Works

Works, in the context of EU public procurement, refers to building and civil engineering activities listed in Annex II to Directive 2014/24/EU, which corresponds to Division 45 of the NACE (Nomenclature statistique des activites economiques dans la Communaute europeenne) classification. These activities constitute one of the three main categories of public contract objects — works, supplies, and services — and are subject to a higher EU threshold (EUR 5,538,000) than supplies or services, reflecting the typically large scale and inherently local character of construction projects. The term "works" encompasses the full spectrum of building and civil engineering activities, from site preparation and foundation laying through to building completion and finishing.

How It Works

The concept of "works" in EU procurement law serves two distinct but related purposes:

1. Classification of activities. "Works" identifies the types of activities that fall under works contracts, determining which procurement rules and thresholds apply. Annex II to the directive lists the activities by reference to the NACE classification:

• Site preparation (NACE 45.1): Demolition, wrecking, earth moving, test drilling, site clearance, excavation, blasting. These preparatory activities create the foundation for subsequent construction.

• Building of complete constructions or parts thereof; civil engineering (NACE 45.2): This is the core of construction activity, encompassing:

  • Building construction (residential, commercial, industrial, institutional)
  • Civil engineering structures (roads, highways, bridges, tunnels, railways, airport runways, harbors, waterways, dams, locks)
  • Roofing and frame erection
  • Construction of outdoor sports facilities, chimneys, and industrial plants

• Building installation (NACE 45.3): Installation of all building services systems:

  • Electrical installation (wiring, lighting, fire alarm, telecommunications)
  • Insulation work (thermal, sound, vibration)
  • Plumbing and sanitary installation
  • Heating, ventilation, and air conditioning (HVAC)
  • Gas fitting
  • Lift and escalator installation

• Building completion (NACE 45.4): Finishing work that completes the building interior and exterior:

  • Plastering and rendering
  • Joinery and carpentry installation
  • Floor and wall covering (tiling, flooring)
  • Painting and decorating
  • Glazing

• Rental of construction equipment with operator (NACE 45.5): The hire of construction or demolition equipment together with the operator.

2. Distinction from "a work." The directive draws a critical distinction between "works" (the activities described above) and "a work" (the outcome of building or civil engineering works taken as a whole which is sufficient in itself to fulfill an economic or technical function). A "work" is the complete functional result: a usable building, an operational bridge, a functional water treatment plant. This distinction matters for several reasons:

• Value calculation: When a contracting authority procures "a work" (a complete functional result), the estimated value must include all related contracts needed to achieve that result, even if they are awarded separately. This prevents artificial splitting of a single project into multiple smaller contracts to stay below the EU threshold.

• Lot considerations: If a contracting authority divides "a work" into lots, the aggregate value of all lots determines whether the EU threshold is crossed (Article 5(8) of the directive).

CPV classification of works. Works are classified under CPV Division 45 (Construction work), with codes ranging from 45000000 to 45999999. Major CPV groups include:

In procurement notices published on TED, the main nature of the contract is encoded as BT-23 (Main Nature) = "works" and the additional classification through BT-262 (Main Nature Additional) and CPV codes. These codes enable economic operators to filter and identify relevant construction opportunities.

Legal Framework

Annex II to Directive 2014/24/EU defines the activities constituting "works" by reference to NACE Rev. 2, Division 45 (Construction). This annex is legally binding and determines the scope of the works contract category.

Article 2(1)(7) defines "work" (as opposed to "works") as "the outcome of building or civil engineering works taken as a whole which is sufficient in itself to fulfil an economic or technical function."

Article 2(1)(6) defines "public works contract" by reference to both concepts: a contract for the execution of works (the activities) or the realization of a work (the functional result).

Article 4(a) sets the works threshold at EUR 5,538,000 for 2024-2025. This threshold is reviewed every two years and adjusted based on exchange rate movements under the WTO GPA.

Article 5(8) provides the special valuation rule for works: "For the purposes of calculating the estimated value of a public works contract, account shall be taken not only of the value of the works but also of the estimated total value of the supplies and services that are needed for executing the works and that are made available to the contractor by the contracting authority." This prevents artificial undervaluation by excluding materials supplied by the authority.

Recital 9 of the directive clarifies the "work" concept: "The notion of a 'work' covers the outcome of building or civil engineering works taken as a whole that is sufficient in itself to fulfil an economic or technical function. It should be irrelevant whether the work corresponds to one or more contracts."

The Utilities Directive (2014/25/EU) applies the same definition of works to utilities procurement, with the same EUR 5,538,000 threshold.

National building and construction regulations complement the EU procurement rules:

• Germany: The VOB (Vergabe- und Vertragsordnung fur Bauleistungen) provides the comprehensive framework for works procurement and contract performance, including the VOB/A (procurement rules), VOB/B (contract terms), and VOB/C (technical specifications based on DIN standards).
• France: The Code de la commande publique, supplemented by the CCAG-Travaux (standard contract conditions for public works) and the DTU (Documents Techniques Unifies) for technical standards.
• Netherlands: The RAW systematiek (standard work descriptions for civil engineering) and the UAV/UAV-GC (standard administrative conditions for works contracts).

Practical Examples

Example 1: Highway Bridge Rehabilitation. A national roads authority procures the rehabilitation of a 400-meter highway bridge, including structural reinforcement, deck waterproofing replacement, expansion joint renewal, and bridge bearing replacement. The contract is classified as works under CPV 45221119 (Bridge renewal work). The estimated value is EUR 8 million. The activities span NACE 45.2 (civil engineering) and 45.3 (installation work). As the value exceeds EUR 5,538,000, the full EU directive procedures apply.

Example 2: Electrical Installation as a Separate Works Lot. A hospital constructs a new outpatient wing. The main construction contract (EUR 25 million) is divided into lots. Lot 3 covers electrical installation work (CPV 45310000) valued at EUR 2.8 million. Although the lot value is below the works threshold, the aggregate value of the "work" (the complete outpatient wing, EUR 25 million+) exceeds the threshold. Under Article 5(8), the lot value is counted toward the total. However, under Article 5(10), the lot may be exempted from EU procedures if its value is below EUR 1 million and the total of exempted lots does not exceed 20% of the aggregate value.

Example 3: Mixed Contract — Works and Services. A municipality procures the renovation and energy management of a public building. The contract includes: building insulation and window replacement (works, EUR 600,000), HVAC system upgrade (works, EUR 400,000), and ongoing energy management services for 5 years (services, EUR 300,000). The works element (EUR 1 million) exceeds the services element (EUR 300,000), so the contract is classified as a works contract. The classification determines which threshold (works: EUR 5,538,000) and which procedural rules apply.

Key Considerations for Suppliers

Understand the CPV code structure for works. CPV Division 45 is extensive, with hundreds of individual codes covering every type of construction activity. Ensure your monitoring is set up to capture all relevant codes for your specialization. For example, an electrical contractor should monitor not just 45310000 (Electrical installation work) but also related codes such as 45315000 (Electrical installation work of heating and other electrical building-equipment), 45316000 (Installation work of illumination and signalling systems), and 45317000 (Other electrical installation work).

Know the Annex II activities relevant to your business. The classification of an activity as "works" determines which procurement rules apply. If you provide a service that is closely related to construction but does not fall within Annex II (e.g., architectural design, quantity surveying, construction project management), the service contract threshold and rules apply instead. Understanding the boundary between works and construction-related services helps you identify which procurements you should target.

Prepare for health and safety requirements. Works procurement invariably includes health and safety requirements as part of selection criteria and contract conditions. Maintain current certifications (ISO 45001, national safety management systems), up-to-date accident records, and evidence of safety training programmes. Poor safety records can be a discretionary exclusion ground under Article 57(4)(c) of the directive.

Build capacity for larger projects through joint ventures. The high works threshold (EUR 5,538,000) means that many of the largest, most visible works procurements require substantial financial and technical capacity. If your firm is too small to qualify alone, consider joint ventures or consortium arrangements with complementary firms. The directive permits groups of economic operators to submit joint tenders (Article 19(2)).

Track the works procurement pipeline. Works contracts often have long planning cycles. Major infrastructure projects are announced through national investment plans, prior information notices, and political decisions months or years before the formal procurement begins. Monitoring these early signals gives you time to prepare, build partnerships, and position your capabilities with the contracting authority.

Related Concepts

• Works Contract — The contract type that has works as its object, subject to the EUR 5,538,000 threshold.
• CPV — The classification system used to identify specific types of works under Division 45.
• Public Contract — The general concept of which works contracts are one of three types.
• Lot — Works contracts are frequently divided into geographic or trade-based lots.
• EU Threshold — The EUR 5,538,000 works threshold is the highest of the three contract type thresholds.
• Subcontracting — Particularly prevalent in works, where specialist trades are typically subcontracted.

Frequently Asked Questions

What is the difference between "works" and "a work"?

"Works" refers to individual building or civil engineering activities (construction, installation, completion) as listed in Annex II to Directive 2014/24/EU. "A work" refers to the complete functional outcome — a building, bridge, or plant that is sufficient in itself to fulfill an economic or technical function. The distinction matters for value estimation: when calculating whether the EU threshold is met, the contracting authority must consider the total value of "a work" (the complete project) rather than individual "works" contracts. For example, if a hospital construction project is divided into separate contracts for structural works, electrical works, and mechanical works, the total value of all contracts constitutes "a work" and must be aggregated for threshold purposes.

Can the same activity be classified as works in one contract and services in another?

The classification depends on the primary object of the contract, not the individual activity. A plumber installing pipes in a new building performs "works" (building installation, NACE 45.3). The same plumber providing an emergency repair service under a call-off framework for an existing building portfolio may be performing a "service" (maintenance services). The contract's primary object and the overall context determine the classification. When in doubt, contracting authorities should classify by the element with the highest estimated value.

Why do works have a higher threshold than supplies and services?

The higher threshold reflects two realities: first, construction projects are inherently local — physical presence at the site, knowledge of local building codes, and proximity for material delivery are essential, meaning cross-border competition is naturally limited for smaller projects. Second, construction projects typically have higher absolute values than supply or service contracts of comparable scope. The higher threshold ensures that EU procurement rules are applied only where the contract is large enough to attract genuine cross-border interest and where the administrative cost of EU procedures is proportionate to the contract value.