Public Procurement and Foreign Contractors in Sweden

Abstract: In recent years the Swedish construction sector has enjoyed a literal building boom. This is the culmination of a growing population and lack of housing, construction is at its highest level in decades. Swedish contractors are simply not meeting the demand and numerous analysts have warned against the consequences of a crash in the construction sector. Industry interest organizations have suggested that the solution to this lack of capacity could be to draw help from contractors elsewhere in Europe. Despite the favorable market in Sweden at the moment there is a noticeable lack of foreign contractors placing bids on public tenders. This thesis examines the situation regarding public tenders and foreign contractors with the help of a qualitative study and series of interviews. Four interviews were conducted with industry professional with experience of procuring foreign contractors. It was made clear throughout the course of the study that the need for foreign contractors is obvious to industry members and policymakers alike. Efforts are being made to help facilitate the arrival of foreign contractors into the Swedish construction sector, efforts such as increased education and translating construction regulations, however these efforts are simply not sufficient. Regarding public tender administration even less is being done. In the conclusion it is stated that policymakers for public procurement are too slow to react to the changing situation and are doing the bare minimum to fulfill European Union regulations for tendering. Should Sweden wish to avoid a lack of bids crippling the construction sector then serious steps need to be taken to accommodate foreign bidding, the thesis concludes with comments on the current state of affairs and suggested solutions moving forward. The current situation for foreign contractors is not expected to improve drastically going forward.