The legislation disputes the terms of the coalition arrangement
The German construction industry is expressing concerns over the recently adopted Acceleration Act (Beschleunigungsgesetz), with René Hagemann, deputy CEO of the Association of the German Construction Industry, leading the opposition.
Hagemann argues that the Act, in its current form, may not solve the investment backlog or help tackle the tasks ahead. He perceives the Act as an "anti-construction turbo," warning that it could compromise quality and thoroughness in the approval process.
One of Hagemann's key points is the potential for weaker environmental and safety standards due to speedier procedures, leading to insufficient checks. He also stresses the risk of increased legal uncertainties, as shortening timelines and reducing procedural steps might cause project developers and stakeholders to face increased risks of lawsuits or challenges due to less rigorous review processes.
Hagemann further argues that many delays in construction projects are caused by factors outside the planning approval process itself, such as material shortages or labor deficits. He advocates for close cooperation between industry and public authorities rather than unilateral acceleration measures.
The construction sector in Germany faces enormous needs, including housing, transportation infrastructure, energy infrastructure, schools, and public transport. To meet these demands, all companies, regardless of size, are expected to contribute. Hagemann favors a balanced approach that maintains thoroughness while seeking efficiency improvements.
However, the Acceleration Act is expected to lead to increased effort and bureaucracy, contradicting the agreements for a "fundamental overhaul" and "simplification" of procurement law. The comprehensive awarding of public tenders is a possibility to accelerate projects and minimize risks in suitable cases, but deviating from partial and lot awards currently requires significant documentation effort and is tied to extremely high hurdles.
Public clients in Germany require flexibility and legal certainty for a variety of procurement models and project sizes. A cautious adjustment of the lot division principle is needed to enable comprehensive awards where it is particularly expedient for economic, technical, or time reasons. Simplification in procurement is essential to reduce high procurement, coordination, inspection, and control effort.
Despite these concerns, the German Cabinet has adopted the Acceleration Act. The construction industry will continue to monitor its implementation and impact on the sector, seeking solutions that balance speed, quality, and legal certainty.
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