The construction industry in Norway - Versli Lietuva

MARKET INTELLIGENCE
SECTOR-BASED FACT SHEET
THE CONSTRUCTION INDUSTRY IN
NORWAY
PROJECT RESULT REPORT
2012
Contacts
Martins Tiknuss
Tel.: +371 2667 7811
@: martins.tiknuss@gatewaybaltic.com
skype: martins-gatewaybaltic
adrese: Elizabetes street 51,
Riga, LV-1010 Latvia
web: www.gatewaybaltic.com

Sector-based Fact Sheet
The construction industry in Norway
Contents
Market overview: main trends ................................................................................ 3
General requirements for companies doing business in Norway ............................... 4
Corporate taxes ..................................................................................................... 5
Personal taxes ....................................................................................................... 6
Labour environment .................................................................................................. 7
Contracts ............................................................................................................... 9
Wages in the construction industry ........................................................................ 9
Working hours, holidays and sick leave ................................................................. 9
Dismissal ............................................................................................................. 10
Trade Unions ....................................................................................................... 11
Industry specific requirements ................................................................................. 12
Insurance and guarantees ................................................................................... 16
Company certificates ........................................................................................... 16
Individual certifications ......................................................................................... 17
Infrastructure, repair and maintenance ................................................................ 17
Public and private housing ................................................................................... 17
Non-residential public property ............................................................................ 18
Industrial and commercial construction ................................................................ 18
Conclusions ............................................................................................................ 19
References .............................................................................................................. 20
Construction industry in Norway: Factsheet 2012 Page 2 of 20

Market overview: main trends
Norway’s housing construction industry has seen a renewal of activity in 2011, with
newly started projects’ count increasing by 40% in Q1 2011 if compared to Q1 2010.
This is fuelled by low interest rates and strong customer demand, though the rapidly
increasing prices (by approx. 10% if comparing mid-2010 to mid-2011) may result in
a real estate price bubble.
Source: Statistics Norway
Construction of buildings is the currently most active segment, which has gained
even more momentum in 2011. Between Q3 2011 and Q2 2010, the number of
dwellings started increased by 20%, while civil engineering projects started increased
by 8.8%. 2009 had been the only recession year in the industry, and 2.7% growth in
housing construction was observed already in 2010, as seen in the graph below.
The specialised construction industry is due to the country’s long shape, Nordic
climate and relatively hilly relief have specific requirements towards infrastructure,
and the Norwegian offshore (oil and gas) industry is the largest production sector in
the economy, hence the large weight of specialised construction works in the graph
below.
Source: Statistics Norway
Specialized construction
Civil construction
Construction of buildings
Construction industry in Norway: Factsheet 2012 Page 3 of 20

About 80% of the population own their own
dwelling space: the country’s 4.9 million
population has the 2 nd highest GDP per
capita in Europe (second only to
Luxembourg). In total, there are about 2.3
million dwellings in Norway, which include
1.2 million detached houses. 60% of the
overall housing stock is concentrated in
the Oslo, Bergen and Trondheim areas,
while population density in the northern
parts of the country is much smaller.
A specific trait in Norway is the large
number of holiday houses (e.g. skiing
lodges, summer houses: about 20% of
households have their own holiday house,
which brings their count to about 418,000
holiday homes. This segment has strong
supplier relations with the Baltic wood
panel and log house producers. As seen in the graph to the right, the largest
concentration of holiday houses is seen on the very southern seaside of Norway.
General requirements for companies doing
business in Norway
Although all official sources point foreign companies towards establishing a local
branch in Norway, the legislation effectively allows for providing construction
services, if these are managed from outside of Norway. Any business that
coordinates its Norwegian activities from within the country, must register a local
affiliate. All contractors performing construction works in Norway (regardless of who
awards the contract: public, private or foreign private entities) worth 10,000 NOK or
more must report these projects to Skatteetaten, the tax authority, via the the RF-
1199 form”Information about contracts, contractors and employees” (this can be
done via www.altinn.no). If not providing such information, fines are expected, as well
as liability for the taxes and national insurance contributions that the contractor has
not paid. If falling under the VAT law regulations (annual turnover of Norway-based
activities of a foreign company exceeds 50,000 NOK/year), the foreign company
must have a local representative: this can be a physical or legal person, but they
must have a place of residence or business address in Norway, and they have joint
liability with the foreign company, e.g. for paying VAT.
The Register of Business Enterprises (Skatteetaten) is the entity registering business
operations in Norway; it is part of the larger state registers group located in
Brønnøysund, a municipality in the middle part of Norway. The typical registration
type for foreign firms’ branches in Norway is a limited liability company. There is no
minimum capital requirement. If employees are staying for longer than short
temporary assignments, the foreign company must also register in the Employers’
and Employees Registrar; if any services or products are sold in Norway by the
foreign company, it must also register as a VAT payer. A brief general guide to the
registration bodies and criteria by Skatteetaten is available online.
If selling the service from its home country and sending workers to Norway only for
short, temporary assignments, a business may choose not to register a local affiliate
– the tax laws require that any business that manages its Norwegian activities from
Construction industry in Norway: Factsheet 2012 Page 4 of 20

within the country must be registered locally, but foreign firms managing their
assignments from abroad effectively may post workers without registering an affiliate
in Norway (although all official sources suggest to do so).
Foreign businesses supplying goods or services to Norway must register for
VAT when the supplied VAT-applicable turnover exceeds 50,000 NOK during
any 12-month period. Foreign companies without a permanent local office may
register for VAT through a representative. Rogaland County Tax Collector’s Office
Foreign Tax Affairs Department is the information point in this regard.
It is worth noting the specifics of the Norwegian business relations and negotiations,
which are also reflected in Norwegian legislation (a mixture of common and civil law,
with emphasis on the latter) and court policies. Norwegian courts tend to focus less
on the exact writing in documents and contracts, but more on the fair, reasonable
dealings between the parties involved, and have relatively much flexibility in how they
can interpret contract terms, since they are less dependent on the documentation in
each case: contracts can be both written and verbal, and are based on an offer and
an acceptance. Especially important is the aspect that an offer is binding until its
specified expiry date – hence, when making offers to Norwegian clients, one must
make sure that these can be met, without changes. The contract would also be
deemed valid as of the point when both parties agree on its main aspects. Judges
would likely not take into account a perfectly written, but senseless contract –
instead, they would try to find out the intents of the parties as at the time when they
entered into an agreement. If the Norwegian authorities find that a foreign contractor
has not met his statutory obligations, and this occurs after a fixed price tender has
been accepted, substantial additional costs are likely to incur as a result of the urgent
remedial measures that will have to be implemented. In extreme cases this could
make considerable inroads into any calculated profit. If the error is discovered only
after the contract has been completed, the Norwegian principal or
building owner (or both) may be held financially liable for any error that the
foreign contractor has made in relation to reporting of non-Norwegian employees,
tax deductions and social security contributions.
Samples of contracts for sub-contracting work in building and civil engineering in
Norway are sold by the Norwegian Standards authority via its online-shop.
Corporate taxes
Corporate income tax is 28% flat and paid in 2 instalments, one by February 15 of
the current year, the second by April 15 of the next year.
Dividend and capital gain tax is 28%. Dividends may be taxed: foreign owners’
earnings from their owned Norwegian companies are subject to 0-25% Norwegian
withholding tax, however, for EEA countries, including Lithuania, the rate is 0%.
The standard VAT rate is 25%. Foreign businesses that only supply goods or
services from abroad to recipients in Norway are not liable for VAT in Norway.
However, the imports of goods is a taxable event and VAT is payable at the time of
importation by the owner of the goods. Foreign-owned businesses that are
established or resident in Norway are subject to VAT. If the foreign business
supplying goods and services is neither established nor resident in Norway, it must
be registered for VAT through a representative: if registered through a local
representative, the foreign business has the same rights and obligations that a
normal registration for VAT would have entailed.
Construction industry in Norway: Factsheet 2012 Page 5 of 20

Skatteetaten maintains a separate information page for foreign employers in Norway,
where additional information on tax deduction cards, certificates of pay, the national
insurance system, reporting forms RF-1199 and RF-1037 regarding contracts and
employees in Norway, etc. Another guide by Skatteetaten explains the more general
tax rules in Norway.
Personal taxes
Individuals are considered Norwegian tax residents if staying in Norway for 183 or
more days during any 12 month period, of for 270 or more days in any 36 month
period.
Personal income tax is 28% in most municipalities (except for 24.5% in the very
northern part of the country: Finnmark and Nord-Troms). Another “gross personal
income” tax or surtax is applied to wages, earnings from self-employment and
pensions. The gross personal income rates vary depending on an individual’s annual
taxable income:
Up to 490,000 NOK/year: the rate is 9.0%
490,001-796,400 NOK/year: the rate is 7.0%
796,400+ and more NOK/year: the rate is 12.0%
The average wage for full time employees in 2010 in Norway was 38,100
NOK/month, hence the gross income tax rather applies to wealthy individuals, as a
progressive income tax. The personal tax allowances vary depending on the income
bracket (above), but for the lower bracket it is 45,350 NOK/year (if the tax subject is
not married and has no dependents). Note that for foreign employees, the allowance
would be adjusted for the number of months that they have worked in Norway (which
is less than 183 days or 6 months per year, in order to be regarded as a non-resident
worker).
Capital gains are taxed at 28%. Wealth tax is charged based on the net value of
assets, at 0-1.1%, depending on the municipality. Real estate tax is 0.2-0.7% of the
estate value, but some municipalities do not charge it. Inheritance and gift tax is
taxed progressively with up to 15%.
All employees in Norway must have a tax deduction card, which is used by the
employer to withhold the applicable tax from their salary; Skatteentaten, the general
tax collection authority in Norway, issues these cards to the employers who apply for
it, and, when receiving their COFTA (payroll withholding tax) card, provide its 2 nd part
to all their employees. If no tax deduction card is present, the employer must withhold
a 50% flat tax from the gross salary. All employees must be recorded via an RF-
1199 Information on contracts/Information on employees form.
Deductions in salary income will in most cases be limited to a so called “minimum
deduction” of 38%, limited to NOK 78,158 per year (in 2012, but the deduction
maximum and minimum may change annually; this deduction will be adjusted
proportionally to the months spent in Norway). Double housing costs and costs for
home visits will in addition be deductible for commuters. Foreign employees can in
addition claim 10% standard deduction for foreigners, up to 40,000 NOK. An
alternative is to choose a 10% standard, whereupon all allowances and other
remunerations received must be included in the gross taxable income, and double
housing costs and costs for home visits are not deductible.
Construction industry in Norway: Factsheet 2012 Page 6 of 20

Communication regarding the social security contributions is takes place via the local
Labour and Welfare Service office near the place of residence of the employees, or,
if the employer resides outside Norway, at the welfare office nearest to the
construction site.
Note that tax cards are sent directly to the employees and that the employer must
submit certificates of pay and tax deducted (CPTD) by January 20 each year,
otherwise the penalty is 10 NOK/day for each unreported employee. If the form lacks
information, e.g. the Norwegian ID number (D-number), it will not be regarded as
submitted. In case a D number has yet not been provided by the respective authority,
the person’s date of birth, followed by “5 x 0”, should be submitted as the D number.
It is also important to report all benefits, taxable and non-taxable, that the employee
has received in the CPTD form.
The CPTD is also known as the RF-1015 form. The application form for tax
deductions for foreign nationals is the RF-1209 form. Both can be completed via the
Altinn register. See the Norwegian Tax Authority (www.taxnorway.no) for more
information.
Norwegian tax return forms for employee are pre-filled and sent directly to the
employees by the tax authority (prefilled tax return calculation form RF 1030 and
questionnaire RF 1030S). The pre-completed tax return is based information from
employers regarding salary, and from and various sources like banks etc regarding
deductible interest costs, capital returns and so on. If changes are not made, the
individual will be taxed based on the pre-completed tax return. These have to be
returned by April 30 of the year after the income year.
Labour environment
Employees in Norway are well protected by legislation, and have generous holiday
allowances and rights with regard to childcare, non-discrimination and working time
limits. The construction industry is one of the few sectors in Norway to have a
minimum wage.
The Norwegian Labour and Welfare Administration (NAV) and the Norwegian Labour
inspection Authority (Arbeidstilsynet) are the key authorities controlling the labour
environment in Norway. NAV’s guide for construction workers coming to Norway in
English is available online.
The Norwegian Directorate of Integration and Diversity also maintains an online
information repository for migrant workers.
Foreign temporary workers in Norway are regulated by Regulations of December 16,
2005, No. 1566 (“Forskrift om utsendte arbeidstakere”, only the Norwegian text has
legal power), with an English version available from the Labour Inspection. These
regulations are in line with the EU directive 96/71/EC. The regulations specify which
parts of the Working Environment Act, Holidays Act and Labour Market Act also
apply to foreign posted workers to Norway. Essentially, these regulations are to
prevent “social dumping”, in particular, ensuring that foreign posted workers have pay
rates and working conditions that are meet the minimum Norwegian standards.
The only exception would be foreign workers installing or assembling supplied goods
for up to 8 days during any 12 month period – these are not subject to the Norwegian
requirements regarding pay and holiday, overtime pay, etc., but this exception does
Construction industry in Norway: Factsheet 2012 Page 7 of 20

not apply to workers in the construction sector (including repairs, maintenance,
alteration, demolition of buildings).
Any companies active in staffing, i.e., providing temporary staff in Norway as their
core activity, must register in the staffing enterprises registrar with the Norwegian
Labour Inspection Authority (Arbeitstilsynet).
Particularly important is to note that, while posted workers in most industries are not
subject to Norwegian collective agreements (and hence have no minimum wage
defined, as Norway does not enforce a universal minimum wage), the construction
industry and the shipbuilding sector are exceptions – in these areas, the Norwegian
collective agreements are deemed generally applicable.
Despite the above limitations, surveys among Norwegian construction companies
showed that construction and manufacturing firms do commonly use Eastern
European labour as bought-in service (as opposed to direct hires): in 2006, 19% of
construction companies replied in a survey that they had used labour from Eastern
Europe, and in 2009 already 33% of Norwegian construction firms said so. In 2008,
the number of registered posted workers from CEE countries to Norway exceeded
22,900.
Employees from EU/EEA countries do not need a work permit in Norway, but within 3
months after their arrival, they must request a residence permit. If already staying
within Norway, the application must be made to the local police station; if the
employment is yet being planned, one should apply to the local Norwegian embassy.
The National Insurance Scheme (NIS) provides free medical treatment to its
members who are admitted to a hospital. Employees in Norway are automatically
members of the NIS. The local Labour and Welfare Service Offices (NAVs) is the
public contact point in these issues.
It is not mandatory to be registered in the National Population Register or to be a
citizen, or to pay taxes in order to be a member of NIS, but applicants must reside in
Norway legally. NAV regards individuals who have resided in Norway for 12 months
as members automatically, or, if a person moves to Norway (and notifies the
authorities with the RF-1401 form regarding their move to Norway) with the intention
to stay for 12+ months, they are regarded as a member from the date of arrival to
Norway.
Generally, all employees are part of the compulsory national insurance scheme as of
their first day of work in Norway. However, employees working in 2 or more countries
and not resident in Norway, or who are sent to work in Norway by their regular
employer for a time of up to one year at the expense of this employer, can be
exempted from the Norwegian social insurance system, instead keeping their home
country social insurance system. In this case, NAV does not provide free healthcare
services, but the home country health care services should. For employees from EEA
countries who have a social security number in their home country already, an A1
(previously E101) form should be filled in and submitted to the Norwegian Labour
and Welfare Service (NAV); the form is available from the social security authority in
their home country. It is recommended to have the A1 form filled in advance for all
possibly employed personnel already before signing the contract, as any offer to
Norwegian clients may be regarded as binding, and, in case delays due to obtaining
respective documentation occur, the subcontractor may be held liable for delays and
related losses.
Construction industry in Norway: Factsheet 2012 Page 8 of 20

If workers reside in Norway for less than six months, special tax rules apply, but a tax
card is still required. If an employee starts to work without a tax card, the employer
must deduct 50% tax, while typically the tax is about 1/3 of the salary.
The social security contributions rate is 7.8% for employees and 11% for selfemployed.
For employees from EEA countries who have a social security number in
their home country already, an A1 (previously E101) form should be filled in; it is
available from the social security authority in their home country.
Contracts
An employment contract is needed no later than 1 month after starting the
employment relationship: it states the name of the employer and of the employee, the
period and conditions of employment, and is dated and signed by the employer.
Wages in the construction industry
The construction industry is an exception (along with shipbuilding and agriculture) in
that it has a minimum wage in Norway; other industries do not have it. The collective
agreement text in Norwegian that specifies the minimum wages is available online.
The minimum hourly wage rates have last been increased as of April 2011:
Skilled workers: NOK 159
Unskilled workers with no experience in construction work: NOK 143
Unskilled workers with at least one year’s experience in construction work:
NOK 149
Employees aged under 18 can be paid a minimum rate of 96 NOK/h.
By October 2011, the average monthly full time wage in construction was 33,200
NOK. Year-on-year wage growth between 2011 and 2010 was at 2-4%, depending
on the specialization. Below, some average monthly wages in certain construction
worker specializations as of October 2011 are given:
Electricians: 33,600
Formwork carpenters: 36,600
Directors and chief executives: 61,900
Professional technicians: 44,000-52,000
Bricklayers: 31,900
Concrete workers: 34,300
Plumbers: 34,900
Painters: 30,200
Road workers: 37,700
Basic workers: 28,200
Source: Statistics Norway
Generally in Norway, the lowest wage limits are at around 120 NOK/h or 18,000
NOK/month for full-time employment. The 10% of population with the lowest earnings
had a monthly wage of 20,600 NOK on average.
Working hours, holidays and sick leave
Maximum working hours are 9 h per day and 40 h per 7 days. Standard are 35-38
hours a week. Alternative arrangements can be made to allow for more work
temporarily, but the average working hours limits per week remain the same as
above. Night work and Sunday work is only allowed if the nature of the work requires
this.
Construction industry in Norway: Factsheet 2012 Page 9 of 20

If working for more than 5.5 hours daily, employees are entitled to breaks of up to 30
min. per day in total.
Overtime is paid at a +50% rate over the regular hourly pay, but working hours
between 9 pm and 6 am and on Sundays and holidays are paid at a double rate. The
employer also covers:
the employees travel costs from home to the building site and back, for a “fair
number” of trips during the construction project;
food and lodging costs at the construction site, i.e., a daily allowance;
working clothes and protective gear.
Shift work employees are entitled to a shift-work supplement.
Self-declared sick leave can be taken for up to 3 days at a time, up to 4 times per 12
months; if taking leave for more than 3 days, a medical certificate from a doctor is
required. Note that the doctor may give a full 100% sick leave, but may also allow the
employee to perform part of their work, e.g. on a 50% sick leave.
To receive sickness benefit payments, one has to be employed at least 4 weeks
before the sick leave begins; the maximum duration for sick leave is 52 weeks;
sickness benefit is paid from the first day of absence: the employer pays it for the first
16 days, while after these the Norwegian National Insurance scheme takes over the
out-payment.
Apart from international holidays, May 1 and 17 are public holidays; normal wages
should be paid on the public holidays, including May 1 and 17. In Norway; the
minimum annual holiday allowance for a full-time working person is 25 working days.
Holiday pay is calculated as 10.2% of the previous year’s total wage, and is normally
paid in June, but part of it can be withheld and paid when the holiday is actually
taken.
Childcare leave can be taken until the employee’s child is 3 years old; the first year of
leave is paid by the Norwegian Labour and Welfare Service NAV. The employer, for
staff planning purposes, can demand that the childcare leave be taken as a single
period. If an employee's child is ill, up to 10 days per year extra leave can be taken;
up to 15 days if the employee has more than 2 children. Generally, women are
entitled to paid leave for this purpose. Further details regarding the benefits and
leave allowances in various cases are outlined in the Working Environment Act.
Dismissal
The standard termination notice is one full calendar month; for staff on a trial period it
is 14 days. Termination must be given in writing.
An employer can, in whole or in part, be excused from the obligation to pay wages,
and an employee can temporarily be excused from the obligation to work, in
connection with temporary lay-offs. Reasonable grounds for lay-offs can, for
example, be a lack of orders, the over-accumulation of stock, accidents or similar.
Even if the employee is temporarily laid-off, the employment relationship persists.
Temporary layoffs. Notification of a lay-off shall be given in writing at least 14 days
before it is implemented, and the employee shall receive normal pay during the
period of notice. After the period of notice, there is a period during which the
employer is obliged to pay wages. This is currently five days, and 15 days if the
employee is laid off for less than 40 per cent of his/her normal working hours. The
maximum period an employee can be laid off is currently 52 weeks. The number of
Construction industry in Norway: Factsheet 2012 Page 10 of 20

days the employer is obliged to pay wages and the maximum lay-off period can vary.
Contact NAV for up-to-date information.
If an employer dismisses an employee who has been laid off, the lay-off will
immediately cease to apply. Employees have a duty to work and employers have a
duty to pay wages during the agreed or statutory period of notice, even if the
employer has no work to offer. An employee who has been laid off can, however,
hand in his/her notice with 14 days’ notice if the period during which the employer is
obliged to pay wages has come to an end.
An employer may dismiss an employee if he/she has reasonable grounds for doing
so. The reasonable grounds must be based on circumstances relating to either the
employee or the employer/ enterprise. Unless otherwise specified, the period of
notice is one month, which starts on the first day of the month after notice has been
given. The law also contains absolute rules about periods of notice from 14 days to
six months, depending on the length of employment and the employee’s age.
An employee who is completely or partially absent from work cannot be dismissed
due to his/her absence during the first 12 months, unless the employer can prove
that the dismissal is unrelated to the illness. After the first year, illness can constitute
reasonable grounds for dismissal, but this must be subject to a concrete assessment.
An employee cannot be dismissed because she is pregnant. If the employer cannot
prove that the dismissal is unrelated to the pregnancy, the dismissal is unlawful. An
employee who is on pregnancy leave, compassionate leave, maternity leave or is in
the first year of parental leave (also in adoption cases) must not be dismissed with
effect during the period of leave when the employer is aware of the reason for the
absence. If the employer has reasonable grounds for the dismissal, the period of
notice starts when the leave of absence is over.
An employer can summarily dismiss an employee if the employee is in gross breach
of his/her obligations or is otherwise in material breach of the employment contract.
This means that the employee will not be given a period of notice and no pay from
the day she/he is summarily dismissed. The employee is not entitled to remain in the
position during the hearing of a dispute unless the court so rules. In other respects,
the same rules apply as for ordinary dismissals.
Note that employment agencies are not allowed to receive payment from employees
in Norway.
Trade Unions
Generally, a company must enter into the respective
collective agreement, if already 10% of its relevant workforce
are union members. In Norway, trade unions have considerable
bargaining power and influence on the working environment and
local politics. Landsorganisasjonen (www.lo.no, logo to the right)
or The Norwegian Confederation of Trade Unions is the largest
such entity in Norway.
Trade union density, although gradually declining over the last decade, remains
above 50% of all workforce. Foreign visiting workers, of course, have a lower
participation rate in trade unions, e.g. a 2007’ survey among Polish construction
workers showed that 14% were members in the corresponding trade union.
Construction industry in Norway: Factsheet 2012 Page 11 of 20

The Norwegian United Federation of Trade Unions,
(Fellesforbundet, www.fellesforbundet.no, logo to the
right) is member of Landsorganisasjonen, and is the
main private sector trade union, also in the
construction sector. It has about 153,000 members from construction, shipbuilding,
textiles, graphic design and other industries, and has over the the last years been
focusing on recruiting new members, including migrant workers, from the
construction sector. E.g. the Oslo branch of Fellesforbundet has worked towards
attracting Polish and Baltic workers in the Oslo area. There are more than 1,000
construction trade union members in Norway of Polish and Baltic origin already.
The above organisations were effectively the ones to achieve the inclusion of migrant
workers into the Construction Sector Agreement between LO and Fellesforbundet on
the one side and the Federation of Norwegian Construction Industries on the other
side, in particular due to increasing numbers of Polish and Baltic construction
workers in Norway. This agreement mandates that migrant workers should be paid at
least the minimum wage rates as outlined in the respective previous section of this
report. Some other unions’ sites are:
• www.afag.no (for architects)
• www.nito.no (for engineers)
• www.tekna.no (for engineers)
For more information on the Norwegian trade unions sector, see the respective
Eurofound report.
Industry specific requirements
Construction sites are carefully inspected by Norwegian authorities, hence all on-site
employees must always carry a visible ID card and have respective documentation
available. If documentation is missing, fines can be levied by the authorities. The
Norwegian Labour Inspection Authority also details the key parts of the procedure to
apply for a construction permit, which is done by general contractors. This is done via
the form 5177:2010 by the Directorate of Construction Quality (DIBK). The Labour
Inspection then charges a fee, depending on the size on the project, and, if the
documentation for work safety at the planned site is in order, grants its consent to the
construction application.
RF-1199 form regarding contract-work done in Norway: required by the
Norwegian Tax Administration for assignments that are given to foreign contractors in
Norway (link to PDF version).
The form requires indications of the contract, the subcontractor, and part 2 must be
filled in for all individual employees that are to work in Norway. Authorities focus on
having this information, and may levy fines if not receiving it. The form must be
submitted within 14 days after each respective employee has started working in
Norway, otherwise penalties are likely. Note that as of January 2010 the RF 1199
form incorporates the previously separate RF 1198 form regarding employees.
All employees indicated on a RF-1199 form obtain D-numbers (Norwegian personal
ID numbers) from the Central Office for Foreign Tax affairs. This can take time,
therefore one should submit the respective RF-1199 form as soon as possible, i.e.,
after signing the contract. This can be done via Altinn.no, the state portal for
submitting reports to authorities.
When registration in all the relevant registers is completed, an employee of a foreign
Construction industry in Norway: Factsheet 2012 Page 12 of 20

company, who actually will be working in Norway, may apply for a user-id at the
official Norsik website for identity cards.
This person needs to fill out an online form and will
receive a user-id within 4 hours. with this user-id this
person may upload a photo, a copy of a valid id i.e.
passport as well as a copy of the person’s signature.
These copies need to be of good quality and they
need to be in one of the following formats: *.gif, *.jpg
or *.png.
The following are general standards and certificates common in the construction
industry in Norway; specialist niches may have additional standardisation. The
general Construction Law, or regulations No 488 of March 26, 2010, is available
online in Norwegian. Chapter 11 outlines the qualifications that a company needs
(the regulations are based on directive 2005/36/EC) to be able to act as a general
contractor in Norway, and chapter 10 specifies the requirements towards contractors’
management systems.
Various detailed standards for types of construction works in Norway are available
from the web-store of the Norwegian standards authority:
• Construction drawings standards (e.g. CAD drawing standards);
• Energy efficiency requirements for buildings;
• Standards in various areas of building, e.g. earthworks, roofing, metal-works.
The full text of the health, environment and safety (HSE) requirements at work by the
Norwegian Labour Inspection is available online in English.
The key points in this document foresee that workers and the enterprise must have
access to the relevant health and safety information, and documents in place
outlining the risks at the workplace, documented responsibilities for various work
aspects, and documented plans of how to reduce the risks. Many companies choose
the OHSAS 18001 and the ISO 14001 certification as a means of showcasing their
compliance with HSE regulations.
Also, when two or more enterprises are working at the same site, they must agree in
writing on the following:
1. which one of them is responsible for coordinating their joint activities and
subsequently has responsibility over the HSE norms – the individual
coordinator has to be specified there;
2. an agreed HSE plan must be in place;
3. the Norwegian Labour Inspection Authority must be sent a notice of
construction work if the project is to last for more than 30 workdays, or if the
work exceeds 500 man-days; the notice must contain the information
specified in Section 9 of Regulations 337 (see link below).
For subcontractors bearing responsibility for their part of the assignment, it is
important to compare their HSE policies with those of the contracting party.
Workers must be informed of the HSE plan points, and understand it.
The more detailed HSE regulations document in construction works is Regulations
No 337 of April 21, 1995 “Safety, health and working environment on construction
sites” are available online in English, and at the end of the document, the notice form
of temporary workplaces (e.g. construction sites) to the Norwegian Labour Inspection
Authority is included.
Construction industry in Norway: Factsheet 2012 Page 13 of 20

These are based on the EC Directive 92/57/EEC of 24 June 1992. However, these
regulations have been updated in 2009, and the currently valid version, Regulations
of 3 August 2009 No. 1028 regarding HSE practices at construction sites, also known
as the Building Owner Regulations, is only available in Norwegian. These regulations
also include rules on handling heavy construction machinery.
Further relevant documents are:
Act relating to inspection of electrical installations and electrical equipment
(Act No. 4 of 24 May 1929)
Section 48, cf. section 41, of the Civil Defence Act (enterprises required to
maintain safety and emergency preparedness measures) (Act No. 9 of 17
July 1953)
The Product Control Act (Act No. 79 of 11 June 1976)
The Working Environment Act (Act No. 4 of 4 February 1977)
The Pollution Control Act, where the enterprise employs staff (Act No. 6 of 13
March 1981)
Act relating to fire and explosion prevention (Act No. 20 of 14 June 2002)
The Norwegian Directorate of Labour Inspection has an online guide to asbestos
works, and the Norwegian standards authority has work health, safety and
environment standard for construction work available online (but only in Norwegian),
which details the generic safety procedures at construction sites.
On a state-policy level, the Norwegian Climate and Pollution Agency (KLIF) is
controlling construction waste, of which there are about 1.5 million tons produced
annually (18% of total waste), according to Statistics Norway’s section on
construction waste. The construction sector sent about 13,000 tonnes of hazardous
waste for processing in approved facilities in Norway in 2010. The main categories
therein are: waste containing oil; waste of heavy metal and polluted matter; corrosive
waste. KLIF is also the contact point for companies with regard to REACH chemicals
handling regulations.The regulations for chemicals are compliant with the REACH
chemicals handling directive – Norway as an EEA country has as of June 2008
implemented these chemicals handling regulations. The chemicals that require
special approval in the EU (e.g. certain phthalates, arsenic compounds) as listed by
the European Chemicals Agency, also require similar approval in Norway, and may
be used up until 2015, if certain permits are received from KLIF. The Norwegian
authority has substantially reduced use of dangerous chemicals in construction (e.g.
use of solvents decreased from 6,000 tons in 2005 to 2,000 tons in 2000): it has
implemented stricter requirements over the last decade, and continuously requires
construction companies to justify their use of hazardous chemicals, and to consider
environmentally friendly alternatives. A full list of chemicals used must be kept by
construction companies at all times, and KLIF may perform on-site inspections to
control for the use of chemicals. Foreign companies aiming to work in Norway should
pay particular attention to regulations on production, import and other activities with
hazardous chemicals, for which KLIF provides an English translation.
General information on hazardous building products in Norway (solvents, glues,
lacquers, paint, etc.) is also available on KLIF’s managed information website.
Chemicals used in construction are typically managed in line with the BASS system
by the large general contractors in Norway. This is an information exchange platform
managed by coBuilder (http://www.cobuilder.no) and serves as an online resource for
Construction industry in Norway: Factsheet 2012 Page 14 of 20

safety data sheets on chemical inventories. Note that in 2012, BASS is to be
replaced by the international project ChemXchange.
There are typically separate regulations for each category of dangerous waste, e.g.
for handling explosives, flammable goods, high voltage installations, etc. On a
construction site, the appointed safety delegate must provide workers with access to
the relevant safety instructions. Most of these are only available in Norwegian from
the state legislation portal Lovdata, similarly to the general law on safety
requirements in construction work. Generally, its main points are that the general
contractor carries the responsibility for on-site safety, and that a safety representative
(or several, if needed) must be appointed for the site, and a safety plan must be in
place detailing the safety measures in risk areas. The regulations regarding exposure
to chemicals at the workplace are also only available in Norwegian. Regulations of 16
February 1995 No. 170 specify work site and workplace safety requirements,
regulations of 26 April 2005 No. 362 specify how to treat asbestos safely, regulations
of 20 May 2009 No. 544 concern machinery, etc. Asbestos works are occasionally
performed; e.g. the Norwegian government building (Ministry of Justice) is believed
to be asbestos-contaminated during the Breivik-bombing in July 2011.
The Norwegian Labour Inspection Authority sets the limits for how long a worker can
be exposed to hazardous substances per an 8-hour working day, and requires that
an employee register is kept on all personnel who are exposed to hazardous
chemicals, especially for carcinogenic, mutagenic and lead-containing substances.
The section on chemicals regulations at the workplace by the Labour Inspection is
available in Norwegian only, but provides links to sub-topics, e.g. dust exposure,
solvents, safety data sheets, chemicals database and other regulations in this subject
area. Another section is dedicated to protective equipment, and provides links to
requirements on gloves, helmets, accident insurance, safety signs, and other
relevant requirements.
If violating the above requirements, the Norwegian Labour Inspection Authority would
likely give the enterprise an order to correct the situation; if the order is not met, the
Authority can impose a fine – specific amounts of fines may vary depending on many
factors, but the main principle is that the Authority makes sure that violating the
Working Environment Act is unprofitable.
Certain penalties have maximum thresholds, e.g. for late VAT return reports a
surcharge of NOK 250 to 5,000 would be collected by the tax authority. Skatteetaten
may also fine individuals who are working in Norway for more than 6 months, but fail
to register with the relevant authorities and e.g. do not notify the authority of address
changes (also when moving out of Norway; the respective form number is RF1401E).
Veidekke and NCC were in 2011 fined with million-NOK sums for road construction
tender bid coordination in 2005.
When construction machinery is brought to Norway by foreign firms for temporary
works, they are subject to VAT when importing, but a compensation can be received
when re-exporting these (if re-exporting within 1 year). The repayable tax is reduced
by 5% per month, counting as of the customs clearance date. The relevant legislative
text in Norwegian is Regulations No. 66 of June 19, 1969.
Relevant safety instructions for construction machinery must be available in
Norwegian from the HSE representatives on the site, hence, if instructions are only
available in the source country language, a translation may be required: the general
Construction industry in Norway: Factsheet 2012 Page 15 of 20

contractor’s work safety representative can specify the detail to which this information
is needed.
Construction machinery can use the marked (coloured) duty-free diesel in Norway,
similarly to agricultural machinery. It is called “Avgiftsfri” at petrol stations.
Insurance and guarantees
Contractor insurance has been discussed by the government several times, but is not
mandatory yet in Norway (unlike in Denmark, where it is mandatory in private
housing construction as of April 2008). However, a number of insurance companies
offer it for various types of construction companies.
Home (property) insurance is relatively common, and most construction companies
also have contractor insurance, as the reliability is a key sales point: some firms offer
up to 10 years construction quality guarantees, as offered e.g. by the largest housing
builders Selvaag Property ASA and Skanska Property, possibly even coupled with
project insurance for a few years.
The Housing Construction Act foresees a 5-year warranty for newly delivered
housing. This norm could be doubled to 10 years, however, as there have been
proposals towards it. Otherwise, housing has a similar warranty term as currently e.g.
mobile phones and consumer electronics (as required by the Norwegian Consumer
Purchase Act of 1997).
Company certificates
StartBANK is a common qualification standard by the
Norwegian Construction Industry Association (Byggenæringen
landsforening, BNL, http://www.bnl.no) and operated by
Achilles. StartBANK-accredited companies are listed online –
both buyers and suppliers.
Suppliers, i.e., construction contractors can apply to gain access to the StartBANK
questionnaire on financial information, capacities, insurance, quality systems, health,
safety and environment policies, etc. Registration costs 4,000 NOK (incl. VAT) for
companies with an annual turnover of 10+ MNOK, or 2,000 NOK/year for companies
with a turnover that is less than 10 MNOK/year. The order form for registering with
StartBANK is available online.
A filled in form is to be returned to StartBANK via the e-mail or to the fax number
provided on the form. Major Norwegian general contractors in construction like
Skanska, Veidekke, NCC, Mesta, Backe Gruppen, use StartBANK as a suppliers
directory. Achilles also does free demos of the database.
Companies aiming to act as general contractors in
Norway have to attain a respective “central approval”
certificate from the Directorate for Building Quality. The
regulations for the process are described in Norwegian.
The approval is valid for 3 years, whereafter it must be
updated.
The directorate also awards certifications to foreign companies in specialist areas,
e.g. glass facade design and production; glass facade installation.
Construction industry in Norway: Factsheet 2012 Page 16 of 20

The research institute SINTEF, more specifically, its Building and Infrastructure unit,
norway construction green cardmaintains a certification system for construction
materials, available online. See the relevant description in English on SINTEF’s
website.
Individual certifications
Individual construction workers who handle more complex and responsible tasks are
supposed to acquire a trade certificate, called “fagbrev”. It is a vocational education
certificate for specialists with at least 5 years work experience in an area of
construction, typically obtained in about 2 years, and the cost of studies, depending
on the specialization, can be about 13,000-18,000 NOK. Both a practice test and a
theoretical exam must be passed to attain such a certificate. It is available in the
following construction-related areas:
Carpentry
Ventilation, copper, tinsmith works
Bricklaying
Sales of lumber and building materials
Roofing
Concrete works
Further trade related (i.e., timber, construction materials sales) specialties
Construction companies looking to hire individuals typically require a fagbrev
certificate and experience of several years in the construction industry. Other
countries’ similar craft certificates are typically not recognized in Norway. This
is why most foreign construction workers are paid as unskilled staff in Norwegian
construction companies.
Infrastructure, repair and maintenance
Road construction planning and road maintenance is done by the Norwegian Public
Roads Administration. Its activities reached an output of 10,300 MNOK in 2010, and
66.5% of this output is purchased goods and services. However, the Administration
manages only country-significance roads; municipalities cover the remaining roads,
and as of 2010, their managed share of roads has increased, i.e., the state only
maintains the main roads now (ca. 10,400 km, while previously it was 27,470 km).
Limited information on current road projects is available at the Administration’s
English website, but more extensive information is available only in Norwegian.
To participate in state and municipal construction tenders (in infrastructure, but also
in other construction types), an affirmation by the Norwegian Tax Authority confirming
that all taxes have been paid by the bidder will be required.
Public and private housing
If not working as the general contractor in residential construction, who needs an
approval by the Directorate for Building Quality (see previous page), subcontractors
are not specifically required to gain certain certificates. However, the large general
contractors in Norway do typically use StartBANK and ask their suppliers to do so as
well. E.g. Skanska (about 4,000 employees in Norway) has StartBANK approval, and
is a voluntary member of the Green Dot Norway scheme, and uses the online
chemical database BASS, and various other environmental certificates: ISO 14001
environmental management certification, has had BREEAM and LEED approved
green building and passive housing projects. Veidekke, the biggest construction
company in the country, has various agreements in place for human and workers’
rights, its CSR policy, passive housing projects, uses BASS for chemicals handling,
and StartBANK for supplier assessment.
Construction industry in Norway: Factsheet 2012 Page 17 of 20

Various foreign certifications may have little relevance in Norway, hence general
contractors are free to assess the skill class of hired-in posted workers, which in turn
means that even specialist foreign staff may be paid at the minimum rates that are
set in the collective agreement for construction workers’ wages (i.e., as unskilled
workers).
Tenders for residential construction are typically published by the respective
municipality, but some tender aggregator sites that publish free information are
available, e.g. http://www.buildings.no/
Social housing construction takes place on a municipal level, and municipalities’
welfare offices run a housing allowance scheme: individuals with low income and
high household costs can apply for social housing to their local welfare office (NAV
branch), which allocates housing in cooperation with the Norwegian State Housing
Bank.
Non-residential public property
Within public property construction that is not related to social housing, Statsbygg is
the key governmental advisor institution for construction and property management.
It owns 2,350 buildings on about 600 complexes in Norway and abroad (e.g.
Norwegian embassy buildings), has a yearly budget of about 2.9 billion NOK, and
acts as the construction commissioner for new buildings, working on about 160
projects at any time, and completes 20-30 major ones each year. Stastbygg has an
online list of ongoing projects as well as one for finished constructions.
Current tenders for construction projects are available on the dedicated Statsbygg
website section.
Take note that government buildings may have particularly high requirements for
energy efficiency, disabled persons’ accessibility, etc., as the Norwegian authorities
have a lead-by-example approach to recommended construction practice. Statsbygg
itself promotes the BIM (building information models) methodology for construction
and building management, with a detailed manual being available online.
Industrial and commercial construction
The Industrial Development Corporation of Norway (SIVA) is a government
corporation and investor into industrial clusters, which often involves infrastructure
development. SIVA has financed the early stages of a number of projects, e.g.
industrial parks, in the Baltic countries as well. Following SIVA’s activities can hence
point to new infrastructure development projects.
Norway’s offshore industry (oil and gas platforms), but also its hydropower stations
(Norway is Europe’s biggest hydropower producer) network and roads infrastructure
towards the northern regions are continuous sources of large infrastructure projects.
Various particular regulations apply to the offshore sector construction companies,
which typically are established and specialized Norwegian infrastructure contractors.
English names to the legislation categories are found on the Petroleum Safety
Authority’s website: these include both the generic Norwegian construction
regulations as well as the offshore-industry specific ones, in particular the regulations
on technical and operational matters.
Construction industry in Norway: Factsheet 2012 Page 18 of 20

Conclusions
Norway as a market for construction services has relatively stringent requirements
towards foreign subcontractors. A lot of attention by trade unions and relevant
authorities has been devoted to the construction sector over the last decade,
however, full compliance with the regulations has not been achieved – there still are
many companies and individuals performing unreported construction work. However,
to achieve significant turnover in construction in Norway, the local regulations must
be observed. Otherwise, legally, only small contracts can be occasionally carried out
in Norway, without investments in compliance with local regulations.
Particular requirements include the construction workers’ ID cards, which must be
carried by all on-site personnel, and the requirement to register for VAT when
turnover of services sold to Norway exceeds 50,000 NOK/year. Also, the work safety
requirements encourage a permanent establishment in Norway, e.g. via a local
private limited liability company (subsidiary), which acts in line with the Norwegian
legislation. Still, it is possible, at such a company, to use posted workers, i.e., such
personnel that only work in Norway for less than 183 days per year, and in this way
not to have them registered under the Norwegian social security system. Foreign
certifications of construction professionals are largely not recognized in Norway, only
the local fagbrev certificates are. Specialist consultants may still be appreciated, but
generally foreign workers are likely to be paid the minimum rate, as unskilled
workers. The Norwegian labour market in general has generous holiday, minimum
pay (specified per industry in the respective collective agreements) and other
provisions. These must be conformed to by foreign subcontractors in Norway.
Collective agreements must be entered into if 10% or more of the company’s
workforce are members in the relevant Norwegian trade union, however, it is typically
the larger foreign subcontractors in Norway that have to do so.
Given the extensive requirements, likely the best entry strategy into Norway is to find
a suitable general contractor who can help to settle the required formalities.
Generally, it is possible to communicate in English, as most of the relevant
specialists and university-educated personnel speak this language, but having
Norwegian language skills is a definite advantage when developing activities towards
Norway. This also applies to basic construction workers, because the on-site
language is typically Norwegian (even if relevant instructions, safety information, etc.
are translated into English): basic information is shared in English, but key details
may only be available in Norwegian.
Construction industry in Norway: Factsheet 2012 Page 19 of 20

References
Altinn: public reporting portal https://www.altinn.no/en/
Norsik: Construction ID cards https://www.norsik.no/byggekort/Default.aspx
Norway.no: public sector guide http://www.norway.no/temaside/tema.asp?id=200
Legislation: Lovdata http://www.lovdata.no/info/lawdata.html
StartBANK supplier system http://www.achilles.com/en/Norway/our-sectors/construction/
Statistics Norway http://www.ssb.no/bygg_en/
The Directorate for Construction http://www.dibk.no/
Quality
The Norwegian Construction http://www.bnl.no
Industry Association
The Norwegian Confederation of http://www.lo.no/language/English/?tabid=1735
Trade Unions
The Norwegian Labour Inspection http://www.arbeidstilsynet.no/artikkel.html?tid=79289
Authority
The Norwegian Tax Administration http://www.skatteetaten.no/en/International-pages/
The Norwegian United Federation http://fellesforbundet.no/
of Trade Unions
The Norwegian United Federation http://fellesforbundet.no/
of Trade Unions
Construction industry in Norway: Factsheet 2012 Page 20 of 20