Public procurement: EBC highlight priorities in first dedicated hearing for EU social partners with European Commission

On 23 April, EBC Secretary General Fernando Sigchos Jiménez took part in a dedicated consultation session between EU social partners and the European Commission to discuss the ongoing revision of the EU public procurement directives. The meeting, jointly hosted by DG GROW and DG EMPL, brought together employers’ organisations and trade unions for a full day of exchanges, culminating in a dialogue with Commission officials, including Director Nathalie Berger and Head of Unit Jean-Yves Muylle.

EBC contributed to the employers’ input by sharing initial suggestions on how procurement rules could better reflect the reality of the construction sector. Stressing that 99% of construction enterprises are SMEs—of which 94% are micro-companies, our Secretary General underlined the essential contribution of small construction businesses to local economies.

Despite progress made under Directive 2014/24/EU, construction SMEs still encounter persistent obstacles in accessing public contracts. These include procedural complexity, the scale of tenders, and limited mechanisms to protect smaller players, particularly during periods of economic disruption. Referencing findings from the European Court of Auditors, EBC highlighted a concerning rise in single-bidding in construction, doubling from 7% to 14% between 2011 and 2021, while the share of contracts awarded without a call for bids remains high. These trends reflect the daily reality for SMEs: burdensome procedures, disproportionate contract sizes, and inadequate safeguards against exclusion.

Initial suggestions from Construction SMEs and craft trades

During the session, participants addressed the need for pragmatic simplification, issues related to low-cost and abnormally low tenders, the enforcement gap in the current directive, the relevance of the EU preference concept, the role of collective agreements, the potential of variant bids, and challenges linked to unfair international competition.

EBC offered additional concrete preliminary ideas based on members’ practical experiences:

• Dividing contracts into lots should be further encouraged or made more systematic, to enable SMEs to bid for portions aligned with their size and expertise;
• Article 71(3) on direct payment to subcontractors remains vital for the financial stability of SMEs, particularly in layered project chains.
• Horizontal cooperation models, such as consortia and co-contracting among SMEs, should be better recognised and facilitated. This is particularly important in renovation and energy-efficiency markets. These arrangements could also help limit vertical, opaque subcontracting chains.

On subcontracting, EBC recalled proposals developed in its recent position paper “Limiting the subcontracting chain: Preventing social dumping and unfair competition in Europe’s construction sector” (2024), including:

• Examining the need and usefulness of introducing EU-wide limitations in multiple-layer subcontracting;
• Banning purely financial subcontracting, where contractors pass on the entire workload;
• Requiring main contractors to perform part of the works themselves, ensuring genuine capacity;
• Implementing SME-safeguards such as: A cap on subcontracted value; a list of tasks prohibited from subcontracting; mandatory subcontractor disclosure; and encouraging pre-contractual arrangements to ensure fair terms for SMEs.

Flexibility and resilience in times of crisis

A key reflection from EBC focused on the lack of contractual flexibility exposed during the Covid-19 pandemic and the war in Ukraine. SMEs locked into fixed-price contracts were left vulnerable to price surges and supply chain disruptions, jeopardizing both project delivery and business continuity.

To enhance resilience, EBC encouraged exploring flexibility clauses—such as price revision mechanisms and force majeure provisions—to safeguard both companies and the public interest in times of major disruption.

EBC also stressed the importance of targeted simplification for micro-enterprises, and suggested that green and social criteria be applied as execution conditions rather than award criteria, to ensure proportionality and access for SMEs.

Looking ahead

As the Commission progresses with the revision of the directives, this first consultation marked a valuable opportunity for EBC to present SME-oriented perspectives. While not exhaustive, the exchange helped to identify areas for improvement that could strengthen SME access, support fair competition, and ensure the effective delivery of public works.

The Commission acknowledged the contributions of all social partners and committed to maintaining an open dialogue throughout the process. EBC looks forward to continuing its engagement in this revision, contributing to a balanced, inclusive, and workable procurement framework that supports Europe’s construction SMEs.