Study: Simplification and mutual recognition in the construction sector under the Services Directive

The study referred to the construction of a one-floor 2 bedroom house and a 10-floor office building as case-studies. It did not refer to:

• public works
• requirements regulating professions
• land-use, spatial planning and zoning controls
• rules on the use of building materials and waste management
• requirements regarding the employment relationship of workers, including the posting of workers
• rules pertaining to the use of building once completed.

The key objectives of the study were:

• To identify, by a legal analysis, to which extent Member States make full use of simplification as required under the Services Directive for the benefit of cross-border construction service providers.
• To clarify how Member States apply the mutual recognition principle to service providers coming from another Member State.
• To explore the possible role of voluntary certification for mutual recognition.
• To conduct interviews with stakeholders to clarify what the situation is on the ground.

The main findings of the study were:

• 6 out of the 14 selected Member States impose so-called 'horizontal authorisation schemes' controlling access to the market, varying greatly in conditions imposed, and in most cases applicable without regard for the cross-border element of service provision.
• In the context of those horizontal schemes but also in relation to building permits, common to all Member States, the study found a frequent duplication of a priori controls, a major lack of mutual recognition of equivalent requirements previously complied with, significant administrative burden, and equally restrictive controls and conditions for temporary cross-border provisions as compared to establishment cases.
• Voluntary certification schemes are largely inoperable in enhancing mutual recognition given the complexity and diversity of national standards
• Stakeholders emphasized the lack of available and user-friendly information on applicable requirements and the complexity of such requirements as major obstacles to cross-border operations.

General recommendations are:

• Horizontal authorisation schemes should be rare, and when they do exist, should result in simplified building permits.
• Mutual recognition and self-certification should also operate to limit controls, particularly building permits, to a minimum, with extensive use of tacit approval or even mere prior notifications.
• Simpler document requirements, full electronic procedures and comprehensive and user-friendly information should be put in place.