee also believes that the
establishment of the four key objectives will make it
possible to achieve convergence between the various
aspects and to channel the action taken.

3.3.
The Committee is pleased to note that the
Commission has indicated its intention to draw up the
action programme (to be decided upon by the Council)
in collaboration with representatives of the construction
sector. The Committee takes the view that this process
will, of necessity, involve consulting representatives of
all the categories of enterprises concerned, including
SMEs, and representatives of the workforce. Advantage
should be taken of a number of traditional forms of
collaboration and consultation engaged in by many
small construction enterprises. The Committee, for its
part, wishes to be involved in the consultation procedure.

3.4. Once the fields of action have been identified, a
watching brief should be kept on measures taken and
their impact. Given the need for effective monitoring,
the proposed action programme should, from the outset,
spell out how consultation and cooperation is to operate
within the framework of existing decision-making struc-
tures. Appropriate machinery for coordinating policies
and action and for evaluating results is clearly a
prerequisite for an effective integrated action pro-
gramme.

primarily be carried out at national and sectoral level
— there is a need for an overall integrated approach to
this problem, embracing all the key objectives described
in the communication.

Against the background of the wide range of
3.5.2.
problems relating to competitiveness and the many
changes which will have to be made in respect of
structures, means, qualifications, resources, procedures
and mindsets, the Committee highlights the need to
ensure that there is a fair and constructive dialogue with
all the players in the construction sector — in particular,
the social partners — at both EU and national levels.
The Committee also firmly believes that improved forms
of dialogue, cooperation and consultation with all the
partners concerned will facilitate the formulation of new
ways ahead (relating to aspects such as qualifications,
quality, the construction process, codes of conduct,
coordination, investment, work organization).

3.6. First objective: Development of a coherent policy

on quality

3.6.1.
This objective, which is a guiding principle
of increased competitiveness, has a wide range of
components: precise description of project goals and
planning; procedures and planning stages; the establish-
ment of technical clauses and contractual rules; confor-
mity with specifications, estimates and deadlines; the
observance of standards and rules in respect of durability,
architecture, safety, public health, the environment,
aesthetic considerations, urban planning, etc. Attain-
ment of these quality elements hinges upon qualifi-
cations, know-how, expertise and experience in the
field of technology, finance, management, organization,
coordination, cooperation, culture and labour-market
aspects, relating,
inter alia, to working conditions,
job-stability and the utilization of the ability of the
individual.

3.5.
Before setting out its views on the four key
objectives and the proposed measures, the Committee
draws attention to the two general aspects described
below:

In its communication the Commission raises
3.5.1.
the issue of the image of the construction sector. The
Committee recognizes the shortcomings in this respect
and their damaging impact; it thus obviously supports
remedial measures. The Committee does however take
the view that, in addition to targeted measures such as
information and awareness campaigns — which should

3.6.2. Whilst it may be possible to define ‘quality’
and how it can be achieved, it may well be difficult to
ensure the coherence of this policy on quality. In the
Committee’s view the way to achieve a coherent policy
is to take account, when introducing the action pro-
gramme, of the various factors which have a bearing on
the other key objectives set out. These factors include:
the ways in which enterprises obtain their qualifications
and the scope for qualifications; conditions of access to
the profession; the recognition of employee qualifi-
cations; employment conditions; conditions in respect
of access to markets; the legal framework; the trans-
parency of contracts; possibilities as regards the pro-
vision of information and the transfer of technology;

10.7.98

EN

Official Journal of the European Communities

C 214/19

the ability to take account of customers’ expectations.
The Committee would refer here to the views set out in
its own-initiative opinion on sustainable development
in building and housing in Europe (1).

3.6.3. When considered from this broader standpoint,
the actions recommended in the appended quality table
do not, at this stage, require further observations by the
Committee.

their technical complexity, the resources of the tenderers;
progress on standards; the search for methods and
voluntary certification schemes for ensuring quality
which are both specifically applicable to the construction
sector and accessible to SMEs; improved knowledge in
the fields of technology and management; appropriate
use of information technologies and complementary
engineering processes; and measures to promote the
dissemination of these technologies.

It should, however, be pointed out that the
3.6.4.
broad, global concept of ‘quality’, embraces, in addition
to technical standards, a number of other aspects, such
as health, safety, energy, new technologies, new forms
and methods of construction, and the environment.
These aspects will challenge the powers of imagination
and innovation of enterprises and other players in the
construction process. Generally speaking, the elements
of competitiveness described in chapter 4 of the Com-
mission communication are also means of improving
quality. The example of worker qualifications, an aspect
which will be dealt with in point 3.8 below, may be
cited here as an example.

3.6.5.
The distinction drawn in point 4.1 of the
Commission communication between ‘production pro-
cess quality’ and ‘integrated management quality’ is
clearly important. It may be assumed, however, that, as
a general rule, one or other of these approaches or
systems will be applied in light of
the prevailing
circumstances, which frequently differ. It is nonetheless
essential to uphold and promote: the concept and
practice of dismantling barriers and achieving real
cooperation between the various parties involved in the
construction process; the establishment of particular
forms of integrated organization and management; and
the use of planning and coordination instruments and
bodies before and during the actual construction process.
It is essential to improve methods of coordination and
cooperation as this will make it possible to respect —
or even reduce — estimates, costs and completion
deadlines, whilst, at the same time, helping to enhance
the image of the construction sector.

3.6.6.
Be this as it may, the proposed action pro-
gramme must promote introduction of the legal and
contractual conditions required for the operation of the
selected system and must likewise support action to
increase awareness, provide information and ensure
consultation with the players involved.

3.6.7.
In the light of 4.1 and 4.4 of the Commission’s
communication, efforts should be made to encourage
research and development with regard to innovatory
ways of improving quality, taking account of specific
aspects, such as: the size of the structures to be built;

(1) OJ C 355, 21.11.1997.

3.6.8.
The concept of ‘quality’ of extends also to be
construction materials employed and the structure and
aesthetic value of the construction. The Committee has
addressed these aspects in earlier opinions.

3.7. Second objective: Improving the regulatory frame-

work and the general market framework

3.7.1.
Various subsections of the communication (4.6
— 4.2 — 4.3 — 4.10) and its annex (3 ‘For ensuring fair
competition’ and 4 ‘For modernizing the role of the
public authorities’) deal with the regulatory framework
and the general market framework and put forward
recommendations addressed mainly to the public auth-
orities. The list of specific actions under the heading
‘For modernizing the role of the public authorities’
undoubtedly deserves special attention. The Committee
generally endorses the proposals put forward at this
stage by the Commission.

3.7.2.
The Committee has tackled regulation and the
various types of obstacles and barriers (2) in its opinions
on the following subjects: standards procedures, con-
struction products, public contracts, recognition of
qualifications and, in particular, the various opinions it
has issued on the Single Market Observatory. In this
context the Committee has put forward proposals to
the Commission, the Member States and the economic
sectors concerned. The relevant issues need to be
reviewed, particularly from the angle of competitiveness,
an issue which is of vital importance to the development
of the EU.

3.7.3.
The Committee welcomes the desire expressed
by the Commission to avoid, in the legislative and
regulatory proposals which it submits, any provisions
which would serve to hold back productivity gains or
and competitiveness.

(2) See the ESC Opinions on: Technical standards and mutual
recognition (OJ C 212, 22.7.1996); Green Paper on public
procurement in the EU: exploring the way forward (OJ
C 287, 22.9.1997); Problems encountered by SMEs in
cross-border business relations, including conformity with
technical requirements (OJ C 206, 7.7.1997).

C 214/20

EN

Official Journal of the European Communities

10.7.98

3.7.4.
The Commission should also continue its
efforts to achieve coordination and cooperation between
its directorates-general concerned, thereby enabling it
to take effective measures in the field of competitiveness,
just as in other fields; such measures are expected by
industry and the public.

3.7.5.
It is recognized that the task of improving the
competitiveness of this sector is primarily to be assumed
by the production, service and consultancy firms which
have a direct part to play in the construction process;
from a general standpoint, however, responsibility has
to be accepted by all the players involved. As regards
regulations, however, the public authorities are clearly
directly involved. The Committee therefore urges the
Council of Ministers and the Commission to make the
following measure as one of the first to be included in
the action programme: the establishment, in respect of
specific national regulations and EU regulations, of
a list of possibilities for simplifying administrative
provisions drawn up in the light of the most frequent
complaints and of best practice. This list should also
highlight the lack of clarity and transparency in regu-
lations and contracts. It should bring about real improve-
ments.

3.7.6.
Efforts to increase productivity and competi-
tiveness can be hampered by administrative and legis-
lative rules laid down on grounds of the general interest,
safety, the environment or other basically justifiable
reasons, insofar as these rules fail to take adequate
account of the realities confronting enterprises of various
sizes working in a variety of fields.

3.7.7.
The Committee points out that subcontracting
problems do not solely affect small and medium-sized
construction enterprises. The Committee also recognizes
the need for an in-depth investigation of the subject of
cooperation with general contractors, the various forms
of public and private sector cooperation and the scope for
new systems involving joint-contracting. The Committee
would however highlight the importance and the urgent
nature of the measures which need to be taken if we
are to achieve situations and procedures that are
economically acceptable and to introduce generally-
applicable and legally-acceptable contractual provisions
in order to put a stop to practices which are especially
damaging to SMEs and persons working in SMEs. It
would therefore be advisable to lose no time in drawing
up an inventory of ‘best practice’ in the Member States,
insofar as this can be determined, and to take account
of this list when drawing up the action programme (e.g.
with regard to the technical, tax and labour-law liability
of general contractors).

3.7.8.
The call for an in-depth investigation also
applies to other areas which need to be addressed as a
matter of urgency, such as:

— the practice of submitting abnormally low tenders
and the harmful consequences of this practice;

— the various methods of qualitative and social

‘dumping’;

— failure to observe safety rules,

labour law and

standards in respect of working conditions;

— the need for all players to make payments on time;

— the approximation of provisions relating to the
duration of guarantees and insurance and liability
provisions, insofar as they may lead to distortions
in competition;

— best practice in respect of tax relief which have either
been introduced or which it is planned to introduce;

— measures taken by the construction sector, or within
the framework of various forms of partnership in
the fields of operational safety, energy saving and
environmental measures and rules;

— existing and planned provisions in respect of the
black economy, in the light of its economic, social,
financial fiscal, regulatory, competitive and technical
aspects.

The importance to the construction sector of
3.7.9.
public contracts is well known. The problems with
regard to the rules and procedures for public contracts
have been addressed in a number of opinions issued by
the Committee, in particular its opinion on the Green
Paper on public contracts (1). The Committee would like
to feel that account will be taken of these comments in
the proposed action programme on competitiveness.

The role played by public authorities in
3.7.10.
drawing up and implementing medium and long-term
investment plans/programmes is of vital importance.
These investment plans/programmes are a key instru-
ment for increasing the competitiveness of forward-
looking enterprises. In order to preclude problems, such
as over-equipment of enterprises in respect of a specific
contract, the investment plans must meet real needs and
be targeted at specific objectives (major infrastructure
— public buildings — housing — low-cost accommo-
dation). Implementation of these plans hinges upon two
conditions being met: firstly, financial reserves being set
up (including reserves established through public-private
partnerships) and used to promote the proposed goals;
and secondly, the authorities concerned having at their
disposal adequate technical and logistical resources and
a clear legal framework to enable the various stages of
the plans to be carried out at the right moment in time

(1) OJ C 287, 22.9.1997, p. 92.

10.7.98

EN

Official Journal of the European Communities

C 214/21

to achieve a balance between supply and demand and
promote employment, technological development and
structural adjustment. Attention should be drawn here to
the need to introduce for maintenance and conservation,
measures in respect of infrastructure, buildings and the
architectural heritage. This proposal
is particularly
important at a time when it may be difficult to finance
new investment because of budgetary constraints and
when there is an increasing need for genuine public-
private partnerships.

the construction sector.

The vital importance of the trans-European
3.7.11.
networks (TENs) to promoting competitiveness in the
EU has been highlighted and acknowledged on many
occasions at the various European summits, notably at
the recent special Summit on Employment (1). The
impact of the TENs on competitiveness goes beyond the
bounds of
In addition to
the jobs created directly and immediately during the
construction of TENs, the completion of these projects
will, in both the medium and long term, bring lasting
benefits in terms of jobs, as a result of the multiplier
effect in other sectors of the economy [1=3, i.e. every
job in the construction sector generates two further jobs
in related sectors — see the SECTEUR study quoted in
the Commission communication under review (2)].

The ESC therefore calls for action at all
levels to
speed up the implementation of the TENs and the
establishment of the attendant service centres, in accor-
dance, in particular, with the recommendations made
by EC Commissioner Kinnock’s High Level Group
and by means of the establishment of public-private
partnerships and better coordination of all the various
resources earmarked for infrastructure funding.

3.7.12.
The Committee supports the Commission’s
analysis as regards the internationalization of construc-
tion activities beyond the frontiers of the EU. The EU
construction sector faces very forceful competition,
particularly from Japanese and US construction groups
which include world leaders as regards size and engineer-
ing resources.

3.8. Third objective: Promoting a substantial and sus-
tained increase in the level and quality of education
and training in the construction sector

3.8.1.
This objective is closely linked to the key
‘quality’ objective. It may be regarded as serving as a
catalyst and providing a cornerstone for all the measures
designed to increase competitiveness.

3.8.2.
The substantial and lasting improvement in
training urged by the Commission’s communication will
require ongoing dialogue and cooperation between all
the players involved in the construction sector,
in
particular the social partners. Improvements will have
to be achieved at all levels, with a view to opening up
occupations and careers, enhancing the professional
conscience, cultural awareness, sense of responsibility
and spirit of initiative and innovation, and creating new
linkages and new modes of working involving horizontal
and vertical teams. Experience with joint industrial
bodies could serve as an example here.

3.8.3.
The ESC endorses the recommended actions
set out in the annex to the Commission’s communication.
These actions are in line with the provisions of various
EU programmes and initiatives based on the fundamental
ideas set out in the White Paper on Growth, competi-
tiveness and employment (1994), the White Paper on
Teaching and Learning — Towards the Learning Society
(1995) and various guidelines set out in respect of ongoing
training, work-linked training and apprenticeships. The
various opinions issued by the ESC in this field contain
a number of observations which could be useful if
considered in terms of the specific characteristics of the
construction sector and its various segments (3).

3.8.4. Well-planned education and training are of
course the means to achieve vocational skills, which in
turn are a vital guarantee for employment stability and
may facilitate the changes which have to be made to
accommodate new technology. Skills, backed up by
measures to enhance standards and ensure recognition
of qualifications, are prerequisites for quality and
productivity, which are themselves vital to competi-
tiveness which in turn makes it possible to improve the
working conditions and the social standing of all those
working in this highly labour-intensive sector.

3.8.5.
The Committee therefore urges that special
attention be focused on training and improving qualifi-
cations and skills in the construction sector when
guidelines are drawn up and concrete, coordinated
measures are planned as part of the proposed action
programme. It is very clear what is at stake here, namely
the future of the construction sector and that of millions
of jobs.

3.8.6.
The Commission’s recent work in the field of
training appears to demonstrate a preference for ‘sunrise

(1) See paragraphs 33 and 40 of the Summit Conclusions and
the Communication from the Commission on Community
policies in support of employment — COM(97) 611, p. 12.
(2) ‘Strategies for the European construction sector’ — the

SECTEUR study.

(3) See the ESC opinions on: the White Paper on Growth,
Competitiveness and Employment (OJ C 295, 22.10.1994);
the White Paper on Teaching and Learning: Towards the
Learning Society (OJ C 295, 7.10.1996); the Commission
Report on access to continuing education in the EU (OJ
C 19, 21.1.1998); the Commission Communication on
promoting apprenticeship in Europe (OJ C 95, 30.3.1998
— CES 110/98, 28.1.1998).

C 214/22

EN

Official Journal of the European Communities

10.7.98

sectors’. This attitude must not have a detrimental effect
on the efforts and investments in the construction sector
which appears, wrongly, to have been excluded from
the priority measures earmarked for the ‘sunrise sectors’,
which moreover, have not been properly defined. This
observation also applies to research by CEDEFOP into
training in the construction sector. Attention is drawn
in this context to the need to avoid duplication of studies
and analyses.

3.8.7.
At the risk of being criticized for being verbose,
the Committee wishes to draw attention to a number of
points, namely: the development of appropriate forms
of training for those working in the construction industry
would provide a powerful tool for promoting youth
employment; the spectrum of skills ranges from essen-
tially manual skills to high technology, management of
the whole construction process and financial manage-
ment, the production process in the construction sector
lends itself to the organization of tailor-made trainee
schemes; the range of qualifications in the construction
sector should encourage people to seek to obtain higher
qualifications and to give a new impetus to their careers;
and vocational qualifications should be improved, inter
alia, by introducing appropriate systems for providing
information, monitoring and guidance, involving not
only the social partners but also the parents of young
people and the teachers who would be called upon to
operate such systems as part of education programmes
designed to boost the recruitment of young people.
‘Building-industry information and training centres’
could help to improve the provision of information and
to put an end to a number of preconceived ideas which
are damaging the construction sector.

3.8.8.
In the specific-action tables which are appended
to the communication, actions in the field of ‘Education
and training’ are listed under the heading ‘For promoting
intangible investment’, alongside those in respect of
‘Technology’, ‘Employment conditions’, and ‘Other’.

In this context

3.8.9.
the Committee urges an
improved strategy for coherent incentives to intangible
investment and intellectual investment in general. The
policies designed to promote SMEs do indeed draw
attention to the importance of such investment. It is,
however, clear that investment with a view to promoting
know-how, the acquisition of experience, information
capacity, the fulfilment of labour-law commitments,
and further training and innovation in the fields of
management and organization generally fails to have
much impact in the following areas: the determination
of the criteria for implementing support and aid arrange-
ments; assessment of confidence and credit ratings; tax
provisions in respect of amortization; the procedures in
transfer of
the takeover of enterprises,
respect of

ownership, etc. Intangible investments should be as-
sessed carefully and in greater detail in order that they
may be taken into account in a number of fields, such
as employment, finance, tax, training and the use of
information technology networks to promote decentrali-
zed interactive training on a large scale.

In view of the fact that training is principally
3.8.10.
the responsibility of national, regional and local au-
thorities, the subsidiarity principle should apply. The
action programme will have to take account of this
principle in a constructive manner.

3.9. Fourth objective: Reorientating and reinforcing

research and development

3.9.1.
The Committee shares the Commission’s view
that this key objective is a vital factor in improving
competitiveness.

3.9.2.
This objective ties in with the various R&D
framework programmes on which the Committee has
issued opinions. The construction sector has a number
of distinctive features in respect of R&D, such as the
relatively small size of firms, the difficulty in carrying
out transfers of new technology in good time and
judiciously, and the local/regional operating level of
the sector which hampers the pursuit of an EU-level
approach to R&D.

3.9.3.
There is some doubt as to whether research
workers and those working in the construction sector
fully understand the importance of R&D in respect of
new technology. The Commission, too, frequently gives
priority to research into leading-edge technology in the
‘sunrise sectors’ to the detriment of research into
medium-level technologies in the ‘traditional sectors’.
Neither of these two fields must be neglected. We must
find the most effective procedures for all sectors which
have to increase their competitiveness.

The Committee is of the opinion that the fifth
3.9.4.
R&TD framework programme does take account of
the specific needs of the construction sector. The
Commission proposes a key action entitled ‘competitive
and sustainable growth: the city of tomorrow’. This
key action covers three areas, one of which is the
‘development and demonstration of technologies for
economic, clean, effective and sustainable recovery,
renovation and construction, in particular for large
groups of buildings and for the protection of the cultural
heritage’ (1) .

3.9.4.1.
The Committee highlights the importance to
the construction sector of this key action and urges that
this action receive the attention which it deserves. To
this end, this action should come under the third theme
of the fifth R&TD framework programme (promoting

(1) COM(97) 142 final of 30 April 1997.

10.7.98

EN

Official Journal of the European Communities

C 214/23

sustainable growth) rather than under the fourth theme
(energy, the environment and sustainable development).
Given the important contribution made by the construc-
tion sector to EU GDP (11 %), the share of EU funding
allocated to R&D projects in this sector (less than 5 %)
is inadequate.

There should be a better knowledge of the level
3.9.5.
of research being carried out in the construction sector
and the fields in which this research is being carried out
(industrial competitiveness, the environment, conser-
vation and renovation of buildings which form part of
the architectural heritage, employment, energy, etc.).
Very approximate estimates are available as to the level
and distribution of research across Europe. There is
therefore a need to draw up an inventory of this research
in the Member States and to classify it by category
(e.g. basic research, general research, research into
competitiveness, etc.) and according to the type of
enterprise concerned (enterprises which manufacture
construction products, construction enterprises, offices
providing advisory services, public research bodies,
universities, etc.). There is also a need to devise methods
for assessing the effectiveness of the research, and its
impact on the competitiveness of the sector, improve-
ments in sustainable design and construction and
increases in productivity.

3.9.6.
This approach would enable the construction
industry to exploit its research strengths and take
account of its weaknesses, to identify the key policies
more effectively and to promote the introduction of
appropriate measures. There would appear to be no
shortage of research fields which are both interesting
and beneficial (e.g. the protection of buildings against
various forms of nuisance).

3.9.7.
The abovementioned points give rise to a
number of observations, one of which is rightly made
by the Commission. The observation in question is the
perceived shortcomings in research on the construction
process and forms of management and organization;
these shortcomings were referred to in other points in
this opinion, namely the point dealing with ‘quality’.

3.9.8. Most research activities are directed to prod-
ucts, and to a lesser extent, technologies, whereas the
construction process is the main focus of concern of all
enterprises seeking to increase their competitiveness.

3.9.9.
The success of the building operation (quality,
price, deadlines, making best use of human resources
and environmental and safety considerations) essentially
depends upon the forms of coordination between the
different parties involved; contracting bodies and clients,
architects, consulting engineers, manufacturers of con-
struction materials, construction firms by separate or
grouped trades, general contractors and subcontractors.
Although the EU’s R&D framework programmes cannot
resolve all the problems which arise in this field, there
are nonetheless some research projects on optimum
efficiency in the construction process which deserve to
be examined with a view to their implementation at EU

level, such as the research projects relating to the
application of new information and communication
technologies.

3.9.10.
Parts of the construction industry are highly
innovatory and there is increasing research into inno-
vation. Nevertheless, the fragmentary and conservative
nature of the industry means that major effort is called
for in the following fields: dissemination of information,
transfer of technology, introduction of codes of practice,
cooperation between research institutes and enterprises,
incentives for new techniques and innovatory pro-
cedures.

In addition to the possibilities specified in
3.9.11.
the R&D framework programme, in particular those
relating to SMEs, the Committee endorses the specific
actions listed in the annex to the Commission communi-
cation. All these considerations highlight the need to
coordinate actions and methods and the need for
responsibilities to be clearly defined in a field in which
the EU, the Member States and the construction sector
all have a role to play.

4. Conclusions

4.1.
The comments, guidelines and proposals set out
above should be seen in the context of a forthcoming
decision by the Council on an action programme for the
construction sector. The Committee looks forward to a
constructive decision by the Council and draws attention
to the following points:

4.2. With regard to the nature and implementation
of the action programme, the Committee:

4.2.1.
endorses and supports the course of action
pursued by the Commission. As a representative body
at EU level for the economic and social interest groups
directly and indirectly concerned, the Committee will
seek to be closely involved in the consultation process
of the action programme;

highlights the urgent need to set out a frame-
4.2.2.
work and guidelines for the implementation of this
programme at EU, Member State level and company
level;

4.2.3.
points to the urgent need for concrete action
to prepare and facilitate EU enlargement and to give
effect to the conclusions of the Luxembourg Employment
Summit of 20 and 21 November 1997, including those
in respect of new forms of intervention by the EIB;

C 214/24

EN

Official Journal of the European Communities

10.7.98

4.2.4.
stresses that the four key objectives will prompt
action by the parties involved, namely: public and
private clients commissioning building work, the persons
responsible for overseeing the work (engineers, archi-
tects, advisors and coordinators), building entrepreneurs
and their workforces;

4.3.2.
considers that it would be beneficial to draw
up a systematic inventory of best practice in the various
fields referred to in the present opinion; this would
facilitate problem-solving and making it unnecessary to
carry out expensive studies and analyses which are
expensive and frequently duplicate previous work;

points out that the action programme should
4.2.5.
aim to achieve a high level of horizontal and vertical
integration, given the linkages between EU sectoral
policies and the operation and responsibility of players
in the construction sector;

4.2.6.
believes that the action programme should
be based on a timetable for the various levels of
decision-making and action, and on constructive,
dynamic application of the subsidiarity principle;

urges that

4.2.7.
the action programme include
machinery based on consultation and cooperation,
for assessing the implementation of the programme,
facilitating the regular exchange of experience and
carrying out the appropriate adjustments;

4.2.8.
highlights the vital role played by labour
interest
management and the economic and social
groups concerned in the effective implementation of the
proposed measures;

4.2.9.
banks which provide a basis for realistic decisions.

calls for compilation and updating of data

As regards the measures to be included in the

4.3.
action programme, the Committee:

4.3.1.
avenues opened up by the key objectives;

urges that, initially, such measures pursue the

Brussels, 29 April 1998.

4.3.3.
underlines the importance, in the context of
the key objectives, of a number of areas and measures,
such as those set out below:
— suitable training schemes at all levels;
— improvements in the image projected by the construc-
and work-
tion sector, working
organization, and safety and health-protection
measures in respect of construction sites;

conditions

— improvements in the management and organization

of the construction process;

— the establishment of a list of the R&D fields covered
at present and which should be covered in future;
— the transfer and application of new technologies
through close links between enterprises and research
bodies;

— encouraging new forms of cooperation which can
offset the inherent weaknesses of small enterprises;
— the establishment of more transparent policies and
rules in respect of public procurement and the
procedures for awarding contracts;

— the removal of hindrances to increased competi-
tiveness and further work on issues raised in section
3 above, and in particular 3.7.8;

— the promotion of intangible investments, particularly
in the management of human resources and the
exploitation of new data in the fields of safety, the
environment, energy and finance;

— consistent implementation of effective medium and
long-term investment plans, and the identification
of suitable forms of public-private partnership.

The President

of the Economic and Social Committee

Tom JENKINS