Statistical Classification of Economic Activities in the European Community, Rev. 2 (2008)

Code:  F
Description:  CONSTRUCTION
Rulings:  Special Purpose Entity (SPE)

Problem statement: Where is the following activity carried out by a unit classified?
- A unit describing itself as a joint venture
- The unit does not have any assets or employees
- The unit is simply a mechanism for two architectural businesses to record and share fees from a specific client and declare them for taxation purposes

Solution: The Working Group specially noted that the joint venture does not have any assets or employees but is simply a mechanism established for taxation purposes, and for that reason it cannot fall under the scope of NACE Rev. 2 classes 64.20 (activities of holding companies) or 64.30 (trusts, funds and similar financial entities). The activity of the Special Purpose Entity should therefore be classified with the same activity as the partner companies.

Decision date: 18.04.2008
Reference to ISIC Rev. 4:  F
This item includes:  This section includes general construction and specialised construction activities for buildings and civil engineering works. It includes new work, repair, additions and alterations, the erection of prefabricated buildings or structures on the site and also construction of a temporary nature.

General construction is the construction of entire dwellings, office buildings, stores and other public and utility buildings, farm buildings etc., or the construction of civil engineering works such as motorways, streets, bridges, tunnels, railways, airfields, harbours and other water projects, irrigation systems, sewerage systems, industrial facilities, pipelines and electric lines, sports facilities etc.

This work can be carried out on own account or on a fee or contract basis. Portions of the work and sometimes even the whole practical work can be subcontracted out. A unit that carries the overall responsibility for a construction project is classified here.

Also included is the repair of buildings and engineering works.

This section includes the complete construction of buildings (division 41), the complete construction of civil engineering works (division 42), as well as specialised construction activities, if carried out only as a part of the construction process (division 43).

The rental of construction equipment with operator is classified with the specific construction activity carried out with this equipment.
This item also includes:  This section also includes the development of building projects for buildings or civil engineering works by bringing together financial, technical and physical means to realise the construction projects for later sale.
This item excludes:  If these activities are carried out not for later sale of the construction projects, but for their operation (e.g. rental of space in these buildings, manufacturing activities in these plants), the unit would not be classified here, but according to its operational activity, i.e. real estate, manufacturing etc.