Partner London
"The European Commission is advancing a series of initiatives to strengthen the Single Market, focussing on construction services, planning and infrastructure."
The European Commission is advancing a series of initiatives to strengthen the Single Market, focussing on construction services, planning and infrastructure. At the centre of these initiatives, the proposed Construction Services Act (“CSA”) has been designed to align rules and reduce fragmentation across member states. This article outlines what the CSA is, the EU’s broader strategy, the impact assessment process and implications for the UK.
What is the CSA?
The CSA is an upcoming EU legislative initiative designed to streamline construction service regulations within the Single Market. Its core objectives include:
- reducing fragmentation caused by diverging national rules;
- facilitating cross-border trade in construction services; and
- supporting green and digital transitions in the sector.
The European Commission launched a call for evidence on 10 November 2025, inviting feedback until December 2025. The call for evidence is an early-stage consultation where the Commission seeks input from stakeholders before drafting legislation. It will help shape the scope of the initiative, identify barriers and ensure proposals are evidence-based and practical.
A legislative proposal is expected in Q4 2026.
Key features of the EU strategy
The Commission’s 2025 Single Market Strategy (the “Strategy”) signals a major regulatory shift that will influence UK contractors operating in or alongside EU markets. Although the UK is outside the EU, many UK infrastructure projects rely on cross-border supply chains and standards aligned with EU norms.
The Strategy prioritises simplification of public procurement rules, harmonisation of sustainability criteria and digitalisation of compliance processes. For construction, this means streamlined tendering procedures, reduced administrative burdens and greater emphasis on low-carbon materials and circularity.
These changes will shape procurement frameworks and technical specifications across Europe, indirectly affecting UK contractors bidding for EU-funded projects or sourcing materials from EU suppliers. The proposed CSA and initiatives to simplify permitting and planning procedures aim to accelerate housing and infrastructure delivery, creating opportunities for firms that can demonstrate compliance with harmonised standards and sustainability benchmarks.
The Strategy focusses on removing barriers and simplifying rules. The CSA is part of the Strategy, which also includes:
- the EU Delivery Act – targeting planning and permitting processes;
- European Data Space for Public Procurement – integrating national portals and using AI-driven analytics to improve transparency and tender access for SMEs; and
- the 2026 Work Programme – under the theme “Europe’s Independence Moment” prioritises competitiveness, clean and digital innovation and simplification of EU laws. The CSA is included as a new legislative initiative and is supported as part of a €2tn Multiannual Financial Framework for 2028–2034.
Impact Assessment: what is being considered?
The impact assessment for the CSA aims to gather evidence to inform its design. It focusses on barriers to cross-border construction services, measures to reduce fragmentation and economic, social and environmental impacts. Key questions include how to harmonise standards without overburdening small-medium sized businesses, the role of digital tools and sustainability and ways to ensure fair competition and innovation.
Implications for UK business
"While the UK is outside the EU, these developments have implications for UK businesses and policymakers, particularly in construction and infrastructure sectors."
The CSA and related EU initiatives represent a significant step toward a more integrated and competitive Single Market for construction services. While the UK is outside the EU, these developments have implications for UK businesses and policymakers, particularly in construction and infrastructure sectors. For businesses, early engagement is key – whether through responding to consultations or preparing for compliance. UK firms bidding for EU tenders will need to comply with new harmonised rules. The EU procurement data space may offer opportunities, but regulatory divergence could increase complexity for cross-border operations. UK policymakers and businesses should monitor these trends closely, as EU trends in sustainability and digitalisation may influence UK infrastructure and planning sectors.
The Strategy introduces a transformative agenda that will ripple through the UK construction and infrastructure sector, especially for firms engaged in EU supply chains or bidding for European projects. Its focus on dismantling the so-called ‘Terrible Ten’ barriers – including fragmented procurement rules, complex business establishment processes and restrictive services regulation – will create a more predictable and harmonised environment for cross-border operations. For construction, the proposed CSA and simplification of permitting procedures aim to accelerate housing and infrastructure delivery across Europe. These measures, combined with harmonised sustainability criteria and digital compliance tools, will influence procurement frameworks and technical standards, requiring UK contractors to align with EU norms on low-carbon materials, circularity and digital documentation to remain competitive.
For UK contractors, the Strategy signals a shift toward digital-first compliance within the EU, sustainability-driven procurement and streamlined cross-border service provision. In 2026, the EU plans to roll out the Digital Product Passport (“DPP”), mandatory e-invoicing and interoperable digital identity systems, which will set new benchmarks for transparency and traceability. For UK policymakers, these developments highlight the need to maintain interoperability and competitive alignment to avoid falling behind European norms.
For UK contractors, the priority is clear: anticipate regulatory trends and embedded sustainability and digitalisation into operations. Investing early in BIM integration for public procurement, adoption of digital compliance platforms and prepare for harmonised green procurement standards.
Additionally, the EU Strategy’s emphasis on professional mobility and recognition of qualifications offers opportunities for UK firms to leverage skilled labour through EU partnerships, strengthening competitiveness in a rapidly evolving infrastructure market. UK contractors can position themselves as preferred partners in Europe’s evolving infrastructure market and mitigate risks from global supply chain volatility.
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