How Sweden can make things easier for foreign construction companies

Complicated contracts, complex building and work environment rules, and documents only available in Swedish. Construction companies wishing to enter the Swedish market face many challenges. This is underlined by a report from the Swedish Association of Public Housing Companies (SABO), a Swedish industry and interest organisation.

Sweden has a severe shortage of homes and the highest construction prices in the EU, a difficult situation that could be improved if we increase competition in the construction sector. SABO, which brings together the public municipal housing companies in Sweden, has presented a report today where construction companies from other countries give us advice about how their establishment in Sweden could be made easier and where SABO highlights proposed measures.

“We need to attract more and better tenders to increase housing construction by the public municipal housing companies. Competition must increase and prices be pushed down. One way is to make it easier for foreign companies to take on contracts in Sweden. With their experience behind them, I see several measures that we should commit to,” explains Jonas Högset, officer responsible for new construction at SABO.

It emerges from the report that the construction companies consider Swedish bureaucracy to be complicated and they would like an overview of readily accessible information. They also want the Nordic governments to work to establish common building regulations. SABO and the public housing companies are asking for tender documents, other documentation and correspondence to be in English. They also want contract works to be split so that companies without the capacity to take on a turn-key contract can participate.

“For example, it should be possible for our member companies to accept English-speaking site managers and foremen. We will do what we can to remove trade barriers, increase the number of tenders and protect Swedish labour market rules. I am convinced that it should be possible to combine these and achieve a successful conclusion,” comments Jonas Högset.

SABO also proposes that the Swedish Government provides information and formulates checklists and guides in English about the rules, regulations and market conditions in Sweden, specially adapted for stakeholders in the construction industry.

“This information must be targeted at and adapted to various industries and combined on the web portal that the Swedish Government is planning for foreign contractors to ensure that the information is as usable as possible. We consider that the National Board of Trade should assume responsibility for this,” says Jonas Högset.

Opinions of some of the foreign builders in the report:

“We would prefer to have better access to information in English about the rules in Sweden relating to staff issues, unions, pay levels and access to Swedish building regulations.”

“We would need help locally in finding different skills such as, for example, scaffolders or crane drivers. The SABO companies could produce a list of companies with which to work.”

SABO arranged a breakfast hearing for the report on 7 December with the Swedish Competition Authority, a Government representative from the Ministry of Enterprise and Innovation, the Swedish Building Workers' Union, the Swedish Transport Administration, the Swedish Construction Federation (industry and employer organisation), Fredrik Karlsson (author of the report) and SABO . A film from the seminar can be viewed on www.sabo.se.

Attached:

The report Making it easier for foreign construction companies in Sweden, by Fredrik Karlsson, journalist, with comments by SABO

Photo of Jonas Högset, SABO.

Contact:

• Jonas Högset, officer responsible for new construction, SABO: +46 (0)72-742 45 46
• One of the interviewees from an Estonian construction company:
  Indrek Rehme, Kodumaja AS: Tel: +372 52 00 067, indrek@kodumaja.ee
• One of the interviewees from the report on the procurer side:
  Anna Nordén, Framtiden Byggutveckling: +46 (0)730-33 33 91
• Charlotta Lundström, Press Officer, SABO: +46 (0)70-721 20 11

Boilerplate:

Approximately 300 public municipal housing companies in Sweden are members of the Swedish Association of Public Housing Companies (SABO). Member companies jointly own and manage 802,000 dwellings. They are important actors in the Swedish housing and labour market, both locally and nationally.