# Commission Implementing Regulation (EU) 2020/1197 of 30 July 2020 laying down technical specifications and arrangements pursuant to Regulation (EU) 2019/2152 of the European Parliament and of the Council on European business statistics repealing 10 legal acts in the field of business statistics (Text with EEA relevance), Division 5: Construction

Extent: E+W+S+N.I.

Construction covers the creation, management, renovation, repair or extension of fixed assets in the form of buildings, land improvements of an engineering nature and other constructions such as roads, bridges and dams. It also includes related installation and assembly work, site preparation and general construction as well as specialized services such as painting, plumbing and demolition.
Construction is valued on a gross basis, that is, inclusive of all goods and services used as inputs to the work, other costs of production and the operating surplus that accrues to the owners of the construction enterprise. This valuation principle is the same as that which applies in the valuation of all production (of both goods and services), as described in the 2008 SNA.
When a construction company provides its services abroad through a physical presence over a long term period (more than 12 months) but without creating a legal entity in the country of the client, and if the operations are substantial enough, then the compiler may need to consider that a notional institutional unit needs to be considered from a statistical point of view. In this case, the corresponding international transactions will not be considered as trade in services (such transactions will be recorded as foreign direct investment financial flows, income and position, and the data corresponding to its operations should be considered as FATS). If the above conditions are not met, the international transactions will be considered trade in services between residents and non-residents.

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Source: https://www.legislation.gov.uk/eur/2020/1197/annex/VI/section/2/division/II/division/2/division/5 (the official version)
Page: https://openlegislation.uk/eu-regulation-2020-1197/annex-VI/section-2/division-II/division-2/division-5
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.